The US federal government shut down at 12:01 a.m. on Wednesday after both Republican and Democratic proposals for continued government funding failed in the Senate at the eleventh hour.
The government ran out of money after two measures failed: a Democratic-backed bill that would have extended health care subsidies under the Affordable Care Act (ACA) and reversed cuts to Medicaid, and a GOP-backed stopgap funding measure that would have funded the government for seven weeks.
Following the two failed votes, White House Office of Management and Budget (OMB) Director Russell Vought told federal agencies they “should now execute their plans for an orderly shutdown.” Senate Minority Leader Chuck Schumer urged Republicans to return to the negotiating table, stating, “We want to sit down and negotiate, but the Republicans can’t do it in their partisan way, where they just say it’s our way or the highway.” The Senate is expected to vote again on Wednesday, likely on the same two failed measures.
This follows a meeting between President Donald Trump and a bipartisan group of congressional leaders on Monday afternoon to try and avert the looming shutdown. Vice President JD Vance said after the meeting: “I think we’re headed to a shutdown because the Democrats won’t do the right thing.” Congressional Democrats demanded overhauls to Medicaid cuts and extensions to health care tax credits, which Republicans refused to accept, leading them to withhold the votes needed for a short-term funding agreement.
This marks the 21st funding gap since the 1977 fiscal year. The last one, which began in December 2018 during Trump’s first term, was the longest in history at 35 days. The Congressional Budget Office (CBO) estimated that approximately $3 billion in U.S. economic activity was permanently lost during that shutdown.
Potential Impacts of the Shutdown
1. Federal Employees and Military Pay:
- As many as 4 million federal employees, including some service members, could go without a paycheck.
- Hundreds of thousands of “essential workers”—such as airport security officers (58,488 TSA employees), air traffic controllers (over 13,000), and certain military members—will be required to work without pay.
- Roughly 2 million active-duty troops, including National Guard members deployed to U.S. cities, could be forced to work without pay.
- Federal contractors (e.g., janitors, security guards) are not required to work and are not guaranteed back pay.
- Members of Congress will continue to receive their $174,000 annual salaries.
- Financial stress is a concern: 25% of military families experience food insecurity, and about 25% report having less than $500 in savings.
2. Department of Defense (DoD) Operations:
- The Pentagon’s contingency plan mandates that all active-duty troops continue working.
- Priorities include securing the U.S. southern border and building Trump’s U.S. missile shield, known as “Golden Dome.”
- Middle East operations, depot maintenance, shipbuilding, and critical munitions are also prioritized.
- Most military personnel were scheduled to be paid on Oct. 1, but subsequent paychecks depend on negotiations. This could be the first time in decades DoD personnel go without pay.
3. Public Services and Health Safety:
- Social Security, Medicare, and Medicaid distribution will continue, but with potential slowdowns.
- The FDA’s Animal Drugs and Foods Program will end pre-market safety reviews for novel animal food ingredients, impacting the ability to ensure that the meat, milk, and eggs of livestock are safe for consumption.
- National parks and Smithsonian museums typically close within a few days.
- Civil litigation at the Department of Justice (DOJ) may be “postponed.” The 2018-2019 shutdown resulted in the cancellation of up to 60,000 immigration hearings.
- At the Department of Health and Human Services (HHS), about 59% of employees will be retained, with approximately 12,000 working without pay.
- The Centers for Disease Control and Prevention (CDC) will retain only 36% of employees (15% without pay).
- The Food and Drug Administration (FDA) will retain 86% (19% without pay).
- The National Institutes of Health (NIH) will retain about 24%, almost all without pay.
4. Travel and Transportation:
- TSA officers and 13,000+ air traffic controllers will work without pay.
- The 2018-2019 shutdown saw increased sick calls among TSA officers and air traffic controllers due to financial hardship, leading to closed security lines, increased wait times, and flight delays (e.g., a groundstop at LaGuardia Airport).
5. Threats and Back Pay:
- OMB Director Russ Vought has threatened mass firings (Reductions in Force – RIFs), which Democrats label an intimidation tactic.
- Under law, all federal employees are guaranteed back pay once government funding is restored.
