The US federal government entered a shutdown after Congress failed to pass appropriations or a continuing resolution (CR) to fund government operations for the new fiscal year on October 1, 2025, at 12:01 a.m. The failure stemmed from deep partisan disagreement between Republicans and Democrats. Republicans had pushed for a CR that would maintain funding at existing levels until November 21, 2025, but Democrats refused to pass it because it did not include extensions of certain health care subsidies or reversal of Medicaid cuts.
The failure stemmed from deep partisan disagreement between Republicans and Democrats. Republicans had pushed for a CR that would maintain funding at existing levels until November 21, 2025, but Democrats refused to pass it because it did not include extensions of certain health care subsidies or reversal of Medicaid cuts. Meanwhile, Senate Democrats blocked that CR in the Senate, and a competing Democratic version that included policy changes was also rejected.
An internal memo from the White House Office of Management and Budget (OMB) directed federal agencies to consider mass firings (reductions in force or RIFs) in programs that would lapse, rather than only temporary furloughs, signaling a more aggressive approach compared to past shutdowns.
Approximately 750,000 federal employees are expected to be furloughed (temporarily laid off without pay) during the shutdown. In addition, many essential personnel (military, law enforcement, air traffic controllers) will continue working without pay until funding is restored.
The Department of Health and Human Services (HHS) plans to furlough about 41% of its workforce (32,460 of 79,700 employees). The National Institutes of Health (NIH) anticipates a 75% staff reduction, which will disrupt clinical research, peer reviews, and operations. The Centers for Disease Control and Prevention (CDC) will furlough 64% of its staff, limiting its ability to respond to public health crises.
The Department of Transportation is expected to furlough about 12,200 of its 53,717 employees. The Federal Aviation Administration (FAA) would furlough over 11,000 employees, though key operations like aircraft certification and commercial space licensing will continue. Meanwhile, more than 13,000 air traffic controllers would be required to work without immediate pay. The Transportation Security Administration (TSA) would also remain operational, but many of its staff (50,000) would work unpaid. Airlines and travel groups warn that flight delays, cancellations, and general disruption are likely.
Several agencies with discretionary funding (EPA, Education, Commerce) are likely to see large furloughs or operational pauses. Programs such as WIC (Women, Infants and Children nutrition assistance) may face suspension, while Social Security, Medicare, and Medicaid continue because they are mandatory entitlement programs.
The Congressional Budget Office (CBO) estimates the shutdown could cost about 400 million dollar per day in lost compensation and reduced economic activity. The travel industry alone could lose about 1 billion dollar weekly if disruptions persist. Some households dependent on federal paychecks may struggle with unpaid bills, and state and local economies could feel spillover impacts.