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US Government Shutdown: How It Ends & What Happens Afterwards | All You Need to Know

US government shuts down as Congress and President Trump fail to pass funding bill. Democrats and Republicans remain deadlocked over Medicaid and subsidies.

Published By: Sumit Kumar
Last Updated: October 1, 2025 10:14:17 IST

The US government officially shut down early Wednesday. Congress and President Donald Trump failed to break a bitter budget impasse. This marks the nation’s 15th funding lapse since 1981 and the first since the 35-day shutdown of 2018–2019.

A government shutdown happens when lawmakers cannot agree on a budget. Federal agencies must close operations, and many government services will stop until funding is restored.

What is a Government Shutdown?

A government shutdown in the US happens when Congress and the President cannot agree on a budget to fund federal operations. During a shutdown, many government offices and services close, and some workers may not get paid.

Essential services like police and national security still run, but things like national parks, passport processing, and other public programs may be delayed. The shutdown ends only when Congress passes the budget and the President signs it, so both sides must agree to restart normal government work.

Why the Shutdown Happened?

Federal agencies closed at 12:01 am Wednesday. Senate Democrats blocked a Republican stopgap measure. This bill would have kept funding flowing through November 21.

Democrats demanded the bill include an extension of health-care subsidies and roll back Medicaid cuts. Republicans refused to add these conditions.

The disagreement over Medicaid cuts in Trump’s new funding bill, called the “Big Beautiful Bill,” triggered the shutdown. Democrats want a reversal of the Medicaid cuts and an extension of tax credits on health insurance premiums. Republicans refused to change the bill.

How will it Affect Things?

Many federal agencies will stop normal operations. Some government workers may go unpaid. Services like national parks, passport processing, and public programs could face delays.

The shutdown takes the US back to seven years ago in Trump’s first term, when a 35-day shutdown occurred over border wall funding.

How does a Government Shutdown end?

According to an FAQ sheet from Representative Ami Bera, the shutdown will end when Congress passes an appropriation bill.

It reads, “To end a government shutdown, Congress needs to pass, and the President must sign appropriations bills to fund the departments and agencies that have been shut down. The President does not have the power to end a shutdown unilaterally. The funding bills follow the same legislative process as any other bill, requiring approval from both the House and Senate before the President can sign them into law.”

Both Republicans and Democrats in the House and Senate must agree on the terms. That possibility looks uncertain, which means the shutdown could last several days or weeks.

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The Daily Guardian is India’s fastest growing News channel and enjoy highest viewership and highest time spent amongst educated urban Indians.

© Copyright ITV Network Ltd 2025. All right reserved.