why has the government shut down

The government shutdown in October 2025 occurred because Congress failed to pass a funding bill to finance the federal government for the new fiscal year. The main reasons for the shutdown include partisan disagreements over federal spending levels, foreign aid rescissions, and extensions of health insurance subsidies. Both Democratic and Republican proposals to fund the government failed in the Senate. Democrats demanded extensions to Affordable Care Act subsidies and reversals of Medicaid cuts, which Republicans opposed. Meanwhile, Republicans pushed for a short-term funding measure without those extensions, which Democrats rejected. This impasse led to the government running out of money and shutting down at 12:01 a.m. on October 1, 2025. Approximately 900,000 federal employees were furloughed, with another 700,000 working without pay, while essential services continued operating.