why does the us government shutdown

The U.S. government shuts down when Congress fails to pass funding legislation or a temporary spending bill before the start of a new fiscal year. This leads to a funding gap that forces the federal government to curtail many agency activities and services, furlough non-essential workers, and only retain essential employees who protect human life or property. The shutdown occurs primarily due to political standoffs between parties over budget priorities and policies, such as disagreements on healthcare subsidies, foreign aid rescissions, or specific spending levels. In the recent 2025 shutdown, the impasse was between President Donald Trump's Republican Party and the Democrats, who could not agree on a spending bill for the new fiscal year. Key points of contention included healthcare tax credits and Medicaid funding cuts. Without passing the bill, the government stopped funding many programs, furloughed about 900,000 federal employees, and left another 700,000 working without pay until an agreement is reached. Essential services like Social Security, Medicare, border security, law enforcement, and air traffic control continued operating during the shutdown. Shutdowns have become a political tactic and a consequence of divided government, where the President and Congress or different chambers may have conflicting priorities. The shutdown ends when Congress passes a new funding bill or continuing resolution and the President signs it into law, restoring government operations and back pay for furloughed workers.