US government shutdown: What it means and how it could affect operations

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US President Donald Trump said that the US is likely heading toward its 15th government shutdown since 1981, warning that his administration could implement long-term changes during such a scenario, according to Reuters.

“We'll probably have a shutdown,” he told reporters at the White House. Trump said Democrats were taking a risk in their negotiations over the shutdown, adding that the Trump administration could cut the benefits it pays out.

When asked how many federal workers might be affected, Trump responded, “Well, we may do a lot.” He blamed Democrats for the potential shutdown, accusing them of wanting to increase illegal immigration into the U.S.

Recently, White House budget chief Russ Vought circulated a memo outlining plans to use the shutdown as an opportunity to reduce federal spending and cut the number of federal employees.

JD Vance comments on the shutdown

Vice President JD Vance said on Monday that a shutdown seems likely, noting that no agreement had been reached after a meeting between Trump and Democratic leaders.

“I think we’re headed for a shutdown because the Democrats won’t do the right thing. I hope they change their mind, but we’ll see,” Vance told reporters outside the White House, according to CNN.

What happens during a government shutdown?

A government shutdown can furlough hundreds of thousands of federal employees or require them to work without pay. Essential services, such as Social Security, military operations, immigration enforcement, and air traffic control, continue, but many other services may be delayed or disrupted.

Food safety inspections, immigration hearings, and air travel could be affected. While the wider economy may not feel the impact immediately, a prolonged shutdown can slow economic growth, disrupt markets, and reduce public confidence.

In 2018, a standoff between Trump and Democrats led to a 34-day shutdown affecting around 800,000 federal workers. A previous shutdown in 2013 lasted 16 days due to disagreements over the new fiscal year budget.

What is a government shutdown?

A government shutdown happens when Congress fails to approve funding for some or all federal agencies. If lawmakers do not pass appropriations or a short-term funding measure by midnight on September 30, affected agencies must stop non‑essential operations until funding is restored.

Essential services such as national security, air traffic control and Social Security payments, generally continue, but many programs and workers can be furloughed or forced to work without pay.

US Shutdown FAQs:

When did the U.S. government last shutdown?

Since the 1977 fiscal year, the U.S. has experienced 20 funding gaps, making Wednesday’s closure the 21st. The last shutdown in December 2018, during Trump’s first term, lasted 35 days, the longest in history. Federal workers struggled, with some relying on food banks and essential staff calling in sick due to unaffordable childcare or travel costs. The Congressional Budget Office estimated about $3 billion in lost economic activity. Ahead of the current shutdown, agencies have been slow to issue contingency plans, though some have outlined potential impacts.

What does a US government shut down mean?

A federal government shutdown freezes all non-essential functions, affecting social security, air travel, and national park access. Without congressional approval for funding, agencies halt operations, leaving workers unpaid and unable to report to work.

Why did Donald Trump shut down the government?

The US government entered a shutdown after midnight Wednesday as President Donald Trump and Congress failed to resolve a budget deadlock over Democratic health care demands. This is the first federal shutdown in nearly seven years and will halt operations across multiple departments, affecting hundreds of thousands of employees. Trump blamed Democrats, warning they and their supporters could face consequences, including cuts to progressive programmes and public-sector layoffs. “So we'd be laying off a lot of people that are going to be very affected. And they're Democrats, they're going to be Democrats,” he said. Government operations halted at 12:01 am after a failed Senate attempt to approve a short-term funding resolution.