US Federal Government Shuts Down Due to Budget Dispute

Kokcha News Agency: The US federal government has shut down after Congress failed to reach an agreement on a temporary budget bill before the end of the 2025 fiscal year at midnight on Tuesday. This marks the first government shutdown since 2019.

The Senate rejected both the Democratic and Republican proposals for a temporary budget, leading to a lapse in federal funding. The House of Representatives had previously approved a temporary budget bill on September 19, which would have funded the government until November 21, but the Senate did not pass it.

Democrats had insisted on extending health insurance subsidies and reversing Medicaid cuts, while Republicans pushed for a temporary budget without any changes to current spending levels.

President Donald Trump had warned on Tuesday that the federal government would likely shut down, potentially leading to the furlough of hundreds of thousands of employees. The Congressional Budget Office (CBO) estimated that around 750,000 workers could be furloughed without pay if the government shut down.

What Does a Government Shutdown Mean?
Under US law, if Congress fails to approve a budget for the fiscal year, which runs from October 1 to September 30, a temporary budget must be passed to bridge the gap. If no temporary budget is approved, the federal government loses its spending authority and suspends all non-essential services.

During a shutdown, non-essential federal employees are furloughed without pay, while “essential” personnel, including those in the military, intelligence agencies, public hospitals, airports, and prisons, continue to work. However, these essential workers typically do not receive their salaries until Congress passes a new budget.

The Last Government Shutdown:
The last government shutdown occurred during President Donald Trump’s first term, from December 2018 to January 2019, lasting 35 days—the longest in US history. That shutdown was triggered by a budget crisis over funding for Trump’s proposed border wall with Mexico, which Democrats refused to support.