As of 12:01 a.m. EDT on October 1, 2025, the federal government of the United States has officially shut down after Congress failed to agree on legislation to fund government operations.
What led to the shutdown
The shutdown was precipitated by a partisan stalemate in the Senate, where neither a Republican-backed funding measure nor a Democratic alternative could muster the 60 votes needed to overcome a filibuster. Republicans had pushed for a “clean” continuing resolution (i.e., without major policy changes) to fund the government through November 21, but Democrats insisted on preserving health care subsidies and restoring cuts to Medicaid.
Scale of the furloughs and affected agencies
Roughly 900,000 federal employees are estimated to be furloughed or working without pay, while another 700,000 are continuing work under “essential services” status. The Department of Health and Human Services anticipates that 41% of its staff will be furloughed. The Centers for Disease Control and Prevention (CDC) expects to furlough approximately 64% of its workforce, and the National Institutes of Health (NIH) may furlough up to 75% of its personnel.
Key departments such as Education, Labor, Commerce, and State have halted non-essential operations, though programs such as Social Security, Medicare, and national defense continue under legal exemptions.
Economic and financial risks
A White House memo projects that the U.S. economy could lose $15 billion in GDP every week the shutdown persists, with a possible addition of 43,000 unemployed persons if it lasts a month. The memo further warns of a $30 billion hit to consumer spending, half of which would stem from the loss of income among federal employees.
Meanwhile, European rating agency Scope cautions that the shutdown could further damage the U.S. credit outlook, compounding the challenges of political polarization and debt trajectory.
The U.S. judiciary has announced it can continue operations and pay staff only through October 17. Beyond that, only judges and Supreme Court justices are constitutionally guaranteed pay; many court employees may face furloughs or reduced schedules.
Political maneuvers and frozen funding
In a dramatic turn, the Trump administration froze $26 billion intended for programs in Democratic-leaning states; this includes $18 billion for New York transit projects and $8 billion for green energy initiatives across several states. The administration has also threatened or begun using the shutdown to push for permanent cuts to certain federal agencies.
Vice President J.D. Vance warned of possible permanent federal layoffs if the shutdown endures. The administration has adopted a more aggressive posture than past shutdowns, signaling that some programs may not simply be paused but permanently reduced or eliminated.
Democrats counter that Republicans, now controlling both the House and Senate, bear responsibility for the standoff. They accuse the administration of politicizing essential services and using the shutdown as leverage.
