With just hours left before the midnight deadline, the United States is staring at a government shutdown that could ripple across federal agencies, services, and the broader economy. A shutdown occurs when Congress fails to pass the annual spending bills needed to keep the government running.
This year’s crisis is fuelled by a fierce clash between President Donald Trump and Democrats over healthcare subsidies and federal spending priorities. Vice President JD Vance admitted the grim outlook, saying, “I think we’re headed to a shutdown.” If no agreement is reached, millions of Americans will feel the impact, from federal employees missing paychecks to disrupted public services and delayed economic activity. Here is what to know about the looming shutdown.
Why is a shutdown possible?
The fiscal year in the US ends on September 30. Congress must pass 12 appropriations bills or temporary extensions to keep the government funded. While some departments, such as Defense and Homeland Security, have secured funding, most others will lose money once the clock runs out. Democrats want to extend subsidies under the Affordable Care Act, which lower health premiums for around 24 million Americans. Republicans insist healthcare should not be tied to funding and are pushing a stopgap bill through November 21. Neither side has accepted the other’s plan, leaving a stalemate.
What happens during a shutdown?
If funding lapses, federal agencies activate contingency plans. Services are divided into essential and non-essential categories. Essential workers, including active-duty military, TSA agents, air traffic controllers, and federal law enforcement officers, must report to work but without pay until funding resumes. Non-essential employees are furloughed. While a 2019 law guarantees back pay after the government reopens, the Trump administration has warned of possible permanent layoffs, adding fresh uncertainty.
Which services are affected?
Air travel could be strained as TSA staff and controllers work without pay, risking protests or sick-outs. National parks may close or operate with skeleton staff, as seen in past shutdowns. Federal courts, business loans, and certain grants will stall. Social Security, Medicare, and Medicaid will continue to issue payments, though service delays may occur due to reduced staff. The Postal Service will remain unaffected since it is self-funded.
How much funding is at stake?
The deadlock concerns $1.7 trillion in discretionary spending, about a quarter of the $7 trillion federal budget. The remainder is tied to entitlement programs and debt servicing, which are unaffected. The shutdown will add to economic uncertainty as businesses dependent on federal contracts face delays and consumer confidence dips.
What do past shutdowns show?
Since 1981, the US has endured 14 partial shutdowns. The longest, in 2018–2019, lasted 35 days under Trump’s first term, affecting 800,000 workers and nine departments. That episode showed how shutdowns can disrupt daily life, delay paychecks, and spark public anger.
Why is this year different?
Unlike past disputes, this standoff centers on healthcare subsidies that Democrats view as critical for their base. Republicans accuse them of using the threat of a shutdown to force unrelated policy wins. Senate Majority Leader John Thune urged Democrats to relent, saying, “We can have that conversation. But before we do, release the hostage. Set the American people free. Keep the government open.” With the 2026 midterms in sight, both sides are digging in, and Trump has shown little interest in compromise.
If Congress cannot strike a deal, Americans could wake up tomorrow to a partial federal shutdown, leaving vital services strained and political tensions at their peak.
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