why is there a government shutdown 2025

The U.S. government shutdown on October 1, 2025, occurred because Congress failed to pass appropriations legislation to fund the government for the 2026 fiscal year. Key reasons include partisan disagreements between Republicans and Democrats over federal spending levels, health care subsidies, Medicaid cuts, and foreign aid rescissions. Democratic lawmakers aimed to protect health care subsidies under the Affordable Care Act and reverse Medicaid cuts, while Republicans pushed for budget cuts and opposed extending some health care tax credits. Both parties rejected each other's stopgap funding proposals, leading to the shutdown at midnight on October 1. This shutdown is the 21st in modern U.S. history and the third shutdown under President Donald Trump's administration, furloughing about 900,000 federal employees and leaving another 700,000 working without pay. Essential services continue, but many agencies have suspended operations or reduced services until a funding agreement is reached.