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Federal government shutdown begins, with no easy exit in sight

U.S. Senate Majority Leader John Thune, R-S.D., speaks to the media at the U.S. Capitol on Sept. 30, 2025 in Washington, D.C. Thune was joined by Sen. Tom Cotton, R-Ark., Sen. Shelley Moore Capito, R-W.Va., Sen. John Barrasso, R-Wyo., and Sen. James Lankford, R-Okla. (Photo by Kevin Dietsch/Getty Images)

U.S. Senate Majority Leader John Thune, R-S.D., speaks to the media at the U.S. Capitol on Sept. 30, 2025 in Washington, D.C. Thune was joined by Sen. Tom Cotton, R-Ark., Sen. Shelley Moore Capito, R-W.Va., Sen. John Barrasso, R-Wyo., and Sen. James Lankford, R-Okla. (Photo by Kevin Dietsch/Getty Images)

This report has been updated.

WASHINGTON — The federal government started shutting down early Wednesday after Congress failed to approve a funding bill before the beginning of the new fiscal year — resulting in widespread ramifications for hundreds of programs and giving the Trump administration an avenue to fire federal workers en masse.

The U.S. Senate was unable to advance two short-term government funding bills Tuesday when Democrats and Republicans deadlocked for the second time this month, with just hours to go before the midnight Tuesday shutdown deadline.

Senators voted 55-45 on Republicans’ bill that would fund the government for seven weeks and 47-53 on a Democratic stopgap proposal that would keep the lights on for a month and included several health care provisions that they said were needed for their support. Neither had the 60 votes needed to advance. 

Nevada Democratic Sen. Catherine Cortez Masto, Pennsylvania Democratic Sen. John Fetterman and Maine independent Sen. Angus King voted with GOP senators on their stopgap bill. Kentucky GOP Sen. Rand Paul voted against it.

White House Office of Management and Budget Director Russ Vought said in a memo to departments and agencies Tuesday night after the Senate vote that “affected agencies should now execute their plans for an orderly shutdown.” Vought said federal employees should report for their next regularly scheduled tour of duty to undertake shutdown activities.

The consequences of a shutdown will be sweeping in the nation’s capital and across the country, where states are bracing for the impact. About 750,000 federal workers could be furloughed, leading to a $400 million impact a day, the nonpartisan Congressional Budget Office reported. All federal employees would go unpaid until the shutdown is over.

Additionally, the Trump administration plans to lay off thousands of federal employees, which would reshape the federal workforce. President Donald Trump again vowed Tuesday to undertake layoffs and a major government employee union filed suit in federal court in advance of such a move.

More votes on GOP bill planned

Senate Majority Leader John Thune, R-S.D., said hours before the votes there wouldn’t be any talks with Democrats during a shutdown. 

“The negotiation happens when the government is open. So let’s keep the government open and then we will have the negotiations,” Thune said. 

“We’re happy to sit down and talk about these issues that they’re interested in,” he said. “But it should not have anything to do with whether or not for a seven-week period we keep the government open, so that this government can continue to do its work and that we can do our work through the regular appropriations process to fund the government.” 

After the votes failed, Thune expressed his frustration with Democrats during a press conference. 

“This is so unnecessary and uncalled for,” he said. 

Thune said he plans to bring up a vote on the continuing resolution again. He said as soon as Wednesday the federal government can be funded if five Democrats voted with Republicans. 

“Democrats may have chosen to shut down the government, but we can reopen it tomorrow,” Thune said. 

Republican Whip John Barrasso of Wyoming said the “cracks in the Democrats are already showing,” noting that three Democrats voted with Republicans Tuesday night. 

“There is bipartisan support for keeping the government open,” Barrasso said. “We’re happy to see that the Democrats are already starting to break from (Senate Democratic Leader Chuck Schumer) and we’re going to continue to offer a clean (continuing resolution) on the floor of the Senate to open the government for the next seven weeks.”

Health care tax credits at center of standoff

The disagreement isn’t entirely about GOP lawmakers writing their short-term funding bill behind closed doors and then expecting Democrats to help advance it in the Senate, where bipartisanship is required for major legislation.

Democratic leaders have raised concerns for weeks about the end-of-year sunset of enhanced tax credits for people who buy their health insurance on the Affordable Care Act Marketplace, arguing a solution is needed now ahead of the open enrollment period starting on Nov. 1. 

