The US federal government has been shut down since 1 October 2025, after Congress failed to pass a funding bill before the end of the fiscal year, forcing most non-essential federal operations to halt. It is the first shutdown since 2019.
Approximately 750,000 federal employees are affected daily by furloughs and payroll delays, resulting in roughly $400mn in delayed compensation per day. However, a recent White House memo suggested that furloughed workers may not receive back pay, breaking with past precedent.
Essential employees—including law enforcement officers, air traffic controllers, and active-duty military—continue working without pay until the government reopens, while lawmakers and the president still receive salaries under constitutional protection.
Social Security and Medicare payments continue, but administrative services face delays. Air travel remains operational but suffers reduced safety oversight and halted training programs.
Economically, the shutdown is expected to cost $7–15bn in lost GDP per week. Losses recorded during the 2018–19 closure reached $11bn, of which $3bn persisted. Reduced US government and consumer demand could weaken global trade, while customs delays, export licensing bottlenecks, and disrupted trade data risk slowing international supply chains.
The political deadlock stems from divisions within Congress and tensions between Republican leaders, particularly Donald Trump and Speaker Mike Johnson, over funding extensions and debt-ceiling increases. Trump’s opposition to stopgap funding bills and his push to cut “Democrat agencies” have deepened the impasse.
