U.S Government Shuts Down After Budget Impasse
On October 1, 2025, at 12:01a.m. ET, the United States government officially shut down after Congress failed to pass a new funding bill. The missed deadline marked the beginning of the 2026 fiscal year, and without an official budget, many federal agencies were forced to shut down.
The U.S. federal government runs on an annual budget bill that sets how much money each department can spend. However, when Congress cannot agree on the amount or at least a temporary spending bill, government operations have to temporarily shut down. This is what happened after both the House of Representatives and Senate failed to compromise and pass a bill.
The effect of this shutdown was immediate. About 750,000 federal employees were placed on unpaid leave, while thousands of other employees had to continue working even though they were not being paid (e.g., air traffic controllers, military personnel, and even TSA agents). The IRS dismissed 34,000 employees, which is about 46% of their workforce. The Department of Health and Human Services also announced that they would release 41% of their staff.
For many people, this could feel very distant but it is a very real issue. If this standoff continues, permanent job cuts could happen. Federal financial aid offices have delayed responses, passport applications take longer, and programs that rely on federal grants and funding can no longer operate regularly. Many government-run educational websites, research databases, and museum resources are already offline or limited.
This shutdown marks a very uncertain time within the U.S. Until Congress passes a funding bill and the President signs it, thousands of workers, countless programs, and even the daily lives of ordinary Americans remain on hold.