Congressional Black Caucus Chair Yvette Clarke, a New York Democrat, speaks at a press conference outside the U.S. Capitol in Washington, D.C., on Sept. 30, 2025. (Photo by Shauneen Miranda/States Newsroom)
Congressional Black Caucus Chair Yvette Clarke, a New York Democrat, speaks at a press conference outside the U.S. Capitol in Washington, D.C., on Sept. 30, 2025. (Photo by Shauneen Miranda/States Newsroom)

Democrats have also grown increasingly frustrated with the White House budget office’s unilateral actions on spending, arguing Vought is significantly eroding Congress’ constitutional power of the purse. Sen. Susan Collins of Maine, the Republican chairwoman of the U.S. Senate Appropriations Committee, said Tuesday the Government Accountability Office should sue the Trump administration over its efforts to freeze or unilaterally cancel spending approved by Congress. 

Senate Minority Leader Chuck Schumer said Democrats need an agreement with Republicans to extend the enhanced tax credits. 

Schumer said people will begin getting notices in October telling them how much the cost of their ACA plans will increase during the next year, which he expects will ratchet up pressure on Republican leaders to broker a bipartisan agreement. 

“We’re going to be right there explaining to them it’s because the Republicans wouldn’t negotiate with us,” Schumer said, referring to consumers. “We’re ready to do it anytime. And there will be huge heat on (Republicans) on this issue.”

People who buy health insurance on the ACA marketplace and receive subsidies through enhanced ACA tax credits could expect to pay on average more than double for annual premiums in 2026 if the credits expire as scheduled at the end of this year, according to an analysis released Tuesday by the nonprofit health policy research organization KFF. 

The analysis found premiums could increase from an average of $888 this year to $1,904 in 2026.

Claims about immigrants 

Schumer also rebuffed GOP leaders saying that Democrats want to include people without legal immigration status in federal health care programs. 

“They say that undocumented people are going to get these credits. That is absolutely false. That is one of the big lies they tell, so they don’t have to discuss the issues,” Schumer said. “The federal government by law that we passed does not fund health insurance for undocumented immigrants in Medicaid, nor the ACA nor Medicare. Undocumented immigrants do not get federal health insurance premiums.” 

Immigrants in the country without legal authorization are not eligible for Medicaid, and neither are most immigrants with legal status, such as those with student visas or enrollment in the Deferred Action for Childhood Arrivals program, known as DACA. 

Only immigrants with a “qualified status,” such as legal permanent residents, asylees and refugees, are able to get Medicaid benefits, and they usually have to wait five years before their coverage can even begin. 

Democrats explain why they voted with GOP 

Cortez Masto of Nevada wrote in a statement explaining her vote to advance the GOP stopgap bill that she could not support “a costly shutdown that would hurt Nevada families and hand even more power to this reckless administration.”

“We need a bipartisan solution to address this impending health care crisis, but we should not be swapping the pain of one group of Americans for another,” she added. “I remain focused on protecting health care for working families, and I call on my colleagues on both sides of the aisle to work together to tackle this problem.”

Pennsylvania’s Fetterman wrote in a statement of his own that his vote on the Republican bill “was for our country over my party.

“Together, we must find a better way forward.”

Collins said during a brief interview before the vote she is worried about the broad authority the White House holds during a shutdown and how the Office of Management and Budget has indicated it will use that power. 

“I’m much more concerned about OMB sending signals that there should be mass firings of federal employees who have the misfortune to be designated as non-essential, when in fact they’re performing very essential work, they’re just not being paid,” Collins said.  

North Dakota Republican Sen. John Hoeven, chairman of the Agriculture spending subcommittee, said lawmakers will have to sort through how various departments implement their contingency plans as well as the possibility of mass layoffs during a shutdown. 

“We’ll have to work through those things and figure out how we do keep things going as best we can during this Democrat shutdown,” Hoeven said.

West Virginia Sen. Shelley Moore Capito said Republicans are “unified in the belief that this is an easy choice” to fund the government with a stopgap bill that doesn’t include any contentious or political provisions. 

Capito — who chairs the Appropriations subcommittee that funds the departments of Education, Health and Human Services, and Labor — said there are several programs that will be “missed” during a shutdown. 

“And that’s concerning. So I think the option is to keep the government open so we can avoid this pain,” Capito said. 

