U.S. government shuts down after funding talks collapse

1 October 2025, 01:58 PM
World
U.S. faces $400M daily cost of shutdown (Photo: REUTERS/Al Drago)

U.S. faces $400M daily cost of shutdown (Photo: REUTERS/Al Drago)

Author: Demian Shevko

The U.S. government shut down on Wednesday, Oct. 1, after Congress and the White House failed to agree on a funding deal, Reuters reported.

t marks the 15th government shutdown since 1981.

According to preliminary estimates, the shutdown will delay the release of the September jobs report, slow air travel, halt scientific research, suspend military pay, and temporarily furlough about 750,000 federal employees. The shutdown is expected to cost the government roughly $400 million per day.

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President Donald Trump warned congressional Democrats that the shutdown could pave the way for “irreversible” decisions on further cuts to federal programs.

The shutdown began after the Senate rejected a short-term spending bill that would have kept the government open until Nov. 21. Democrats opposed the measure because Republicans refused to extend healthcare benefits for 24 million Americans set to expire at the end of the year. Republicans insisted the issue should be dealt with separately.

In total, $1.7 trillion is at stake, covering about one-quarter of the $7 trillion federal budget.

Independent analysts warn this shutdown could drag on longer than previous ones.

Republicans currently control both chambers of Congress, but passing a spending bill requires 60 votes in the Senate — meaning at least seven Democrats.

The longest shutdown in U.S. history lasted 35 days from December 2018 to January 2019, during Trump’s first term, over funding for a border wall with Mexico.

Trump first warned on Sept. 20 of a potential shutdown due to lack of compromise between Republicans and Democrats. On Sept. 29, Vice President J.D. Vance cautioned that the government was at risk of shutting down following a failed meeting between Trump and Democratic leaders.

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