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U.S. Government Shuts Down After Senate Deadlock Over ACA Subsidies

A 60‑vote Senate threshold leaves Republicans short, with Democrats insisting on extending pandemic‑era Obamacare subsidies.

Overview

  • The shutdown began at 12:01 a.m. after the Senate rejected competing seven‑week funding bills and adjourned, prompting the White House budget office to order an orderly halt to nonessential operations.
  • The core dispute is whether to renew enhanced Affordable Care Act subsidies expiring later this year, as Republicans push a short‑term continuing resolution that omits the extension.
  • Roughly 750,000 federal employees are expected to be furloughed, while essential personnel such as military, federal police, and air‑traffic controllers continue working without immediate pay.
  • National parks and many museums are closing or curtailing services, and agencies warn of delays to certain benefits, permits, inspections, and routine regulatory activity.
  • President Trump said the administration could take irreversible steps during the shutdown, including potential permanent staff cuts, while analysts estimate each week could shave about 0.1–0.2 percentage points from annualized GDP and key economic data releases may be delayed.