The United States began its first government shutdown in six years on Tuesday, as Congress failed to reach an agreement on federal funding and Democrats clashed with President Donald Trump over last-minute proposals.
Senators rejected a final attempt to approve a temporary funding patch, leaving the government at risk of closure when funding expires at midnight.
Despite frantic negotiations, no breakthrough has emerged between Republicans and Democrats to fund the government beyond Tuesday, which marks the end of the fiscal year.
“We'll probably have a shutdown,” the Republican president told reporters earlier in the Oval Office, acknowledging the growing likelihood of a closure.
What is a shutdown?A shutdown occurs when Congress fails to pass annual spending bills. Under the Antideficiency Act, federal agencies cannot spend money without congressional approval, forcing many operations to halt. Non-essential employees face furloughs, while essential workers continue without pay. During Trump’s 35-day shutdown in 2018–2019, 340,000 employees were furloughed.
The Trump administration appears prepared to take a tougher stance, with an internal memo suggesting agencies may issue “reduction-in-force” notices, potentially triggering permanent layoffs for programs lacking funding beyond the usual temporary furloughs.
Economists warn of economic ripple effects. The 2018–2019 shutdown cost $11 billion, with $3 billion permanently lost. While federal workers are guaranteed back pay under a 2019 law, missed paychecks could strain households. Prolonged shutdowns may reduce economic growth by 0.15–0.2 percentage points per week, according to Goldman Sachs Research.
What stays openTrump previously oversaw three government shutdowns during his first term, the longest lasting 36 days over border wall funding disputes, costing the economy $11 billion. Historically, presidents such as Ronald Reagan experienced multiple shutdowns, though each was relatively brief compared to Trump-era closures.
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