Government Shutdown Begins, So What Now?: Starting Line

Oct. 1, 2025, 11:00 AM UTC

The federal government shut down as of 12:01 a.m. For more news on the effects of the shutdown, click here or scroll down.

How Long Will This Be Going On?

So now what?

There was a lot of talking into microphones yesterday, but no apparent talks among the principals actually resolving the dispute.

Amid cries of “Mr. Speaker!”, House Democrats caused a minor kerfuffle by trying to get votes going in a pro forma session yesterday. That failed. The Senate, in turn, failed to get the required 60 votes on a spending plan. And President Donald Trump again mused about lots of people losing their jobs but said that “a lot of good” may come from the shutdown.

Both sides are holding fast to their positions. Republicans continue to say they won’t negotiate until the government is reopened, and Democrats appear to view this as an opportunity to go without a working government to take a stand against certain Trump policies.

For now, federal agencies have been ordered to execute their shutdown plans. As many as 750,000 federal workers could be temporarily furloughed, even if Trump doesn’t proceed with permanent dismissals, according to a CBO estimate.

And how long will this last? The Senate will hold another round of votes today on stopgap measures. Sen. John Barrasso (R-Wyo.) said there won’t be votes between sundown today and sundown tomorrow to allow members to observe Yom Kippur. Find more details in our BGOV Budget and Congress Tracker newsletters.

Maeve Sheehey
Maeve Sheehey

Watch Maeve Sheehey talk about the different shutdown strategies from House leaders.

Shutdown Latest

Trump, Democrats Grapple for Edge as Government Shutdown Begins

Hours into the US government shutdown, the standoff is already shaping up as a political quagmire for all involved.

What a Government Shutdown Means: 750,000 Feds on Furlough

The US government is shutting down, with agencies activating contingency plans that sideline hundreds of thousands of federal workers and halt a wide range of services.

Shutdown Will Cost $400 Million Daily in Back Pay, CBO Says

Furloughed federal workers who are sidelined during a government shutdown could cost about $400 million for each day agencies are shuttered, a total they’re slated to receive as back pay, the Congressional Budget Office told lawmakers Tuesday.

Trump Says ‘A Lot of Good’ Could Come From Government Shutdown

President Donald Trump said “a lot of good” could stem from a government shutdown, threatening to oust federal workers and eliminate programs that are favored by Democrats if Congress doesn’t meet a midnight funding deadline.

Traders’ Guide to US Markets as US Government Shuts Down

Global investors are bracing for the fallout from the US government’s latest shutdown after Congress failed to reach an agreement on funding operations.

Deferred Resignations Will Proceed Even With Shutdown, OPM Says

Federal employees who accepted a resignation incentive will be unemployed starting tomorrow, even if there is a government shutdown, according to the Office of Personnel Management.

Senate Office Funds, Activities to be Curtailed During Shutdown

Senators and their staff are preparing for a government shutdown that could limit work, travel and services available on Capitol Hill.

Unions Sue Over Possible Government Layoffs During Shutdown

Federal worker unions are suing over what they contend are the Trump administration’s unlawful threats of mass firings if Republicans and Democrats in Congress can’t reach a budget deal by midnight, forcing the US government to shut down.

Air Traffic Controllers to Work Without Pay in DOT Shutdown Plan

The US Transportation Department plans to insulate air traffic control services and training for new employees from a government shutdown, keeping vital aviation functions running even as the impasse over spending threatens to paralyze many other federal operations.

EPA Plans to Suspend 90% of Operations in Government Shutdown

The EPA would shrink by some 90% in case of a government shutdown, which could happen at midnight on Tuesday, according to a new agency plan.

K Street Still Open for Business as Clients Seek Shutdown Advice

The K Street lobbying corridor will stay open for business in a government shutdown with campaigns for clients, from Wall Street banks to airlines and federal contractors, taking new urgency.

