The U.S. government has shut down after the Trump administration and the Democrats were unable to reach an agreement regarding funding.
The federal government shut down at midnight after a deadlocked Congress failed to reach a deal on funding, with Republicans and Democrats at odds over enhanced Obamacare subsidies.
If the two sides are not able to reach an agreement, the shutdown could continue indefinitely, in which case, here’s what to expect.
What to expect:
On October 1, 2025, the U.S. federal government officially shut down after Congress failed to pass funding legislation for the 2026 fiscal year. This marks the first full federal government shutdown since 2018–2019. The shutdown is the result of ongoing disagreements in Congress over spending priorities, foreign aid, and healthcare-related subsidies.
READ: Trump to meet lawmakers before US government shutdown (September 29, 2025)
Government services: What’s open and what’s not
During a shutdown, federal agencies follow contingency plans that divide operations into “essential” and “non-essential” services. Essential services continue, while many others are suspended or delayed.
Services that continue operating include:
- Military and national defense
- Social Security and Medicare benefit payments
- Air traffic control and TSA security screening
- Federal law enforcement and border security
Services that are suspended or limited include:
- National parks and museums (many have closed)
- Processing of passports, visas, permits, and licenses
- Many regulatory and administrative reviews
- Some health research and public health monitoring programs
For example, the Department of Health and Human Services (HHS) has announced that 41% of its workforce will be furloughed. This includes many employees at the CDC and NIH, which reduces the federal capacity for disease tracking and clinical trials.
Impact on federal employees
Hundreds of thousands of federal workers are affected. Those in “non-essential” roles are furloughed, meaning they are not working and not getting paid. Others, such as air traffic controllers, TSA agents, and federal law enforcement officers, are considered “essential” and must continue working without pay for now.
Under the Government Employee Fair Treatment Act of 2019, furloughed and unpaid federal workers are guaranteed back pay once the shutdown ends. However, federal contractors are not guaranteed any compensation unless Congress passes a specific bill to cover those costs.
Air travel and transportation
The Federal Aviation Administration (FAA) is furloughing around 11,000 employees, which may affect operations like safety inspections, pilot training, and aircraft certification. While core air traffic operations remain functional, reduced staffing could lead to longer wait times, delayed flights, and slower service at airports across the country.
Public health and safety
While emergency health responses remain in place, many long-term research projects and disease monitoring activities at agencies like the CDC and NIH are paused or scaled back. Routine food and drug safety inspections by the FDA are limited, though high-risk operations continue.
If the shutdown continues for more than a few weeks, some programs like WIC (Women, Infants, and Children) may face funding shortfalls, potentially affecting food support for low-income families.
Economic impact
Economists estimate the shutdown could reduce U.S. GDP growth by 0.1 to 0.2 percentage points per week. Small businesses relying on federal permits, contracts, or services may experience disruptions. Market confidence could be shaken if the shutdown drags on, especially if it affects debt or credit markets.
The longer the shutdown continues, the more widespread the effects will be. Essential services remain active, but many Americans, including federal employees, travelers, and families relying on government programs, are already feeling the impact. Pressure is growing on lawmakers to reach a deal and restore full government operations.