The United States government has entered a shutdown, the 15th since 1981, after lawmakers in Congress failed to agree on a funding deal.
The shutdown, which began Wednesday, is expected to furlough around 750,000 federal employees and cost the economy about $400 million each day. Essential services will be disrupted, including air travel, scientific research, military pay, and thousands of federal programs. One immediate effect is the suspension of the September jobs report, which investors and policymakers closely follow.
At the center of the standoff is $1.7 trillion in funding for federal agencies, about a quarter of Washington’s total $7 trillion budget. The rest is tied up in healthcare, retirement programs, and interest payments on the nation’s $37.5 trillion debt.
Former President Donald Trump has linked the shutdown to his broader plan to shrink government spending. His budget director Russell Vought recently warned that the standoff could lead to permanent layoffs of federal workers. Reports suggest Trump wants to push out as many as 300,000 government employees by December as part of his restructuring agenda.
The immediate dispute came when Senate Democrats rejected a short-term bill that would have extended government funding until November 21. They opposed the measure because it excluded healthcare subsidies that millions of Americans depend on. Republicans argued the healthcare issue should be addressed separately, accusing Democrats of blocking progress for political reasons.
“This is politics. There isn’t any substantive reason why there ought to be a government shutdown,” Senate Majority Leader John Thune said. Democratic leader Chuck Schumer responded that Republicans were trying to “bully” their way into an agreement.
The United States has faced shutdowns before, with the longest lasting 35 days during Trump’s first term over border wall funding. But analysts warn that today’s climate is even more polarized. Political violence, including the recent assassination of activist Charlie Kirk, and the influence of extreme factions in both parties have made compromise harder.
Adding to tensions, Trump recently shared a deepfake video mocking Democratic leaders Chuck Schumer and Hakeem Jeffries, which Schumer condemned as “childish” and “unserious” during a national crisis.
Experts say the longer the shutdown continues, the greater the economic and social strain will be, leaving millions of Americans uncertain about their jobs, healthcare, and basic services.
