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1h ago

Government Partially Shuts Down as Senate Deadlocks Over ACA Subsidies

Democrats are withholding Senate votes to force an extension of expiring Affordable Care Act premium subsidies.

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A sign announces that the U.S. Capitol Visitor Center is closed, on the first day of a partial government shutdown, Wednesday, Oct. 1, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)
WASHINGTON, DC - SEPTEMBER 30: Senate Minority Leader Charles Schumer (D-NY) talks to reporters following the weekly Senate Democratic policy luncheon at the U.S. Capitol on September 30, 2025 in Washington, DC. If lawmakers fail to reach a bipartisan compromise then the federal government will shutdown at midnight. (Photo by Chip Somodevilla/Getty Images)

Overview

  • Federal funding lapsed at 12:01 a.m., OMB ordered agencies to execute shutdown plans, and roughly 750,000 workers face furloughs as nonessential operations wind down.
  • The Senate rejected competing short-term funding bills and adjourned until Friday, with the House not due back until next week and no immediate bipartisan deal in sight.
  • The White House warned layoffs are imminent, with officials saying agencies are preparing reductions in force beyond typical furloughs during a funding lapse.
  • Essential services such as Social Security and Medicare payments continue, but delays are likely as many workers are unpaid and air traffic controllers’ union raised safety concerns.
  • Political tensions escalated as President Trump amplified an AI-generated video mocking Democratic leaders and Republicans falsely claimed Democrats seek benefits for undocumented immigrants, which federal law forbids.