US govt shutdown: What shutdown means for workers & citizens as Senate fails to pass funding bill

US govt shutdown: What shutdown means for workers & citizens as Senate fails to pass funding bill

Without congressional action, federal funding will expire at 12:01 AM ET (9:31 AM IST) on Wednesday, October 1, 2025, triggering the first shutdown in almost seven years

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Funding expires October 1: What the US government shutdown means for workers and citizensFunding expires October 1: What the US government shutdown means for workers and citizens
Sonali
  • Oct 1, 2025,
  • Updated Oct 1, 2025 9:27 AM IST

The US government is on the brink of a formal shutdown as last-ditch efforts to pass a Republican-crafted short-term funding bill failed. The Senate vote on Tuesday evening was 55 to 45, short of the 60 votes required to pass the measure, Reuters reported.

Without congressional action, federal funding will expire at 12:01 AM ET (9:31 AM IST) on Wednesday, October 1, 2025, triggering the first shutdown in almost seven years.

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Senate Democrats have made it clear that they will block a Republican stopgap package unless it addresses their priorities, including extensions for expiring healthcare benefits. Bloomberg reported that the standoff reflects deeper partisan divisions, with neither party willing to compromise even as the federal funding deadline looms.

The White House Budget Office has confirmed that the expiration of funding will trigger a formal shutdown. This means essential workers, including military personnel, will continue to work without pay, while non-essential federal employees may be furloughed.

According to the Congressional Budget Office, as many as 750,000 federal workers could be temporarily affected.

What a government shutdown means

A government shutdown occurs when Congress fails to pass appropriations bills to fund federal agencies into the new fiscal year, which begins on October 1. While some essential services, including Social Security, Medicare, and national security operations, continue, non-essential employees are furloughed, and routine services may be disrupted. 

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During a shutdown, federal agencies must implement contingency plans, which can include suspending inspections, halting maintenance of public lands, and delaying routine administrative functions. In past shutdowns, agencies such as the Food and Drug Administration paused inspections, national parks closed, and immigration court hearings were cancelled, affecting both public services and vulnerable populations.

Impact on public services and essential operations

Essential services linked to national security and public safety, such as law enforcement, disaster aid, emergency medical care, air traffic control, and border security, remain operational, though staffing reductions may cause delays.

Agencies like the U.S. Postal Service and certain benefits programs continue, but others, including WIC (Women, Infants, and Children), may see funding interruptions if the shutdown persists. Routine interactions with Medicare and Medicaid may experience delays, though payments continue.

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Federal facilities affected include military bases, veterans’ medical centers, prisons, courthouses, national laboratories, national parks, ports, IRS offices, and law enforcement agencies. Travel plans may face delays as TSA and FAA employees continue working without pay, leading to longer security lines and flight disruptions.

Financial and economic implications

Federal employees typically receive retroactive pay once the government reopens, but the immediate impact can cause financial strain, delayed mortgage and credit card payments, and potential defaults. Government contractors generally do not receive back pay. The Congressional Budget Office estimated that the 2018–2019 shutdown cost the US economy $11 billion, largely due to reduced consumer spending by federal workers.

Ending a shutdown

A government shutdown can only end when Congress passes appropriations bills and the President signs them into law. The President cannot unilaterally reopen the government.

As of now, neither President Donald Trump nor congressional leaders have signalled a willingness to compromise, with Trump warning that his administration may let go of “a lot” of federal workers if a shutdown occurs.

Senate Democratic leader Chuck Schumer said Republicans are trying to “bully” the Democrats, while Trump posted a video mocking the opposition.

In the meantime, offices in Washington, D.C., and congressional districts remain open to assist citizens with urgent issues, including Social Security, Medicare, IRS inquiries, veterans’ benefits, and immigration services. Citizens are encouraged to contact their representatives to navigate disruptions and report impacts on their households.

The US government is on the brink of a formal shutdown as last-ditch efforts to pass a Republican-crafted short-term funding bill failed. The Senate vote on Tuesday evening was 55 to 45, short of the 60 votes required to pass the measure, Reuters reported.

Without congressional action, federal funding will expire at 12:01 AM ET (9:31 AM IST) on Wednesday, October 1, 2025, triggering the first shutdown in almost seven years.

Advertisement

Senate Democrats have made it clear that they will block a Republican stopgap package unless it addresses their priorities, including extensions for expiring healthcare benefits. Bloomberg reported that the standoff reflects deeper partisan divisions, with neither party willing to compromise even as the federal funding deadline looms.

The White House Budget Office has confirmed that the expiration of funding will trigger a formal shutdown. This means essential workers, including military personnel, will continue to work without pay, while non-essential federal employees may be furloughed.

According to the Congressional Budget Office, as many as 750,000 federal workers could be temporarily affected.

What a government shutdown means

A government shutdown occurs when Congress fails to pass appropriations bills to fund federal agencies into the new fiscal year, which begins on October 1. While some essential services, including Social Security, Medicare, and national security operations, continue, non-essential employees are furloughed, and routine services may be disrupted. 

Advertisement

During a shutdown, federal agencies must implement contingency plans, which can include suspending inspections, halting maintenance of public lands, and delaying routine administrative functions. In past shutdowns, agencies such as the Food and Drug Administration paused inspections, national parks closed, and immigration court hearings were cancelled, affecting both public services and vulnerable populations.

Impact on public services and essential operations

Essential services linked to national security and public safety, such as law enforcement, disaster aid, emergency medical care, air traffic control, and border security, remain operational, though staffing reductions may cause delays.

Agencies like the U.S. Postal Service and certain benefits programs continue, but others, including WIC (Women, Infants, and Children), may see funding interruptions if the shutdown persists. Routine interactions with Medicare and Medicaid may experience delays, though payments continue.

Advertisement

Federal facilities affected include military bases, veterans’ medical centers, prisons, courthouses, national laboratories, national parks, ports, IRS offices, and law enforcement agencies. Travel plans may face delays as TSA and FAA employees continue working without pay, leading to longer security lines and flight disruptions.

Financial and economic implications

Federal employees typically receive retroactive pay once the government reopens, but the immediate impact can cause financial strain, delayed mortgage and credit card payments, and potential defaults. Government contractors generally do not receive back pay. The Congressional Budget Office estimated that the 2018–2019 shutdown cost the US economy $11 billion, largely due to reduced consumer spending by federal workers.

Ending a shutdown

A government shutdown can only end when Congress passes appropriations bills and the President signs them into law. The President cannot unilaterally reopen the government.

As of now, neither President Donald Trump nor congressional leaders have signalled a willingness to compromise, with Trump warning that his administration may let go of “a lot” of federal workers if a shutdown occurs.

Senate Democratic leader Chuck Schumer said Republicans are trying to “bully” the Democrats, while Trump posted a video mocking the opposition.

In the meantime, offices in Washington, D.C., and congressional districts remain open to assist citizens with urgent issues, including Social Security, Medicare, IRS inquiries, veterans’ benefits, and immigration services. Citizens are encouraged to contact their representatives to navigate disruptions and report impacts on their households.

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