How a Shutdown Will Hit the IRS and Tax Law Rules, Explained

Lawmakers failed to reach a deal before midnight to keep the government funded, but the IRS game plan provides for five days of “normal” operations, with all current staff on board.

National Flood Insurance Program Lapses as Government Shuts Down

The government shutdown means FEMA can’t provide new flood insurance contracts with two months left in the Atlantic hurricane season.

Cyber Threat Information-Sharing Law Lapses as Shutdown Begins

The Cybersecurity and Information Sharing Act of 2015 has provided a shield encouraging companies to report breaches and threats without fear of liability.

Federal Drone-Fighting Powers Expire as Government Shuts Down

The drone-fighting power is part of sweeping collateral damage from the failed funding negotiations.

Telehealth Authorities Lapse, Cutting Off Access for Seniors

Seniors face losing teleheath appointments as Congress fails to pass a stopgap spending bill by the end of the fiscal year Sept. 30.

Chips, Export Control Programs Continue as Government Shutters

The Trump administration is poised to continue semiconductor funding, enforcing export controls and other critical technology and telecommunications programs despite a government funding lapse that will furlough tens of thousands of workers.

Who’s to Blame?

Political fallout from the shutdown could be widespread for both Trump and Democrats ahead of next year’s critical midterm elections. Leaders of both parties are focusing their public comments on blaming each other.

Check out this graphic to see where the public stands.

Also Read:

They Said It

“Don’t get complacent because things are still happening.”

John Feehery, a former House GOP leadership aide who is now a lobbyist at EFB Advocacy, speaking about K Street during a shutdown.

‘You Can Leave’

Trump’s pep talk with military leaders yesterday was, as is true of most things in this administration, highly unusual. The meeting itself was something that hasn’t been done in recent history — gathering leaders across the military from their stations around the world. Then Trump spoke mostly about politics.

He repeated claims of resolving seven wars, criticized the “corrupt” media, and pledged to root out political correctness — sounding more like a rally than a traditional address by the commander-in-chief to his top military leaders.

After telling reporters before he left the White House that he was prepared to “fire ‘em right on the spot” if he didn’t like any of the leaders, Trump offered a little less aggression at the event. “If you don’t like what I’m saying, you can leave the room,” Trump said to some laughter from the crowd. He also suggested the military should use dangerous US cities “as training grounds.”

Watch Trump’s remarks.

Before You Go

Not Your Nomination: The White House pulled nominations for EJ Antoni to lead the Bureau of Labor Statistics and for Brian Quintenz to serve as the Commodity Futures Trading Commission chair.

Grand Jury Shopping: A Washington federal magistrate judge called a DOJ decision to turn to another grand jury when it failed to get an initial indictment “unseemly” and possibly “unlawful.” US Attorney Jeanine Pirro, whose office is handling the prosecution, called the judge an “activist.”

$60 Butter: Americans are increasingly willing to splurge on fancier, fattier butter — prized for its richer flavor and velvety-smooth mouthfeel. A bumpy economy and high inflation have pushed grocery prices up roughly 25% in the last five years, but people with money to spend are still shelling out on little luxuries, like cult favorite Animal Farm Creamery butter at $60 a pound.

Finding Investors: South Korean President Lee Jae Myung vowed to invest in securing advanced weaponry and military technologies with an increased defense budget next year as Trump pressures allies to raise outlays on security to reduce the burden on the US.

Negotiations 1: Trump said on Tuesday his administration is close to finalizing a deal with Harvard University for $500 million. The agreement would potentially defuse one of the highest-profile fights between his administration and US higher education.

Negotiations 2: Members of Hamas’s political wing met officials from Qatar, Egypt, and Turkey in Doha on Tuesday as part of the militant group’s deliberations over a US peace plan for Gaza, according to a person familiar with the matter.

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To contact the reporter on this story: Tina Davis at tdavis@bloombergindustry.com

To contact the editors responsible for this story: Rachel Leven at rleven@bloombergindustry.com; Herb Jackson at hjackson@bloombergindustry.com

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