US Government shutdown 2025: What it is, why it happens, and why this year feels more serious – full details inside

A government shutdown is looming in the United States, as Democrats and Republicans clash over domestic policies related to healthcare, federal job cuts and international funding. President Trump and the Leaders of Congress are set to meet today at the White House, which could decide whether the US Government will shut down this week. The clock is ticking on an agreement to be reached by September 30 midnight.

What is a government shutdown in the US?

In the United States, the fiscal year is calculated from October 1. If a deal is not reached by midnight on September 30, then federal agencies and departments will run out of legal authority for spending. Without funding, many parts of the department can not function and will be forced to cease all non-essential functions.

Does a government shutdown happen every year?

A government shutdown does not happen every year. It happens only if an agreement is not reached on budget spending or a continuing resolution. In the last 50 years, there have been 21 government shutdowns. With the last one being in 2018-19 during President Donald Trump's last term in office. It lasted for approximately 35 days; the major dispute was then funding for the US-Mexico border wall.

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Why is the 2025 shutdown threat more serious?

This year's threat seems more potent, as a memo released by the White House told federal agencies to prepare for permanent layoffs in departments in the event of a shutdown. Trump earlier this week refused to sit down with congressional leaders, alleging that their demands were unserious. In exchange for their votes in the Senate, the Democrats are demanding a rollback on the wholesale Medicaid cuts, extension of subsidies that limit the cost of health insurance under the Affordable Care Act, and the restoration of the funding to public media. Liz Shuler, the president of the American Federation of Labour and Congress of Industrial Organisations (AFL-CIO) said that government employees have already suffered because of the Elon Musk-led government efficiency campaign. She said the federal employees are becoming stooges of Trump's political gain. While Republicans hold a majority in both chambers of the House are pushing for a short-term funding bill that would extend government funding bill till November 21. The government is planning to employ the shutdown as a strategy to downsize the federal workforce. Nearly 100,000 federal workers are expected to resign tomorrow.

What is most affected during a government shutdown?

Federal agencies like non-essential offices, national parks and museums are expected to perform at limited capacity. Government benefits like Social Security and Medicare are likely to face delays in processing, and paychecks for military and security personnel, federal employees, will be furloughed. Contractors and businesses will face interruptions in payments and temporary suspensions of projects. There are expected delays for visa and passport processing, affecting international businesses and travellers.