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U.S. Government Partially Shuts Down After Senate Rejects Stopgap Funding

A Senate stalemate over health subsidies versus Medicaid cuts triggered the funding lapse.

Overview

  • The deadline passed just after midnight on Oct. 1 after senators blocked both a Republican continuing resolution (55–45, short of 60) and a Democratic alternative (47–53).
  • Federal agencies activated contingency plans as the CBO estimated roughly 750,000 employees would be furloughed or otherwise affected under the Anti‑Deficiency Act.
  • The FAA said 11,000 staff are sent home and about 13,000 air traffic controllers must work without pay, with potential travel delays, while many Pentagon civilians face furloughs.
  • Essential operations continue, but key government data releases are paused, with the Labor Department’s jobs report among those at risk of delay.
  • Political leaders remain at odds as the White House labels it a “Democratic shutdown” and the president threatens workforce and program cuts, with no timeline for reopening under the Senate’s 60‑vote threshold.