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U.S. Government Shuts Down After Senate Rejects Competing Stopgap Bills

Senate defeats reflect Democrats’ demand to extend ACA subsidies and reverse Medicaid cuts, with Republicans refusing to tie health policy to a short-term funding patch.

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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)
WASHINGTON, DC – SEPTEMBER 29: A view of the U.S. Capitol as the sun sets on September 29, 2025 in Washington, DC. House and Senate leadership met with President Donald Trump earlier in the day at the White House to try and avoid a government shutdown at midnight September 30. (Photo by Anna Moneymaker/Getty Images)
File photo of Donald Trump

Overview

  • The shutdown started just after midnight as OMB Director Russell Vought ordered agencies to execute their contingency plans.
  • The CBO estimates roughly 750,000 federal employees will be furloughed each day, while essential workers such as TSA agents, air traffic controllers, federal law enforcement and military personnel must work without pay until funding resumes with back pay expected.
  • Both parties’ proposals failed under the Senate’s 60-vote threshold: a GOP bill to fund the government through Nov. 21 fell 55–45 and a Democratic bill to late October with an ACA subsidy extension also fell short.
  • The core dispute centers on Democrats’ push to renew Affordable Care Act premium subsidies and undo recent Medicaid cuts, which Republicans say should be separated from a short-term funding bill.
  • President Donald Trump threatened potential permanent layoffs and program cuts during the lapse, while agencies and industry groups warned of delayed economic data, strained government services and possible travel disruptions, with the U.S. Travel Association estimating up to $1 billion in weekly losses if it persists.