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 open
- Social Security, Medicare, Medicaid: Payments continue, though delays may occur.
- Air Travel: Airports remain operational, with TSA and air traffic control functioning; minor delays possible.
- Military and National Guard: Operations continue; troops work without pay.
- Immigration and Border Agencies: ICE and CBP maintain normal operations.
- Postal Service: USPS is unaffected, funded independently.
- SNAP (Food Stamps): Benefits continue initially, but funding could run out during a prolonged shutdown.
- WIC Program: Could run out of funds within a week.
- Smithsonian Museums and National Zoo: Closed; live animal cams suspended.
- National Parks: Some may remain open without staff, leading to safety and maintenance issues.
- Federal Workers: Essential employees continue without pay; non-essential employees are furloughed but will receive back pay once the shutdown ends.
Trump 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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