Why the US government might shut down and when it might happen

September 30, 2025

The U.S. government faces an imminent shutdown at midnight Tuesday unless Republicans and Democrats can reach an agreement on a spending bill. Democrats are leveraging their Senate position to demand healthcare policy changes, including extending tax credits that reduce insurance costs and reversing Trump's Medicaid cuts. This shutdown threat is particularly significant as the Trump administration has spent nine months drastically reducing government size and appears willing to use a shutdown to identify "non-essential" workers for permanent removal.

Who is affected

Government employees deemed "non-essential" who would be temporarily placed on unpaid leave
Americans who rely on health insurance tax credits and Medicaid
Users of government services including food assistance programs, federally-funded pre-schools, student loans, and national parks
Travelers who could experience delays if unpaid workers stop showing up
The broader U.S. economy, which could experience secondary impacts from a prolonged shutdown

What action is being taken

Congressional leaders and President Trump are holding meetings to negotiate a solution
A stopgap bill has passed in the House but has not yet cleared the Senate
Both parties are engaging in last-ditch efforts to avoid a repeat of previous shutdowns
Democrats are pushing for extending tax credits for health insurance and reversing Medicaid cuts
The Trump administration is maintaining its position without offering substantive concessions

Why it matters

This would be the first government shutdown in nearly seven years
The Trump administration may use the shutdown to accelerate its massive government workforce and spending reductions
The previous longest shutdown under Trump reduced economic output by $11 billion, with $3 billion never regained
Essential services like border protection and air traffic control would continue while programs like food assistance and national parks would be curtailed
The political dynamics between Democrats and Republicans highlight the unique American budget system where divided branches of government must reach spending agreements

What's next

No explicit next steps stated in the article

Read full article from source: BBC