‘I’m not optimistic that we’re going to get a path forward’

Missouri Republican Sen. Josh Hawley said he is worried about the possible impacts of a shutdown on his home state and that keeping the government open is the only way to avoid that.  

“I’m sure the administration will do everything they can,” Hawley said. “But the solution is to not shut the government down. I mean, why would you punish working people because you’re not getting what you want on any issue, whatever it is.”

South Dakota Republican Sen. Mike Rounds said he doesn’t expect a shutdown will end until after Democrats have sent a message to their voters. 

“I’m not optimistic that we’re going to get a path forward until they’ve had a shutdown,” he said. 

Rounds, who negotiated a handshake agreement with the White House budget director this summer to preserve some funding for rural tribal radio stations after Congress eliminated funding for the Corporation for Public Broadcasting, said that deal could be affected by a shutdown. 

“They’re putting the administration in a position where they can pick and choose what they’re going to do, and a shutdown is not going to be beneficial to these Native American radio stations,” Rounds said. 

Democratic Sen. Elissa Slotkin of Michigan said she wants Democrats and Republicans to negotiate on health care provisions.

“I’ve been making the case constantly, that (it) is literally my obligation to try and fight for health care, and I’m willing to talk to anyone,” she said. “I’m willing to accept that I certainly will not get everything I want.”

Senate Minority Whip Dick Durbin of Illinois said that while Democrats agreed to help advance what’s known as a continuing resolution in March, they can’t now because of “what President Trump is doing to this country, particularly when it comes to health care costs for families.”  

The shutdown will significantly affect the operations of the federal government as lawmakers have not passed any of the dozen full-year appropriations bills that finance agency operations. Oct. 1 is the beginning of the new fiscal year for the federal government.

Shutdown plan for national parks

Departments began releasing updated contingency plans this weekend, detailing how many of their employees would work during a government shutdown and how many would be furloughed.

The Interior Department, which includes the Bureau of Land Management, U.S. Fish and Wildlife Service and National Park Service, posted its updated plans late Tuesday. 

The National Park Service plans to furlough 9,300 of its 14,500 workers. 

The Trump administration will allow several activities necessary for the protection of life or property to continue, including fire suppression for active fires, permitting and monitoring First Amendment activities, border and coastal protection and surveillance, and law enforcement and emergency response.

The contingency plan says that roads, lookouts, trails, and open-air memorials will generally remain accessible to visitors,” but it adds that if “access becomes a safety, health or resource protection issue … the area must be closed.”

Union files suit

In anticipation of layoffs by the Trump administration, labor unions representing more than 1 million federal workers filed a lawsuit in the Northern District of California on Tuesday to block the Trump administration from carrying out mass firings. The suit argues that there is no statutory authority to fire federal employees during a government shutdown.

“These actions are contrary to law and arbitrary and capricious, and the cynical use of federal employees as a pawn in Congressional deliberations should be declared unlawful and enjoined by this Court,” according to the suit filed by the American Federation of Government Employees and the American Federation of State, County and Municipal Employees.

Ashley Murray and Shauneen Miranda contributed to this report. 

About 750,000 federal workers will be furloughed in shutdown, nonpartisan CBO projects

30 September 2025 at 19:27
The U.S. Capitol is seen behind a barricade on Sept. 30, 2025 in Washington, DC. If lawmakers fail to reach a bipartisan compromise on the funding bill, the federal government shutdown will begin at midnight. (Photo by Kevin Dietsch/Getty Images)

The U.S. Capitol is seen behind a barricade on Sept. 30, 2025 in Washington, DC. If lawmakers fail to reach a bipartisan compromise on the funding bill, the federal government shutdown will begin at midnight. (Photo by Kevin Dietsch/Getty Images)

WASHINGTON — A government shutdown could have significant economic consequences, though an analysis released Tuesday by the nonpartisan Congressional Budget Office said it’s difficult to pinpoint ramifications without knowing the length of a funding lapse or how exactly the Trump administration will try to reshape the federal workforce. 

Director Phillip L. Swagel wrote in a four-page letter the agency projects about 750,000 federal workers would be furloughed, leading to a $400 million impact per day. 

“The number of furloughed employees could vary by the day because some agencies might furlough more employees the longer a shutdown persists and others might recall some initially furloughed employees,” Swagel wrote. 

