On October 1, 2025, the federal government of the United States officially shut down due to the failure of negotiations between Congress and the White House regarding the funding of government operations. This is the first government shutdown since 2018 and the third shutdown during Donald Trump’s presidency.
This is reported by Finway
Causes and Consequences of the Budget Crisis in the US
The main cause of the budget crisis was the lack of agreement between Republicans, who control both chambers of Congress, and Democrats. To pass the budget, the Senate requires 60 votes, making support from both parties essential. Just hours before the deadline, senators rejected both Republican and Democratic versions of the bills, failing to reach a compromise. Democrats insist on increasing healthcare spending and extending Obamacare subsidies, while Republicans refuse to concede their positions.
As a result of the shutdown, about 750,000 federal employees are being sent home on unpaid leave each day. Other government workers, including transportation security personnel, air traffic controllers, law enforcement, and military members, are performing their duties without pay, but all will receive compensation once the shutdown ends. According to the Congressional Budget Office, daily economic losses amount to $400 million, and the costs of paying salaries during the shutdown will fall on taxpayers.
Political Disputes and Public Opinion
The question of who is responsible for the government shutdown is sparking heated debates. The White House expects blame to be placed on the Democrats. Donald Trump has previously mentioned the possibility of cutting a large number of federal employees during the shutdown.
“It will be difficult for Democrats to explain why they are not agreeing to a ‘clean’ bill to keep the government open,” said a White House official.
In response, Senate Democratic Minority Leader Chuck Schumer accused Republicans of creating the crisis, claiming they abandoned bipartisan negotiations and are jeopardizing the stability of the US healthcare system.
White House Budget Director Russell Vought officially issued an order to cease operations of federal agencies, noting in an internal memorandum that it is difficult to predict the duration of the shutdown due to the Democrats’ inflexibility.
Polls show a division of responsibility among Americans: according to The New York Times, 26% blame Trump and the Republicans, 19% blame the Democrats, 33% blame both parties, and 21% are undecided. A Marist University poll indicated that 38% of respondents hold Republicans responsible, 27% blame Democrats, and 31% blame both sides.
According to betting results from Polymarket, 64% predicted that the shutdown would begin before October 1, 2025.