why did the federal government shut down

The federal government shut down on October 1, 2025, because Congress failed to pass appropriations legislation for the 2026 fiscal year starting that day. The shutdown resulted mainly from partisan disagreements over federal spending levels, foreign aid cuts, and health insurance subsidies. Democrats insisted on continuing enhanced tax credits under the Affordable Care Act, while Republicans pushed for a seven-week funding extension without those provisions. Despite last-minute negotiations and Senate votes, no agreement was reached, triggering the shutdown. Approximately 900,000 federal employees were furloughed, with another 700,000 working without pay, while essential services such as Medicare, Medicaid, and transportation security continued operating during the shutdown.