The US government shut down early Wednesday after Congress and President Donald Trump failed to reach a budget deal. This marks the 15th shutdown since 1981 and the first since the record 35-day closure in 2018–2019.
Federal agencies started shutting their doors at 12:01 am. Senate Democrats blocked a Republican spending plan that would have funded the government through November 21. Democrats demanded the plan include an extension of health-care subsidies and a rollback of Medicaid cuts. Republicans rejected those demands.
750,000 Workers Impacted
The shutdown could furlough nearly 750,000 federal employees. Analysts estimate that this will cost approximately $400 million per day. Essential workers, including military personnel, will continue to work without pay.
The shutdown will also delay key economic data like Friday’s jobs report. Air travel will slow, research projects will halt, and many public services will stop.
Trump Defends Shutdown
President Trump heightened tensions by defending the shutdown. He linked it to his plan to cut the federal workforce by 300,000 before the year ends. “A lot of good can come down from shutdowns,” Trump said. “A lot of those affected would be Democrats.”
His comments drew sharp criticism from Democrats, who accused him of using the shutdown as a political weapon.
Democrats vs Republicans
Senate Democratic leader Chuck Schumer said Republicans are trying to “bully” his party into accepting a weak bill. “All they want to do is try to bully us. And they’re not going to succeed,” Schumer said.
Republicans pushed back. Senate Majority Leader John Thune defended the failed bill. He called it a “nonpartisan” plan and said there was “no substantive reason” for the shutdown except politics.
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$1.7 Trillion at Stake
The shutdown puts $1.7 trillion in federal agency funding on hold. This is about one-quarter of the government’s $7 trillion annual budget. Analysts warn the closure could last longer than usual. With both sides unwilling to back down, reopening the government may take weeks.
Economic Ripple Effects
The closure is already having an impact on the economy outside of Washington. Payment delays are a problem for small enterprises that depend on federal contracts. Families that rely on government assistance worry about benefit interruptions. As the processing of passports and visas slows down, travel and tourism may suffer.
Economists warn the shutdown could weaken consumer confidence and stall growth in the final quarter of 2025. Investors are also on edge, as uncertainty in Washington adds new volatility to the stock market.
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What’s Next?
The Senate is expected to hold more votes in the coming days. But the path forward is unclear. However, the future is uncertain. There are no indications that either party will compromise. Millions of Americans and hundreds of thousands of workers will still be affected by this historic closure until then.
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