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The U.S. federal government could face a shutdown if Congress fails to pass a budget bill before the end of fiscal year 2025 on Wednesday. A shutdown would force the suspension of all non-essential federal activities.
The House of Representatives approved a budget on 19 September, funding the government until 21 November, but the Senate has yet to pass the Republican-backed bill. Both parties met with President Donald Trump on Monday, but no agreement was reached.
Democrats are demanding an extension of health insurance subsidies and the reversal of Medicaid cuts, while Republicans have refused to compromise. Vice President JD Vance warned that the U.S. is “headed to a shutdown,” while Senate Democratic Leader Chuck Schumer said the outcome depends on Republican action.
A government shutdown would halt many federal services, including non-essential operations, while essential services such as border security, hospitals, air traffic control, law enforcement, and power grid maintenance would continue. Social Security, Medicare, and Medicaid payments would remain in effect.
Past shutdowns, including the 35-day closure during Trump’s first term in 2018–2019, have disrupted government operations and caused economic losses. The Congressional Budget Office estimates the 2018–2019 shutdown reduced U.S. GDP by $11 billion, with $3 billion never recovered.
While a shutdown is disruptive, experts stress it is not the same as a sovereign default, which could trigger severe financial instability and higher borrowing costs.
U.S. President Donald Trump says Washington is not seeking an extension of its memorandum of understanding with Iran, claiming the U.S. already controls the Strait of Hormuz through its naval blockade.
Iran has said the Strait of Hormuz will remain closed until the U.S. fulfils the terms of an interim deal, including lifting the maritime blockade and sanctions and releasing Iran’s frozen assets.
Ukraine has targeted at least 20 Wildberries warehouses across Russia since 18 July, disrupting a major logistics network. Kyiv says the strikes aim to disrupt alleged military-linked supplies, while the attacks have caused billions of dollars in losses and wider economic pressure.
South Korea's presidential Blue House said on Monday it was reviewing U.S. President Donald Trump's comments on scaling back joint military drills. It added that it hoped a favourable relationship between Washington and Pyongyang could lead to meaningful talks.
Russia said its air defences downed 180 drones over the Moscow region overnight, with 620 drones reportedly targeting the area, according to Moscow Mayor Sergei Sobyanin.
At least nine people were killed, including a child, in a fire at a hotel in India's eastern city of Kolkata on Wednesday, local police said.
France is set to expel two Iranian diplomats in response to what Paris has described as a “deliberate assault” on two French embassy staff in Tehran last month, escalating tensions between the two countries.
South Korea and the United States are scaling back their annual joint military exercises following an order from U.S. President Donald Trump to substantially reduce American participation.
Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 19th of August, covering the latest developments.
The United States is pushing to establish a formal deconfliction mechanism between Israel, Türkiye and Syria after Israeli airstrikes on a Syrian airbase raised concerns about the risk of a wider regional confrontation.
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