Overview

• Funding lapsed at 12:01 a.m. after the Senate rejected both a House Republican stopgap bill and a Democratic alternative, with the 60‑vote threshold preventing passage.
• The standoff hinges on renewing Affordable Care Act subsidies expanded during the pandemic, which Democrats insist on extending and Republicans oppose.
• OMB Director Russell Vought ordered an orderly halt of nonessential operations as agencies implement contingency plans across the federal government.
• President Trump warned the administration could take irreversible actions during the stoppage, including potential workforce reductions and cuts to certain programs.
• National parks, some social benefits and potentially air travel face disruptions, and Nationwide estimates a 0.2 percentage‑point hit to annual GDP growth for each week of closure as markets show limited immediate stress.