New plans from the Trump administration to lay off federal employees en masse, he wrote, could significantly change those calculations. 

The economic impacts and ramifications for business activity are hard to predict, he wrote, because it’s not yet clear how exactly the Trump administration will handle a shutdown or how long it will take congressional leaders to broker a stopgap funding agreement. 

The partial government shutdown that began in December 2018 and lasted through January 2019 led to a loss of about $3 billion in gross domestic product that couldn’t be recovered, according to a prior CBO analysis that was referenced in the letter. 

That represented about 0.02% of annual GDP in 2019. 

Swagel wrote the “effects of a government shutdown on business activity are uncertain, and their magnitude would depend on the duration of a shutdown and on decisions made by the Administration. 

“CBO expects that if a government shutdown persisted for several weeks, some private-sector entities would never recover all of the income they lost as a result of the suspension of federal activity.”

CBO conducted the analysis after receiving a request from Iowa Republican Sen. Joni Ernst. 

Thune, Schumer debate shutdown on Senate floor

A government shutdown will begin Wednesday unless congressional leaders broker a stopgap funding agreement before the new fiscal year starts. 

That seemed like a long shot early Tuesday afternoon as Senate Majority Leader John Thune, R-S.D., and Senate Minority Leader Chuck Schumer, D-N.Y., engaged in a brief debate on the floor, a rarity. 

Thune said Democrats would have the same leverage on health care issues they have now in mid-November, when the stopgap spending bill that passed the House but stalled in the Senate would expire. 

“They will have another funding cliff they can take advantage of come November the 21st,” Thune said. “This funds the government and protects federal workers and the American people from the hostage-taking that has become, evidently, now the Democratic norm. Even though it’s something they decried not that many years ago.”

Thune told reporters afterward the chamber would likely be out of session for Yom Kippur, which begins shortly before sunset on Wednesday and continues until Thursday night, but would otherwise hold votes during a shutdown.

“We will observe the Jewish holiday, but I would expect additional votes throughout the week,” Thune said. “I mean, we filed last night on a whole new bunch of (nominees) and I would expect additional votes on funding the government.”

Speaker Mike Johnson, R-La., canceled the House’s schedule for this week and doesn’t plan for that chamber to go back into session until Oct. 6 at the earliest.

Meeting breaks up with no deal

Congressional leaders, including Schumer and House Minority Leader Hakeem Jeffries, met with President Donald Trump at the White House on Monday, but were unable to make progress toward a stopgap funding agreement.

Schumer said on the Senate floor Tuesday that Democrats need a deal with GOP leaders to extend the enhanced tax credits for people who buy their health insurance on the Affordable Care Act Marketplace, which are set to expire at the end of the year. 

“In a day or two, millions of Americans — millions — are going to get notices that their insurance premiums will rise an average of $400 a month, $5,000 a year,” Schumer said. “A middle-class family can’t afford that. We want to renew those credits, among other things in health care. But renew those credits so that people won’t pay that horrible increase.”

Schumer called Republican assertions that Democrats want immigrants without legal status to have access to federal health care programs, like Medicare and Medicaid, “utter bull.”

“There is no money, not a penny of federal dollars that are going there. So why do they bring this up? Because they’re afraid to talk about the real issue, which is health care for American citizens, health care for people who need the health care and can’t afford these premiums,” Schumer said.

Without a new funding law before the start of the fiscal year at 12:01 a.m. on Wednesday, the government will begin shutting down.

The ramifications will be significantly broader than the 35-day shutdown that took place during Trump’s first term, when five of the dozen full-year government spending bills had become law.

That isn’t the case this time around and a shutdown is expected to affect every department and agency to varying degrees.

‘They’re taking a risk’

White House Office of Management and Budget Director Russ Vought has also called on Trump administration officials to implement mass layoffs during a prolonged funding lapse.

Trump said during a press conference in the Oval Office on Tuesday that he didn’t want a shutdown but that his administration might take sweeping action to restructure the federal government if one does begin. 

“We can do things during the shutdown that are irreversible, that are bad for them and irreversible by them, like cutting vast numbers of people out, cutting things that they like, cutting programs that they like,” Trump said, referring to Democrats. “So they’re taking a risk by having a shutdown, because because of the shutdown, we can do things medically and other ways, including benefits.”

