Explainer: Understanding the U.S. government shutdown and its impact

U.S. Capitol dome, Washington, D.C., U.S., 1 October, 2025.
Reuters/AnewZ

The U.S. government has shut down after Congress failed to approve funding. Non-essential services are on hold, thousands of federal workers are left unpaid, and both parties blame each other for the deadlock.

What is a government shutdown?

U.S. Congress is responsible for approving funding for 438 government agencies before 1 October, the start of the new budget year.

When the deadline to agree on the new budget plan is missed, lawmakers often pass short-term bills to keep the government open while continuing work on a full budget.

Democrats and Republicans frequently disagree on how the money should be spent, and talks often go down to the last minute. If no agreement is reached by the deadline, the government shuts down.

What happens now?

If no deal is reached, non-essential government work comes to a halt. Republicans blame the Democrats for blocking a “fair” bill, while Democrats say they were left out of talks and criticise the bill for excluding key healthcare programmes.

These political disputes have intensified under President Donald Trump, who has cut government agencies, reduced staff, and withheld funds approved by Congress.

Who is affected?

The consequences of a complete shutdown affects the entire country. Non-essential federal operations are suspended, and while essential workers remain on the job, they won’t receive pay.

Thousands more, including those in science, administration, and support roles, are on unpaid leave.

This week, more than 150,000 federal workers are also set to leave after accepting a buyout, the largest exit in 80 years.

Key services such as food aid, preschool programmes, student loan processing, food inspections, and national parks are now on hold. Airlines have warned of possible delays due to reduced staffing.

Republicans and Democrats trade blame 

Democrats criticise Republicans for not including additional healthcare subsidies in the spending bill, while President Trump blamed the Democrats, warning that the shutdown could lead to what he described as “irreversible” actions.

Though he didn’t elaborate, Trump has recently discussed downsizing the federal workforce, a move that could materialize as the shutdown continues.

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