- By Ajeet Kumar
- Wed, 01 Oct 2025 10:06 AM (IST)
- Source:JND
US Government Shutdown News: The US government shut down much of its operations on Wednesday as deep partisan divisions prevented Congress and the White House from reaching a funding deal, setting off what could be a long, grueling standoff that could lead to the loss of thousands of federal jobs.
There was no clear path out of the impasse, while agencies warned that the 15th government shutdown since 1981 would halt the release of a closely watched September employment report, slow air travel, suspend scientific research, withhold pay from US troops and lead to the furlough of 7,50,000 federal workers at a daily cost of $400 million.
Mega layoffs likely to hit US
Roughly 7,50,000 federal workers are expected to be furloughed, some potentially fired by the Trump administration. Many offices will be shuttered, perhaps permanently, as US President Donald Trump vows to “do things that are irreversible, that are bad” as retribution.
His deportation agenda is expected to run full speed ahead, while education, environmental and other services sputter. The economic fallout is expected to ripple nationwide. “We don't want it to shut down,” Trump said at the White House before the midnight deadline.
Trump did not entertain health demands
But the president, who met privately with congressional leadership this week, appeared unable to negotiate any deal between Democrats and Republicans to prevent that outcome.
This is the third time Trump has presided over a federal funding lapse, the first since his return to the White House this year, in a remarkable record that underscores the polarising divide over budget priorities and a political climate that rewards hardline positions rather than more traditional compromises.
Democrats opposed bill after Trump refuses extension of health benefits
The shutdown commenced hours after the Senate rejected a short-term spending measure that would have kept government operations afloat through November 21. Democrats opposed the legislation over Republicans' refusal to attach an extension of health benefits for millions of Americans that are due to expire at the end of the year. Republicans say the issue must be addressed separately.
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What Trump's party says
Republicans say the issue must be addressed separately. At issue on the government funding front is $1.7 trillion for agency operations, which amounts to roughly one-quarter of the government's total $7 trillion budget. Much of the remainder goes to health and retirement programs and interest payments on the growing $37.5 trillion debt.
Impacts of shutdown
Independent analysts warn the shutdown could last longer than the budget-related closures of the past, with Trump and White House officials threatening to punish Democrats with cuts to government programs and the federal payroll. Trump budget director Russell Vought, who has called for "less bipartisan" appropriations, threatened permanent layoffs last week in the event of a shutdown.
The longest government shutdown in US history stretched over 35 days during December 2018 and January 2019 during Trump's first term in office, in a dispute over border security
(With inputs from agencies)