The American government is shutting down because Congress failed to reach an agreement on funding legislation for the 2026 fiscal year. The shutdown began at 12:01 a.m. on October 1, 2025, after both Republican and Democratic proposals for government funding failed in the Senate. The main issues causing the impasse are partisan disagreements over federal spending levels, health care policies—especially regarding the continuation of Affordable Care Act subsidies and Medicaid cuts—and the impact of President Donald Trump's spending priorities. Democrats want to maintain health care tax credits and reverse Medicaid cuts, which Republicans oppose, leading to a deadlock. Because Congress did not pass a funding bill, the Treasury cannot legally spend money, resulting in the shutdown of many government services and furloughing of about 900,000 federal employees, with another 700,000 working without pay.
Key Causes of the Shutdown
- Failure to pass appropriations bills for the new fiscal year starting October 1.
- Democrats opposing Republican spending bills due to healthcare subsidy and Medicaid cuts concerns.
- Republicans seeking to maintain spending levels and pass a short-term funding extension.
- The Senate filibuster rules requiring 60 votes to pass funding bills, which neither side could secure.
- Political tensions amplified by President Trump's approach to federal spending and governance.
Impact of the Shutdown
- Roughly 900,000 federal employees are furloughed; 700,000 continue working without pay.
- Essential services like Medicare and TSA operations continue, but agencies like the NIH, CDC, and WIC face suspensions.
- Services including food inspections and IRS helplines are affected.
- Economic impact includes lost government activity and delayed payments.
The shutdown reflects broader political struggles in the U.S. government over budget priorities and health care policy within a highly polarized context.
