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Government Shutdown Takes Hold

The shutdown follows a stalemate over health care funding, with Democrats demanding extension of Affordable Care Act subsidies affecting 4 million people, and Republicans opposing Medicaid reversals.

  • On Wednesday, the United States federal government shut down at 12:01 a.m. ET, disrupting services and prompting agencies to prepare for mass layoffs, with about 750,000 workers furloughed if it continues.
  • A bitter spending deadlock over health care prompted the stalemate as Democrats in Congress demanded extending ACA subsidies and reversing Medicaid cuts, while both parties blocked each other’s stopgap bills.
  • Russ Vought, Office of Management and Budget Director, told House Republicans layoffs could begin within days as the OMB ordered agencies to prepare mass firings and the CBO projects 750,000 federal workers furloughed daily.
  • About 4 million people face potential loss of coverage next year, as essential workers will stay on duty but go unpaid, and the shutdown risks an economic jolt within days.
  • The White House is treating the shutdown as leverage to reshape government, framing it as a chance to cut programs it views as Democratic priorities while testing if President Donald Trump's gamble forces Democrats in Congress to compromise or Republicans in Congress to change course.
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  • 86% of the sources are Center
86% Center

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Defense One broke the news in Washington, United States on Tuesday, September 30, 2025.
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