US Government Officially Shuts Down

The United States federal government officially shut down at 12:01 a.m. Eastern on Wednesday after the Senate failed to pass a short-term funding measure. This marks the first lapse since 2019 and the 15th shutdown since 1981. The stoppage follows stalled negotiations between President Donald Trump and congressional leaders, coming hours after senators rejected a Republican stopgap bill to extend funding through November 21. Essential operations like national security continue, while many federal employees face furloughs, and services such as research, permitting, and customer support are paused.

The Senate vote failed 55–45, short of the 60 votes needed to overcome a filibuster. Republicans control both chambers but needed Democratic support, which was withheld over demands to include health-care provisions. Federal agencies implemented contingency plans, with up to 750,000 workers affected and government economic data releases delayed.

Markets reacted quickly: gold rose, U.S. equity futures fell, and the dollar weakened amid uncertainty over delayed economic reports and interest-rate outlooks.

The White House framed the shutdown as leverage for restructuring federal programs, issuing guidance for agencies to consider reductions in force. Democrats accused the administration of using the lapse to push policy goals, while Republicans called their bill a “nonpartisan” measure to maintain funding.

Government services are widely disrupted. The Smithsonian and National Zoo are closed, NIH and CDC research curtailed, and federal permitting slowed. TSA and FAA staff remain on duty without pay, while Social Security continues since it’s funded outside annual appropriations.

The standoff centers on health-care funding and control over appropriations. Democrats demand ACA premium subsidies and safeguards against executive impoundments, while the administration pursues broader spending priorities.

The shutdown’s duration remains uncertain, dependent on whether the Senate can reach 60 votes and negotiate compromises, leaving millions of Americans facing delayed services, unpaid federal employees, and disrupted programs.