The US government officially shut down early Wednesday after Congress and President Donald Trump failed to break a bitter budget impasse. This marks the 15th funding lapse since 1981 and the first since the record 35-day shutdown of 2018&ndash;2019.
Federal agencies began closing operations at 12:01 am after Senate Democrats blocked a Republican stopgap measure. Democrats demanded extensions of health-care subsidies and rollbacks of Medicaid cuts, which Republicans refused to include.
The shutdown is expected to furlough around 750,000 federal employees, costing roughly $400 million per day, while essential workers, including troops, will continue without pay. Services affected include economic data releases, air travel, scientific research, and other federal operations.
President Trump warned that the shutdown could lead to &ldquo;irreversible&rdquo; cuts to programs and jobs as part of plans to reduce the federal workforce by 300,000 by year-end. Senate Democratic leader Chuck Schumer accused Republicans of trying to &ldquo;bully&rdquo; Democrats, while Senate Majority Leader John Thune blamed Democrats for holding the government hostage.
With $1.7 trillion in agency funding at stake, analysts warn the shutdown could extend longer than previous closures due to deep political polarisation. No clear solution is in sight as both parties remain entrenched.

Congress deadlock triggers shutdown, furloughs 750,000 employees, halts key services

US Government Shutdown Hits Federal Agencies

Congress deadlock triggers shutdown, furloughs 750,000 employees, halts key services

October 1, 2025 | 15:29 IST