The American government shut down on October 1, 2025, due to a failure by Congress to pass appropriations legislation for the 2026 fiscal year. The shutdown resulted from partisan disagreements between Republicans and Democrats over federal spending levels, rescissions to foreign aid, and health insurance subsidies, specifically disputes around Medicaid cuts and health care tax credits. Although Republicans hold majorities in both chambers, they did not have enough votes in the Senate to pass a funding bill without some Democratic support. Democrats opposed the Republican-proposed spending bill because they argued it would worsen Americans' access to healthcare. This stalemate left many federal government agencies partially or fully suspended, furloughed roughly 900,000 federal employees, and forced another 700,000 to work without pay. Essential services like Medicare, Medicaid, and Transportation Security Administration continued running during the shutdown. This shutdown marks the eleventh in U.S. history and the third under President Donald Trump.
Key reasons for the shutdown:
- Partisan disagreements on budget priorities and spending levels.
- Contention over cuts to Medicaid and health insurance subsidies.
- Senate votes blocking both Republican and Democratic funding proposals.
- Republicans lacked the 60-vote threshold to overcome a filibuster in the Senate.
- Democrats demanding protections and reversals of healthcare payment cuts as conditions for support.
The shutdown also threatens to impact scientific research and federal workforce size, with the Trump administration considering mass layoffs among federal employees during the funding lapse.
