WASHINGTON — The U.S. federal government shut down Wednesday at 12:01 a.m. after the Senate failed to pass two different proposals on Tuesday that would have kept the government funded past the deadline.
Both a Democratic-backed spending bill and a GOP-supported stopgap measure failed in the upper chamber, marking the 21st funding gap since the 1977 fiscal year. The shutdown comes after eleventh-hour negotiations between President Donald Trump and congressional leaders failed to yield an agreement on Monday.
“I think we’re headed to a shutdown because the Democrats won’t do the right thing,” Vice President JD Vance said following the Monday meeting at the White House.
Blame Game and Stalemate
Congressional leaders spent Tuesday blaming one another for the looming lapse in funding. The Democratic bill failed after it sought to extend Affordable Care Act health care subsidies and reverse cuts to Medicaid—measures Republicans opposed. The Republican proposal, which would have funded the government for seven weeks, also lacked the necessary votes.
Following the failed votes, White House Office of Management and Budget Director Russell Vought instructed federal agencies to “execute their plans for an orderly shutdown.”
Senate Minority Leader Chuck Schumer urged Republicans to return to negotiations. “We want to sit down and negotiate, but the Republicans can’t do it in their partisan way, where they just say it’s our way or the highway,” Schumer said at a news conference Tuesday night.
The Senate is expected to vote again on Wednesday, likely on the same two failed measures.
Potential Impact on Workers and the Economy
The shutdown immediately raises concerns about impacts on the U.S. economy and the federal workforce. The previous, and longest, shutdown began in December 2018 during Trump’s first term, lasting 35 days and resulting in the evaporation of an estimated $3 billion in U.S. economic activity, according to the Congressional Budget Office.
This time, as many as 4 million federal employees—including some service members—could go without a paycheck.
Essential Workers: Hundreds of thousands of workers, including airport security officers, air traffic controllers, and ICE agents, will be deemed essential and forced to work without pay.
Military Personnel: Approximately 2 million troops could be forced to work without pay, including hundreds of National Guard members deployed to U.S. cities. While most are on track to be paid for Oct. 1, officials say future paychecks are now subject to negotiations.
Contractors and Lawmakers: Federal contractors, like janitors and security guards, are not required to work and are not guaranteed back pay. Lawmakers on Capitol Hill, however, will continue to receive their $174,000 annual salaries.
The Pentagon’s contingency plan mandates that all active-duty troops report for duty. The plan prioritizes operations to secure the U.S. southern border, build the “Golden Dome” missile shield, and continue Middle East operations.
The Office of Management and Budget has not released a new estimate for furloughs this time but Director Vought has threatened Reductions in Force (RIFs)—mass firings—which Democrats have called an “intimidation tactic.”
Disruption to Federal Services
Across the government, key services face disruption:
Transportation: Over 13,000 air traffic controllers and nearly 58,500 Transportation Security Administration (TSA) employees will work without pay. During the 2018-2019 shutdown, staffing shortages led to increased TSA wait times and air traffic controller absences that grounded flights.
Health Services: Payments for Social Security, Medicare, and Medicaid will continue, but related services could slow down. Critically, the Food and Drug Administration (FDA)’s Animal Drugs and Foods Program would limit activities, unable to perform pre-market safety reviews, which could affect the ability to “ensure that the meat, milk, and eggs of livestock are safe for people to eat.”
Food Security: The federal supplemental nutrition program for women, infants and children (WIC), which serves nearly 7 million low-income individuals, may begin running out of funding if the shutdown lasts longer than a week.
Data Collection: The Department of Labor will stall “active” data collection and will not publish the scheduled monthly jobs report.
National Parks and Museums: National parks and Smithsonian museums typically close within a few days.
