The United States government shut down on October 1st, 2025, and it is the first time since December 22nd, 2018, that it has happened. For people wondering why or what has happened that has led to an entire government shutting down, here is a perspective.
Why has the government shut down?
The government has shut down when the Senate cannot agree on a fiscal budget to fund the government. Currently, it requires 60 votes to pass a bill. It is reported that the Senate consists of 53 seats held by the Republicans and needs the remaining votes from the Democrats to get their budget approved for the government services to function into October and beyond. However, the Democrats demanded that they would not support the budget unless the Republicans agreed with other things, such as extending the expiring Affordable Care Act, which means that there should be financial assistance provided for individuals with Health insurance post-expiration of December 31, 2025. It is reported that millions of people in the USA would choose to drop their health insurance coverage due to the higher premium cost without an extension.
What government services stop functioning?
Usually, most of the necessary government services, such as the Border Protection and law enforcement staff, Immigration and Customs Enforcement agents (ICE), in-hospital medical care and Air traffic controllers, would keep working as usual, although they might not be paid for their duties during a shutdown. The other government staff who are deemed non-essential will be on temporary, unpaid leave. This also includes contractors working for the federal agencies.
On the other hand, National parks will remain closed as they did in 2018, and there could be delays experienced around this time to process passport or visa applications, small business loans.
How does the Whitehouse react to the shutdown?
The last time the government shut down, the white house was certainly not taking it well. However, this time, when the news broke out, the White House seemed to be taking it well, as this gave the trump administration a chance to sack non-essential workers permanently. However, it is reported that the president continues to meet with the Senate, consisting of the top Democrats and Republicans, to make efforts to come to a decision.
Impact of the shutdown on the economy
While the government remains shut, workers could experience lay-offs, delayed payment or working without pay, and the market remains uncertain for investors, businessmen and the federal reserve. On the other hand, the reduced pay load can affect consumer spending, negatively affecting the local and private sector.
How does it affect schools and colleges
Most of the American schools and colleges are funded by the state and local government, and since the grants to schools were made over the summer, the disruptions would be minimal. Especially, a private university such as ours should continue to function well. However, students or professors waiting for a federal grant to start their research or project could experience delays. For International students applying for F-1 OPT or STEM OPT extension, there could be a hiccup in using a system named Employer Verification could be problematic as it remains suspended. However, there is an alternative document that may be used.
When could the government be back from a shutdown?
There have been 4 shutdowns in history before. The first time was under President Bill Clinton, when the first two shutdowns happened between the winter of 1995-1996 for a total of 26 days. Later in 2013, when Barack Obama was the president, the government shut down for 16 days due to a conflict over the ACA, a.k.a. Obamacare. Furthermore, in the year 2018 and early 2019, there was a partial shutdown due to a dispute over border wall funding, and this was reported to be the longest shutdown for 35 days under President Trump. However, there are no official estimates as to how long this shutdown might last, as it was reported a day ago that the plans to end the shutdown have failed for the 4th time in the Senate.