Overview

• The shutdown began Oct. 1 after a Republican stopgap bill to fund agencies through Nov. 21 drew 55 votes in the Senate, short of the 60 needed.
• A subsequent vote on a Democratic proposal failed 47–53 on Wednesday, leaving no agreement to restart funding.
• Agencies are executing OMB “orderly shutdown” plans with roughly 750,000 federal employees facing furloughs and an estimated $400 million in daily lost pay, while essential services continue and the BLS halts key releases including the payroll report.
• President Donald Trump has threatened program cuts and mass firings during the lapse, OMB Director Russell Vought urged agencies to consider workforce reductions, and the White House froze $18 billion for New York transit projects to increase pressure.
• Markets showed volatility with U.S. futures lower and gold near highs, analysts warn damage rises if the standoff persists, and this marks the 15th federal shutdown since 1981 and the first since 2019.