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The US government shut down on Wednesday after Congress deadlocked over health care funding. Federal workers face furloughs, essential services continue, and economists warn a prolonged standoff could strain families, safety nets, and the economy.
American flags fly in front of the US Capitol at sunrise, Wednesday, Oct. 1, 2025, in Washington. (AP Photo)
UPDATED: Oct 2, 2025 00:58 IST
The federal government shut down on Wednesday after lawmakers missed a midnight funding deadline, with Republicans and Democrats deadlocked over health care priorities and showing no signs of compromise.
Republicans pushed a short-term plan to extend funding at current levels through November 21. Democrats blocked it, demanding reversal of Medicaid cuts tied to President Donald Trump’s summer budget package and an extension of tax credits that help millions afford health insurance under the Affordable Care Act. Republicans called that a trillion-dollar “nonstarter.”
Trump signalled he may lean into the standoff. “We can do things during the shutdown that are irreversible, that are bad for them,” he said of Democrats, warning of programme cuts.
FEDERAL WORKFORCE HIT
Roughly 750,000 federal workers could be furloughed each day, at a daily wage cost of USD 400 million, according to the Congressional Budget Office. Essential staff, from FBI investigators and air traffic controllers to active-duty military, remain on the job without pay until the shutdown ends.
Social Security, Medicare, and veterans’ health care continue, while mail delivery is unaffected because the Postal Service is funded independently.
SHUTDOWN CONTINGENCY PLANS SHOW SWEEPING DISRUPTIONS
The Department of Health and Human Services will furlough 41% of its nearly 80,000 workers. The Centers for Disease Control and Prevention will keep tracking outbreaks, but most research halts. At the NIH, current patients continue treatment, but no new clinical trials will begin.
The Food and Drug Administration says its “ability to protect and promote public health” will be sharply reduced, with delays in reviewing new drug and device applications.
The Park Service will furlough two-thirds of its staff while leaving most parks open. Past shutdowns saw vandalism and safety hazards when staffing was thin. Smithsonian museums and the Zoo plan to stay open through at least Monday.
FOOD PROGRAMMES AND SAFETY NETS
SNAP benefits, known as food stamps, will continue through October. The WIC program for women, infants, and children has enough leftover funds to run one to two more weeks, according to advocates.
ECONOMIC FALLOUT
Economists say brief shutdowns have limited impact, since workers are guaranteed back pay under a 2019 law. But longer closures drag on the economy and fuel uncertainty.
“The impact is not immediate, but over time, there is a negative impact of a shutdown on the economy,” said Phillip Swagel, director of the Congressional Budget Office.
Markets have historically rebounded after shutdowns. But the last prolonged closure — a 35-day standoff in 2018–19 — left parks damaged, workers unpaid for weeks, and Washington more polarised.
With health care funding at the centre of this latest fight, there is no sign either side is ready to back down.
- Ends
Published By:
Aashish Vashistha
Published On:
Oct 2, 2025
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