First Government Shutdown Since 2018 Begins Amid Fierce Budget Battle Over Healthcare, Jobs, and Federal Spending
Overview: Why the Government Has Shut Down
The U.S. government has officially shut down for the first time since 2018, after Democrats blocked a Republican-backed stopgap funding bill that failed to include their healthcare demands. As the clock struck midnight, funding lapsed—and with it, much of the federal government ground to a halt.
This shutdown stems from a standoff over healthcare subsidies and federal spending, adding to a long history of budget battles in Washington. The last shutdown in 2018–2019 lasted 35 days—the longest in U.S. history. Analysts suggest this new one could surpass it in both scope and impact.
Essential vs. Non-Essential: Who Keeps Working, Who Doesn’t
When a government shutdown occurs, federal operations are split between “essential” (excepted) and “non-essential” services:
What Remains Functional During the Shutdown:
- Military personnel and essential federal workers will continue working without pay.
- Social Security and Medicare checks will still go out.
- In-hospital medical care, border protection, law enforcement, and air-traffic control services will operate as usual.
- Key government functions like NASA missions, FDA food safety oversight, and parts of Trump’s immigration policy enforcement will remain active.
What Gets Paused or Closed:
- Up to 750,000 federal employees may be furloughed (unpaid leave).
- National parks, government-funded pre-schools, and student loan processing may shut down.
- Immigration hearings, food assistance programs, and routine food inspections are at risk of disruption.
- New Social Security card issuance and benefit verifications may be paused.
Trump’s Role: Escalation Over Compromise
Former President Donald Trump has significantly raised the stakes. Ahead of the shutdown, he warned of mass layoffs if a deal wasn’t reached.
“We’ll be laying off a lot of people,” Trump told reporters. “They’re going to be Democrats.”
His administration is already overseeing the largest federal worker exodus in 80 years, with over 150,000 workers leaving due to a buyout, and tens of thousands more previously laid off.
Trump has also blocked billions in previously approved spending—fueling Democratic resistance to any temporary funding measures.
Economic Impact: How a Prolonged Shutdown Could Hurt Growth
While the broader U.S. economy may not feel an immediate sting, experts warn that a prolonged shutdown could:
- Reduce GDP growth by 0.1–0.2 percentage points per week
- Disrupt financial markets
- Delay travel, as unpaid TSA and air traffic workers may skip shifts
- Shake public confidence in federal institutions
Political Breakdown: Healthcare at the Center of the Crisis
This shutdown isn’t just about spending—healthcare is the core issue:
- Democrats demand any spending bill includes permanent subsidies under the Affordable Care Act (ACA), which are set to expire by year-end.
- Without those subsidies, healthcare costs for 24 million Americans—especially in GOP-led states like Florida and Texas—could skyrocket.
- Republicans accuse Democrats of holding the budget “hostage” to score political points before the 2026 midterm elections.
What’s Next: No End in Sight
There is currently no clear path to a compromise. Historically, Congress has shut down the government 15 times since 1981, usually for a few days. But if this standoff continues, it could rival or exceed the 2018-2019 shutdown in length and damage.
Key Takeaways: US Government Shutdown 2025
- Essential services remain open, but many federal workers will go unpaid.
- Non-essential operations are halted, including national parks, food assistance, and immigration processing.
- Economic risks rise with each passing week.
- Healthcare subsidies and political gridlock are at the heart of the fight.
- Trump’s threats of permanent layoffs and canceled programs intensify the crisis.
