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Government Shutdown Looms at Midnight With Senate Deadlocked Over ACA Subsidies

The White House is preparing layoff plans as agencies activate shutdown procedures.

A partisan standoff over health care and spending is threatening to trigger the first U.S. government shutdown in almost seven years, at the Capitol in Washington, Tuesday, Sept. 30, 2025. (AP Photo/J. Scott Applewhite)
House Speaker Mike Johnson, R-Louisiana, speaks to the media next to U.S. Vice President JD Vance, Office of Management and Budget Director Russell Vought and Senate Majority Leader John Thune, R-South Dakota, on the day President Donald Trump meets with top congressional leaders from both parties, just ahead of a Sept. 30 deadline to fund the government and avoid a shutdown, at the White House in Washington, D.C., on Sept. 29, 2025.
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A partisan standoff over health care and spending is threatening to trigger the first U.S. government shutdown in almost seven years, at the Capitol in Washington, Tuesday, Sept. 30, 2025. (AP Photo/J. Scott Applewhite)

Overview

  • Funding expires at 12:01 a.m. on Oct. 1 and another Senate vote on a stopgap to Nov. 21 lacks the support to pass.
  • Democrats are insisting on extending enhanced Affordable Care Act tax credits that expire at year’s end, while Republicans are pushing a clean continuing resolution.
  • President Trump says a lapse is “probably likely,” and the Office of Management and Budget has told agencies to prepare reduction‑in‑force plans.
  • The Congressional Budget Office projects about 750,000 furloughs and roughly $400 million per day in lost compensation during a shutdown.
  • Essential services such as Social Security payments, mail delivery, and most TSA and FAA staffing would continue without pay, with prolonged strain risking travel delays and about $1 billion in weekly losses to the travel economy.