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U.S. Government Shuts Down After Senate Blocks Stopgap as OMB Orders Layoff Planning

Democrats withheld votes over expiring ACA subsidies, forcing a funding lapse at 12:01 a.m.

The U.S. Capitol, hours before a partial government shutdown is set to take effect, in Washington, D.C., U.S., September 30, 2025. REUTERS/Elizabeth Frantz
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)
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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

  • The Senate rejected a seven‑week continuing resolution in a 55–45 vote, short of the 60 needed to advance, after the House passed the Republican bill.
  • Roughly 750,000 federal workers are expected to be furloughed at an estimated daily cost of about $400 million, while essential functions continue and many services pause.
  • OMB directed agencies to execute shutdown plans and prepare reduction‑in‑force notices, as President Trump warned of “irreversible” program cuts and layoffs.
  • The core dispute centers on Democrats’ push to extend Affordable Care Act premium subsidies and reverse recent Medicaid cuts, which Republicans insist be handled separately.
  • Agencies warn of delayed economic data including the monthly jobs report, curtailed operations at parks, halted or slowed loans and inspections, and unpaid duty for troops and other essential staff.