The United States federal government has officially shut down after a bitter stalemate in Congress, with Republicans and Democrats failing to agree on a funding measure to keep agencies running. It is the country’s first shutdown since 2019.
At the centre of the deadlock are enhanced Obamacare subsidies. Republicans are pushing for a short-term seven-week funding extension without changes, while Democrats are refusing to back any stopgap bill unless the subsidies—due to expire at the end of the year—are guaranteed.
President Donald Trump has seized on the crisis, signalling he could use the shutdown to permanently scale back the federal government. His budget office has threatened cuts to programmes traditionally favoured by Democrats, intensifying pressure on the opposition to give ground.
The Senate is set to vote again on the GOP plan Wednesday morning, but Democrats led by Chuck Schumer say they will not yield. Schumer insists Americans will blame Republicans for the shutdown because of the looming health care cost cliff, warning that millions could face 75% premium increases in 2026 if subsidies are scrapped.
Some Democrats have already broken ranks. Catherine Cortez Masto, Angus King, and John Fetterman voted with Republicans in the final pre-shutdown ballot, while others are under pressure to defect as the impasse drags on. GOP leaders say more Democrats are “uncomfortable” with prolonging the shutdown and hint further defections are likely.
Fallout for Americans
The shutdown could furlough 750,000 federal workers, costing the economy an estimated $400 million a day. Essential workers such as air traffic controllers and TSA agents will continue to work without pay until funding resumes, raising fears of flight disruptions and longer security queues.
Social Security, Medicare and Medicaid benefits will continue, while veterans’ health care and crisis services remain funded. But programmes such as the GI Bill hotline, transition assistance for service members, and cemetery maintenance will be suspended.
Uncertainty also surrounds public access to more than 400 national park sites, although Smithsonian museums and the National Zoo will stay open at least until October 6 using leftover funds.
Democrats accuse Trump of seeking to dismantle vital services under cover of the shutdown. Senator Sheldon Whitehouse called the president “a madman in charge” and warned of “permanent damage” if the standoff continues.
Meanwhile, Republican leaders say Democrats are gambling with working-class livelihoods by refusing a temporary funding deal. Senator Josh Hawley said: “You’re asking millions of people to pay a really high price. I don’t know how it ends. They don’t know how it ends.”
With neither side willing to shoulder the blame, the standoff shows no signs of resolution, leaving the fate of the government—and millions of Americans—hanging in the balance.
