US Government Shuts Down Due to Budget Crisis: Impacts on the Economy and Federal Employees

У США уряд зупинив роботу через бюджетну кризу

The federal government of the United States officially shut down on October 1, 2025, due to a lack of agreement between Congress and the White House on funding. This government shutdown became the third during Donald Trump’s presidency and the first since 2018.

This is reported by Business • Media

Causes of the Budget Crisis and Political Standoff

The Republican Party, which currently controls both chambers of Congress, failed to pass a government funding bill without support from Democrats — 60 votes are needed in the Senate. Both sides could not reach a compromise: senators rejected both Republican and Democratic proposals just hours before the final deadline. Democrats insist on increasing healthcare spending, particularly extending Obamacare subsidies, while Republicans claim that “hostage-taking” over budget disputes is unacceptable.

“It will be difficult for Democrats to explain why they are not agreeing to a ‘clean’ bill to keep the government open,” said a representative of the administration.

Impact of the Shutdown: Federal Employees, the Economy, and Public Reaction

According to estimates from the Congressional Budget Office, approximately 750,000 federal employees are forced to take unpaid leave daily, while hundreds of thousands — including transportation security agents, air traffic controllers, military personnel, and law enforcement representatives — are working without pay, awaiting compensation after the government reopens. The cost of payroll during the shutdown is expected to be around $400 million per day, significantly affecting the country’s economy.

The duration of the current shutdown is still unknown. During the previous budget crisis of 2018-2019, the U.S. government was closed for a record 35 days. President Trump suggests the possibility of laying off a significant portion of federal employees during this period, while the White House administration places the blame on Democrats. Meanwhile, Senate Democratic Minority Leader Chuck Schumer accuses Republicans of blocking bipartisan dialogue and endangering the healthcare system.

The official order to shut down federal agencies was signed by the director of the White House budget office, Russell Vought, who emphasized in a memorandum that predicting the duration of the shutdown is difficult due to the Democrats’ position.

Public opinion regarding the culprits of the budget crisis is divided. According to a New York Times poll, 26% of Americans blame Trump and the Republicans, 19% blame the Democrats, 33% believe both sides are at fault, and 21% are undecided. A Marist University study shows that 38% of respondents blame Republicans, 27% blame Democrats, and 31% blame both parties.

Previously, Polymarket users made predictions about the U.S. government shutdown, with 64% believing it would happen before October 1, 2025.