With just days remaining before a critical deadline, the U.S. Congress must approve new spending legislation by Tuesday, September 30, 2025, to prevent a partial federal government shutdown. The standoff highlights a recurring problem in Washington, where budget negotiations often stall until the eleventh hour, placing federal operations and millions of workers at risk.
Why Could the Government Shut Down?
Federal funding for 438 agencies is required before the new fiscal year begins on October 1. While Congress is mandated to pass comprehensive budgets, lawmakers frequently fail to meet the deadline and instead rely on temporary spending bills known as continuing resolutions. If no agreement is reached, funding lapses, and all “non-essential” government services must halt immediately.
The funding battle has intensified under President Donald Trump’s administration. Since taking office, Trump has dismantled several agencies, overseen the departure of hundreds of thousands of civil servants, and withheld billions in congressional funding allocations. Republicans have largely praised his efforts, seeing them as reducing bureaucracy, while Democrats argue they undermine Congress’s constitutional authority over spending.
Although Republicans control both the House and the Senate, passing a spending bill requires bipartisan support. At least seven Democratic votes are needed in the Senate, giving the minority party significant leverage. This time, Democrats are demanding that any funding agreement include provisions to extend expanded Affordable Care Act (ACA) health subsidies set to expire at year’s end. Republicans have indicated they might support the subsidies but argue the issue should be resolved separately from the immediate budget.
What Happens During a Shutdown?
Government shutdowns are not new to the United States. According to the Congressional Research Service, there have been 14 shutdowns since 1981. While some lasted only hours or days, others have dragged on for weeks. The most recent—and longest—shutdown spanned 35 days between December 2018 and January 2019, caused by a dispute between Trump and Congress over funding for border security.
During a shutdown, hundreds of thousands of federal workers are furloughed without pay, while others designated as essential—such as air traffic controllers, military personnel, and border security agents—must continue working without immediate compensation. In 2018–2019, roughly 800,000 of the federal government’s 2.2 million employees were affected. Although workers typically receive back pay once funding is restored, the delays can create financial strain.
Shutdowns also disrupt a wide range of services. Financial oversight, food safety inspections, scientific research, and even basic services like waste collection at national parks can be suspended. During the last shutdown, the Trump administration controversially kept 63 national parks open, but restrooms, visitor centers, and trash disposal services were shuttered, creating public health and safety concerns.
Economic Impact
Short shutdowns, particularly those that occur over weekends, tend to have minimal long-term consequences. However, extended shutdowns can weaken consumer confidence, strain households reliant on federal paychecks, and slow economic activity. The Congressional Budget Office estimated the 2018–2019 shutdown shaved about $3 billion from the U.S. economy, or roughly 0.02% of GDP.
Economists warn that another prolonged shutdown could be even more damaging, given existing uncertainties caused by Trump’s trade disputes, fluctuating monetary policy debates with the Federal Reserve, and global market volatility. A delay in government payments, from federal salaries to contracts, could ripple across sectors ranging from defense to healthcare.
Essential vs. Non-Essential Functions
Every federal agency maintains contingency plans outlining which operations must continue during a funding lapse. Critical national security, public safety, and emergency response services are classified as essential. This includes military operations, border security, air traffic control, and law enforcement. Non-essential services such as national museum operations, many administrative offices, and regulatory agencies are typically suspended until funding is restored.
What Comes Next?
As Tuesday’s deadline approaches, all eyes remain on Congress. Democrats and Republicans must balance the urgency of keeping the government running with their competing policy priorities. While both sides acknowledge the need to pass a funding bill, the broader political struggle, particularly over healthcare subsidies, has raised the risk of a standoff.
Should negotiations fail, the U.S. will face its 15th government shutdown in four decades, underscoring the deep partisan divides over federal spending and the growing challenges of governing amid heightened political polarization.
