The United States federal government has officially shut down after lawmakers failed to reach a funding agreement before the September 30 deadline.
According to CNN report, despite Republicans controlling both Capitol Hill and the White House, the party needed at least seven Senate Democrats to secure passage of a spending package.
Senate Minority Leader Chuck Schumer demanded that any deal include an extension of Affordable Care Act premium subsidies, while GOP leaders pushed for a short-term seven-week plan with added funds for security across government branches.
With no compromise reached, the shutdown took effect at midnight on October 1.
The White House, led by President Donald Trump, has signaled it will take a tougher approach than in past shutdowns.
Officials say the administration could permanently cut jobs and programs, not just temporarily furlough workers.
What the shutdown means
Federal agencies are required to submit contingency plans detailing which functions remain active.
Essential services tied to public safety and national security, such as border security, immigration enforcement, and defense operations, will continue.
However, many workers will either be furloughed or forced to work without pay.
The Food and Drug Administration will scale back routine inspections, the Department of Education will furlough most staff, and several federal lending programs could face delays.
On the other hand, Social Security, Medicare, and Medicaid payments will continue uninterrupted. Unemployment benefits will also be processed, provided state agencies maintain funding.
National parks face mixed outcomes. In past shutdowns, some states kept their parks open using local funds.
Without federal support, visitor services may be suspended, and millions in tourism revenue could be lost.
Air travel and workers hit hard
Air traffic controllers and TSA agents will keep working but without pay.
Union leaders warn that staffing shortages could disrupt flights, just as seen in the 2019 shutdown that forced temporary closures at major airports.
Federal workers remain among the hardest hit. Nearly 900,000 employees could be furloughed without pay, while others continue working with delayed salaries.
Contractors, unlike federal workers, are not guaranteed back pay once the crisis ends.
Wider impact on the economy
Shutdowns delay federal spending and weaken consumer confidence. The 2018–2019 shutdown cost the economy $3 billion in lost growth, according to the Congressional Budget Office.
The Bureau of Labor Statistics will suspend its monthly jobs report, leaving economists without key data to track growth.
The travel industry is also bracing for losses, with the US Travel Association warning of a $1 billion weekly hit to America’s tourism sector.
Political stakes
President Trump is no stranger to shutdown battles. The 2018–2019 closure lasted 35 days, the longest in US history.
This time, however, his administration appears ready to use the shutdown as leverage to reshape the federal workforce.
“The OMB memo threatening wide-scale layoffs shows they want this shutdown to be painful,” warned Molly Reynolds of the Brookings Institution.
As millions of Americans brace for delays, missed paychecks, and disrupted services, pressure is mounting on Congress to strike a deal.
But with both parties refusing to shift their positions, there is no clear end in sight.
Post Views: 18
