October 22, 2025
The federal government of the United States entered a shutdown at 12:01 a.m. Eastern Daylight Time on October 1, 2025, after Congress failed to pass appropriations legislation to fund federal agencies for the 2026 fiscal year. The shutdown began when lawmakers could not agree on a temporary funding measure, leaving many departments without the legal authority to spend money.
Each year, Congress must approve 12 appropriations bills to finance government operations. When these bills are not passed, the Antideficiency Act prohibits agencies from spending money without authorization. This time, disagreements over healthcare subsidies, proposed cuts to Medicaid, and broader budget priorities prevented lawmakers from reaching a deal.
As a result, most federal agencies have been forced to suspend non-essential operations. Hundreds of thousands of federal employees are on unpaid furlough, while essential workers such as military personnel and air-traffic controllers continue to work without pay until funding is restored. Key programs like Social Security and Medicare remain operational, but many services, including national parks, grant offices, and regulatory bodies, are partially or fully closed.
Economists estimate that each week of the shutdown could reduce U.S. GDP growth by about 0.1 percentage points, equating to roughly seven billion dollars in lost economic output per week. Prolonged closures could slow federal contract work, delay payments to vendors, and weaken public confidence in government institutions.
To end the shutdown, Congress and the President must agree on either a temporary spending resolution or a full-year funding package. Until then, government services will remain disrupted, and federal employees will face uncertainty over pay and job stability.
