US Government Comes to a Standstill: Congress Fails to Reach Funding Agreement
The federal government officially shut down at 12:01 AM on October 1, 2025. This occurred after Senate Republicans and Democrats failed to pass funding bills before the deadline. This marks the first shutdown since 2018.
During the shutdown, approximately 750,000 federal employees face furloughs, as reported by the Congressional Budget Office. Essential services will continue to operate. These include:
- Air traffic control
- TSA security
- Border protection
However, many government agencies have suspended non-essential functions.
The Trump administration has escalated tensions by freezing $18 billion in New York infrastructure projects and $8 billion in climate programs across 16 states. Vice President JD Vance warned that layoffs could begin if the shutdown continues. The deadlock continues between both parties over healthcare spending and government funding priorities.
The last major shutdown in 2018-2019 lasted 35 days and cost an estimated $3 billion in lost GDP.
Source: CBS News