What Is the US Government Shutdown in 2025 ? Here Are the Causes and Impacts

Liputan6.com, Jakarta The United States government is once again facing the serious threat of a government shutdown, potentially happening on October 1, 2025.

This situation arises from Congress' failure to pass necessary funding legislation before the start of the new fiscal year, as reported by CBS News.

Republicans have proposed extending government funding at current levels through November 21st so lawmakers can continue working on a full-year appropriations bill.

Democrats have counter-proposed keeping the government open until October, but adding health care provisions and restrictions on President Trump's ability to withhold funding, both of which most Republicans disagree with.

Both sides remain firm, raising the possibility of a government shutdown starting Wednesday.

Congressional leaders met with President Trump at the White House on Monday to seek a solution, but ultimately stood their ground.

Last-ditch efforts to reach a deal are underway, but time is running out as the September 30, 2025, deadline approaches.

Without a deal, federal operations will be partially halted, affecting millions of citizens and employees.

VP calls out Dems for holding government funding hostage to broken healthcare policies:“Everything they accuse of being broken about American healthcare is policy they supported for the past decade...we're headed into a shutdown because the Democrats won't do the right thing.” pic.twitter.com/TF0sRaB78g

— Vice President JD Vance (@VP) September 29, 2025

The US government faces another critical deadline at the end of September 2025, with a potential government shutdown beginning on October 1, 2025.

Congressman Shontel Brown stated, "Funding for the federal government currently expires on September 30.

This means that absent new legislation passed by Congress and signed into law, the federal government will enter a shutdown beginning at 12:01 AM on Wednesday, October 1, 2025."

Democrats are pushing for an extension of healthcare subsidies, while Republicans want to extend current funding levels for several weeks.

An attempt to pass a continuing resolution (CR) by the US House of Representatives on September 19, 2025, was rejected by the Senate, adding to the uncertainty.

The Office of Management and Budget (OMB) has issued a warning to federal agencies to prepare for the possibility of mass layoffs if a shutdown occurs.

A government shutdown in the United States occurs when Congress fails to pass a funding bill to fund the federal government.

This must be done before the next fiscal year, which begins on October 1st each year.

This failure causes many federal operations deemed "non-essential" to be temporarily suspended.

According to USAFacts, "A government shutdown occurs when Congress fails to pass or the president refuses to sign a spending bill to fund the federal government's operations."

During this period, services not deemed essential are halted.

Federal employees who are "non-essential" are furloughed or furloughed.

However, some government functions remain operational because they are considered essential, such as air traffic control and law enforcement.

Employees involved in these services remain on the job, but their paychecks are delayed until the shutdown ends.

A 2019 law guarantees retroactive pay for federal employees after the shutdown ends, but government contractors do not always receive the same guarantee. 

Government shutdowns typically stem from disagreements over federal budget allocations before the deadline.

The federal budget process in the US is complex, beginning with the President's budget proposal to Congress at the beginning of the year.

Next, the House and Senate budget committees draft budget resolutions that set spending targets.

The crux of the problem lies in the 12 annual appropriations bills that must be passed by Congress.

Each of these bills is responsible for funding a different government function.

Britannica explains, "In the United States, government shutdowns typically result from partisan disagreements over proposed funding levels in budgetary recommendations submitted to Congress."

If these bills are not passed, or if there is no temporary funding measure (a continuing resolution), a shutdown happens.

The impact of a government shutdown varies widely and the most affected groups is the approximately 2.2 million federal civilian workers.

Many of them will be furloughed or working without pay, as was the case with 800,000 federal workers during the 2019 shutdown.

Public services will also experience significant disruptions.

National parks and federal museums will close, impacting tourism and public access.

While essential programs like Medicare and Social Security are not directly affected, Social Security office services could be limited.

Food assistance programs like WIC and SNAP are also at risk of running out of funds if the shutdown lasts a long time.

Economically, a government shutdown could substantially reduce economic growth.

The Congressional Budget Office (CBO) estimated that the 2018-2019 shutdown cost the US economy $11 billion.

Since 1977, the United States has experienced 21 government shutdowns lasting at least one day.

CBS News reported, "There have been 14 shutdowns since 1980, with the most recent coming in 2018.

That shutdown lasted 34 days."The longest government shutdown occurred in early 2019 during the Donald Trump administration, lasting 34 days.

This shutdown was caused by a dispute over border wall funding. Other significant examples include the 21-day shutdown in 1995–1996 during the Bill Clinton administration, which was triggered by opposition to major spending cuts.

In 2013, the Barack Obama administration also experienced a 16-day shutdown.

The cause was a dispute over the implementation of the Affordable Care Act.