The U.S. government shut down on October 1, 2025, because Congress failed to pass appropriations legislation to fund the government for the 2026 fiscal year. The shutdown happened after Democrats and Republicans, including President Donald Trump, could not agree on a short-term funding deal. The impasse was mainly over key issues such as federal spending levels, foreign aid cuts, and the continuation of enhanced health insurance subsidies under the Affordable Care Act (Obamacare). Democrats insisted that any funding bill must include extensions of these health care tax credits, while Republicans opposed the conditions attached to the funding. The Senate failed to advance any funding proposals due to filibuster rules, leading to the lapse in government funding and the resulting shutdown. This shutdown furloughed about 900,000 federal employees and caused suspension or reduction in many government services and programs, though some essential services continued to operate.
Both parties blamed each other for the shutdown, with Democrats pushing for health care protections and Republicans wanting to extend current funding without those conditions. President Trump warned of potential reductions in government benefits and other significant measures during the shutdown. This marked the 21st government shutdown in modern U.S. history and the third during Trump's presidency.
In summary, the shutdown resulted from partisan disagreements primarily focused on health care subsidies and budget priorities, with no consensus reached before the fiscal year deadline, leading to the government halting many functions due to lack of funding.
