U.S. government shuts down

President Donald Trump and congressional leaders were unable to strike a deal before the Wednesday night deadline to keep federal programs and services running, pushing the government into a new cycle of uncertainty.

The shutdown became inevitable after lawmakers on Tuesday rejected two temporary funding packages—one so-called “clean” bill proposed by Republicans, and another reflecting Democratic priorities. In recent days, both parties had engaged in a blame game rather than serious negotiations.

Senate Majority Leader John Thune (Republican) told reporters after the vote:

“Senate Democrats decided to shut down the government over a nonpartisan, neutral budget bill. That’s right—a nonpartisan bill. They said ‘no’ because far-left interest groups and left-wing Democrats wanted to pick a fight with the President.”

Senate Minority Leader Chuck Schumer (Democrat) responded:

“Republicans are plunging America into a shutdown—rejecting bipartisan talks, pushing a partisan bill, and worst of all, jeopardizing American healthcare. They need to sit down with Democrats to craft a bill both parties can support.”

The Trump administration is now implementing shutdown measures across government agencies, which are expected to result in widespread furloughs and possible layoffs in multiple departments.

This shutdown is seen as different from previous ones, as the administration has threatened mass firings of federal employees and may use the budget freeze as a means to downsize government. Trump escalated the crisis by warning he would cut funding for agencies critical to Democrats and eliminate programs relied upon by his political opponents. Speaking to reporters, he added: “We’re going to fire more people. They’ll be Democrats.”

During the shutdown, federal employees will not be paid, while Trump and members of Congress will continue to receive their salaries.

The Congressional Budget Office (CBO) said roughly 750,000 federal workers will be furloughed without pay each day, while essential workers—including TSA officers, air traffic controllers, federal law enforcement agents, and members of the military—will be forced to work without pay. The CBO estimated that retroactive compensation for furloughed employees would cost taxpayers about $400 million.

Economic shock ahead

Analysts warn that the U.S. economy may feel the ripple effects within days.
The government’s monthly jobs report, due soon, could be delayed—or possibly not released at all.

While financial markets have often remained “unmoved” by previous shutdowns, this one may be different, as there are no signs of broader bipartisan negotiations.

Across federal agencies, Trump’s Office of Management and Budget has instructed departments to prepare not only for routine furloughs but also for mass layoffs, aligning with the administration’s broader agenda to shrink the federal government.

Background: Previous U.S. Government Shutdowns

• 2018–2019: The last shutdown, the longest in more than 40 years, began on December 22, 2018, and lasted until January 25, 2019—35 days in total—over Trump’s demand for border wall funding. It cost the U.S. economy an estimated $3 billion in GDP losses.
• 1995: Under President Bill Clinton, a 21-day shutdown occurred when Republicans in Congress pushed for major spending cuts, including to healthcare programs.
• 2013: During President Barack Obama’s administration, the government shut down for 16 days over disputes concerning the Affordable Care Act (“Obamacare”).
• 1980s: President Ronald Reagan oversaw eight separate shutdowns, though all were short—the longest lasting only three days.