WASHINGTON: The federal government of the United States entered a shutdown at 12:01 a.m. (ET) today after Congress and the White House failed to reach an agreement on spending legislation ahead of the fiscal year deadline.
It is the first shutdown since 2019, triggered by a partisan standoff over federal funding levels, healthcare subsidies and proposed program cuts.
As many as 750,000 federal employees are expected to be furloughed, while others in “essential” roles — such as air traffic control, law enforcement and military operations — will be required to work without pay.
Key services like Social Security, Medicare and national defense will continue, though agencies warn of slower operations due to limited staffing and resources.
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Federal buildings across the country are set to close, and government contracts could be halted or delayed, potentially disrupting major infrastructure and research projects.
Economists warn of ripple effects, including reduced consumer spending, financial market volatility and setbacks for local economies reliant on federal activity.
Lawmakers are expected to reconvene later this week in an effort to break the deadlock, but with both parties deeply entrenched, there is no clear timeline for reopening the government. Prolonged shutdowns are known to erode public trust and place severe financial strain on government workers and contractors.