Hundreds of thousands of federal employees face furloughs under Trump shutdown plans

29 September 2025 at 19:15
A U.S. Department of Education employee leaves the building with their belongings on March 20, 2025 in Washington, D.C., amid mass layoffs.  (Photo by Win McNamee/Getty Images)

A U.S. Department of Education employee leaves the building with their belongings on March 20, 2025 in Washington, D.C., amid mass layoffs.  (Photo by Win McNamee/Getty Images)

WASHINGTON — The Trump administration began posting plans over the weekend that detail how hundreds of thousands of federal workers will be furloughed during a government shutdown, while others will keep working without being paid. 

The updated guidance gives the clearest picture yet into how President Donald Trump and White House budget director Russ Vought hope to reduce the size and scope of government when given increased authority over the federal workforce during a funding lapse

A shutdown will begin Wednesday unless Republicans and Democrats in Congress reach agreement on a stopgap spending bill. Congressional leaders were set to meet Monday afternoon with Trump, but it was unclear if any agreement would result that would avert a shutdown.

The Defense Department’s plan shows it would keep about 406,500 of its 741,500 civilian employees working without pay during the shutdown, with the remaining going on furlough. 

The nearly 2.1 million military personnel housed within the department would continue to work throughout a shutdown but would not be paid until after it ends. 

The plan says the Defense Department believes operations to secure the U.S. southern border, Middle East operations, Golden Dome for America defense system, depot maintenance, shipbuilding and critical munitions are the “highest priorities” in the event of a shutdown. 

Medical and dental services, including private sector care under the TRICARE health care program, would largely continue at the Defense Department, though “(e)lective surgery and other routine/elective procedures in DoW medical and dental facilities are generally not excepted activities, unless the deferral or delay of such procedures would impact personnel readiness or deployability.”

Thousands of workers to be sent home from HHS

The Health and Human Services Department plans to furlough about 32,500 of its nearly 80,000 employees during a shutdown. 

The various components of HHS — including the Centers for Disease Control and Prevention, Centers for Medicare and Medicaid Services, Food and Drug Administration, and National Institutes of Health — have individual plans for a shutdown. 

The Centers for Medicare and Medicaid Services plans to retain 3,311, or 53%, of its employees during a shutdown and “will maintain the staff necessary to make payments to eligible states for the Children’s Health Insurance Program (CHIP).”

The CDC plans to have 4,891, or 35.88%, of its employees as well as those at the Agency for Toxic Substances and Disease Registry keep working. 

The contingency plans says that “(r)esponses to urgent disease outbreaks and continuing efforts to support the President’s Emergency Plan for AIDS Relief (PEPFAR), World Trade Center (WTC) Health Program, the Energy Employees Occupational Illness Compensation Program Act (EEOICPA), and the Vaccines for Children (VFC) program” would continue during a shutdown. 

The CDC would not be able to undertake several other activities, including providing “guidance to state and local health departments implementing programs to protect the public’s health (e.g., opioid overdose prevention, HIV prevention, diabetes prevention).”

Departments with plans

Here is a list of the departments that have posted updated contingency plans in September:

Here is a list of the departments that hadn’t posted updated contingency plans as of Monday afternoon:

  • Agriculture Department contingency plan
  • Commerce Department contingency plan
  • Energy Department contingency plan
  • Housing and Urban Development contingency plan
  • Interior Department contingency plan
  • State Department contingency plan
  • Transportation Department contingency plan
  • Veterans Affairs Department contingency plan

States Newsroom’s Washington, D.C. Bureau reached out to the  departments that didn’t have contingency plans posted to ask when those might become public.

A spokesperson for the USDA wrote in an email the department “is prepared for all contingencies regarding Department operations, including critical services and supports.” 

A State Department spokesperson said leadership “is undergoing all necessary planning efforts to sustain critical missions.”

Federal employees who work  without pay will be paid after the shutdown concludes. 

According to the Office of Personnel Management — the executive branch’s chief human resources agency — “after the lapse in appropriations has ended, employees who were furloughed as the result of the lapse will receive retroactive pay for those furlough periods.” 

The Government Employee Fair Treatment Act of 2019 requires furloughed government employees to receive back pay as a result of a government shutdown. 

That law does not apply to federal contractors, who face uncertainty in getting paid during a shutdown. 

Ashley Murray, Ariana Figueroa, Shauneen Miranda and Jacob Fischler contributed to this report.

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