The United States entered its first federal shutdown since 2019 after the Senate rejected dueling stopgap bills, halting broad swaths of government while essential functions continue. The immediate fallout ranges from furloughs to delayed data releases, with no clear path to a deal.

Why The Funding Deal Collapsed

Republicans advanced a seven-week extension at current spending levels; Democrats blocked it while insisting on extending enhanced Affordable Care Act premium subsidies and reversing Medicaid cuts, leaving both proposals short of the 60 votes required. “We’re saying let’s fund the government. Let’s sit down and have a conversation,” said House Minority Leader Hakeem Jeffries, while Speaker Mike Johnson countered, “There’s nothing to negotiate.”

What Stays Open, What Slows Down

Life-and-property functions—air traffic control, TSA screening, border protection, in-hospital care, and most law enforcement—continue, but many staff work unpaid; national parks remain only partially open under contingency plans. Millions of federal employees and contractors face missed pay; programs like WIC may rapidly run low on funds if the impasse drags on, and key economic reports (including the jobs data) are expected to be delayed.

Politics And Markets

Republicans say Democrats are holding funding “hostage” to health-care demands; Democrats accuse the GOP of “plunging America into a shutdown” and vow to protect coverage.
Investors eyed the lapse warily: futures slipped and gold hit a record, as agencies warned of suspended research and a pause in closely watched economic releases while senators prepared repeat votes on the same plan.