WASHINGTON — The United States government has entered a shutdown after Congress failed to strike a deal on funding before the September 30 deadline. The impasse pits Republican leaders, who control Capitol Hill and the White House, against Senate Democrats who are demanding concessions on healthcare and other domestic priorities.
At the heart of the fight is a familiar standoff. Republicans want a seven-week extension of government funding, with extra money for security across the legislative, executive and judicial branches. Democrats, led by Senate Minority Leader Chuck Schumer, insist that any package must include an extension of enhanced subsidies for the Affordable Care Act, along with a handful of other provisions.
With neither side budging, the shutdown began at midnight on Wednesday. Unlike past episodes, however, the Trump administration has signalled it intends to run this one differently.
Russell Vought, Director of the Office of Management and Budget, said the White House is ready to cut programmes permanently, not just furlough workers. “We have the authority to make permanent change to the bureaucracy here in government,” Vought told Fox Business. His words hint at a strategy that could deepen the pain of this shutdown compared with earlier ones.
Donald Trump is no stranger to such crises. The last major shutdown under his watch, in late 2018, dragged on for 35 days — the longest in US history.
What a shutdown means
When Congress fails to approve funding, many federal agencies close their doors until lawmakers act. Essential functions — such as national security, law enforcement and air traffic control — stay open, but often without pay for staff.
Since 1980, there have been 14 government shutdowns. Some have been partial, affecting only certain departments, but this time none of the 12 annual spending bills has been passed. The result is a full government shutdown.
Agencies are required to file contingency plans outlining which operations continue. But in an unusual move, the Trump administration is not publishing these plans centrally. Instead, they are available only on each agency’s website, making it harder for the public to see the bigger picture.
The Food and Drug Administration has warned that its ability to monitor food and medicine will be severely curtailed, though emergency responses will continue. “FDA’s ability to protect and promote public health and safety would be significantly impacted,” the Department of Health and Human Services said.
The Department of Education said most of its staff will be furloughed, but Pell Grants, student loans and major education grants will still go out. The Department of Homeland Security, by contrast, expects most staff to remain at work. Border patrol agents, immigration officers, the Secret Service and emergency managers at FEMA will continue on duty.
In the past, shutdowns have caused delays in immigration hearings, small business loans, and even tax filings needed for students applying for financial aid. In 2019, food stamp benefits were only guaranteed through February, sparking concern among families nationwide.
Who gets paid, and who doesn’t
Social Security, disability benefits and Medicare payments will continue. The same applies to jobless benefits, as long as states can process claims. The Department of Veterans Affairs says core services, including medical care, crisis lines and pension payments, will remain uninterrupted.
But for many federal employees, paycheques will stop. In March, analysts estimated that nearly 900,000 workers would face furlough without pay in a shutdown, while another 1.4 million essential workers would keep working — but unpaid until Congress resolves the deadlock.
Contract workers often fare worse, as they are not guaranteed back pay.
The Pentagon has already informed military staff that salaries are frozen until Congress passes a funding bill. Active duty members must continue working regardless. Judiciary officials have also warned that courts could run out of money within days. Judges and justices will still be paid, but clerks and support staff may not.
Travellers and tourists feel the pinch
Air traffic controllers and airport security officers are considered essential and will remain on the job. But staffing shortages have caused havoc in the past. In 2019, delays at New York’s LaGuardia airport and other hubs helped force a deal.
National parks may also be hit. In 2013, closures cost local economies an estimated $414 million over 16 days. During the 2019 shutdown, many parks stayed open without visitor services, creating safety risks and costing millions in lost revenue. Some states, including Utah and Arizona, have pledged in recent years to step in with their own money to keep popular parks open.
The economic cost
Shutdowns are not just political theatre. They hurt the economy. The Congressional Budget Office calculated that the 2018-19 standoff shaved $3 billion off economic growth that was never recovered. Lost tax revenues added billions more.
The travel industry has already raised the alarm. Geoff Freeman, head of the US Travel Association, warned in a letter to lawmakers that the shutdown will cost “$1 billion every week” in delayed flights, cancelled trips and lost spending.
Government statisticians will also be affected. The Bureau of Labor Statistics has said it will suspend its economic reports, including the October jobs report. That means the public and investors will lose a key measure of the nation’s economic health at a fragile moment.
More pain ahead?
Experts say the Trump administration may be less inclined to soften the blow this time. Molly Reynolds, a scholar at the Brookings Institution, noted that in 2019 the White House allowed the IRS to process tax refunds despite the shutdown. This time, she said, officials appear more willing to let the pain be felt.
“The OMB memo threatening wide-scale federal layoffs suggests that this time around, they might be looking to make the shutdown more painful,” Reynolds said.
For now, America’s lawmakers remain entrenched. Federal workers, travellers, students and countless families across the country are once again left to wait for Washington to act.
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