24 hours into the latest US government shutdown, the political deadlock shows no sign of easing, as Republicans and Democrats remain locked in a tussle over health care funding. The impasse has forced hundreds of thousands of federal workers off the job, while iconic national sites from the Liberty Bell in Pennsylvania to Pearl Harbour in Hawaii have been shuttered.
At the heart of the dispute is a fight over whether subsidies under the Affordable Care Act should be extended. Democrats insist the support is vital to prevent insurance premiums from spiking, while Republicans argue that the spending bill must not include what they frame as “handouts” connected to immigration and health care.
Here are 10 key points about US govt shutdown :
Why the shutdown happened
The shutdown stems from a deadlock between Senate Democrats and President Donald Trump ’s Republican majority. Democrats refused to support a short-term spending bill unless it included funding to extend subsidies under the Affordable Care Act.
They argue that without them, millions of families face sharp rises in health insurance premiums. Republicans, however, have labelled this an unacceptable expansion of Obamacare. President Trump has insisted he will not be “held hostage” by Democrats tying broader healthcare demands to government funding.
Also read: The impact on America’s workforce - explained in numbers
While some moderate senators have signalled openness to talks, neither side has budged. With no compromise reached before the deadline, the government’s funding lapsed, triggering the current shutdown.
How much it is costing per day
According to the Congressional Budget Office, the shutdown is costing roughly $400 million every single day. Around 750,000 federal workers are furloughed, while “essential” staff such as military personnel, border security, and air traffic controllers are working without pay.
The economic costs come not only from lost wages but also from suspended government contracts, delayed projects, and reduced consumer spending. For every day of closure, billions in federal payments for services, research, and local projects are put on hold. Even a short shutdown can damage investor confidence, weaken growth, and disrupt critical services. The longer it continues, the harder it becomes for the economy to recover quickly.
The political blame game
Both parties are pointing fingers. The Trump administration has accused Democrats of putting “illegal immigrants’ healthcare before the American people,” a claim Democrats call false. Vice President JD Vance amplified the attack in the White House briefing room, even as House Democratic leader Hakeem Jeffries accused Republicans of playing politics with people’s livelihoods. Chuck Schumer, the Senate Democratic leader, said Trump is “using the American people as pawns.” The clash has even descended into online memes, with Republicans using doctored videos of Democrats and Jeffries firing back with satirical images of Vance. Beneath the mockery lies a serious deadlock with little sign of compromise.
What federal workers face
The immediate impact is being felt by nearly three-quarters of a million federal workers. Many have been furloughed without pay, while others—deemed essential—are required to keep working with the promise of back pay once the shutdown ends. However, President Trump has suggested that this time furloughs could be used as a pretext for permanent layoffs. That prospect has fuelled anxiety among workers already hit by mass cuts across departments such as Education , which has seen its staff halved since Trump returned to office. For families living paycheque to paycheque, even a few missed weeks of salary could prove devastating.
Impact on services and daily life
Essential services such as the military, Medicare and Medicaid continue, but many civilian services are either suspended or disrupted. National parks, museums, and monuments have closed, from the Gateway Arch in Missouri to the John F. Kennedy Library in Boston.
Families visiting Pearl Harbour have been turned away, while popular parks such as Acadia in Maine remain deserted without staff. Civil rights investigations in schools are paused, and federal grantmaking has halted. For ordinary citizens, this translates into everything from missed student aid processing to cancelled tours, and for businesses it means suspended contracts and delayed payments.
Effects on air travel and safety
Aviation has become one of the most visibly affected sectors. Over 13,000 air traffic controllers and thousands of other aviation safety staff are working without pay. The Department of Transportation confirmed that 11,300 of its 44,800 employees have been furloughed, affecting rulemaking, inspections, and oversight. Aviation unions warn that fatigue and morale issues could compromise safety if the shutdown continues. In the past, prolonged shutdowns saw increased delays and staffing shortages at airports. Key upgrades to the air traffic control system have also been postponed. Airlines warn that passengers and the industry at large will bear the brunt of political deadlock.
Economic fallout and market jitters
The shutdown has rattled financial markets. On Wall Street, the S&P 500 and Dow Jones each fell 0.6% immediately after funding lapsed, while global markets reacted cautiously. Investors fear disruption to key data releases, including the monthly jobs report, which could be delayed. In 2018–19, a 35-day shutdown cost the economy $3 billion in lost GDP; analysts warn the toll this time could be higher if it drags on. Beyond direct costs, the uncertainty weakens business confidence, delays investment, and threatens consumer spending. As Rachel Snyderman of the Bipartisan Policy Centre said: “Shutdowns inflict economic cost, fear and confusion across the country.”
Lessons from past shutdowns
The last major shutdown, under Trump in 2018–19, stretched for 35 days—the longest in history. That standoff, over border wall funding, eventually ended under public pressure after airport chaos and unpaid workers dominated headlines. Earlier shutdowns in 2013 and 2018 also showed how difficult it is to extract concessions. In each case, the political side seen as intransigent bore the brunt of public blame. This time, polls suggest Americans oppose shutdowns regardless of political goals. About one-third of voters blame both parties equally, but Trump and Republicans could face heightened risk as the party in power.
Impact on education and students
The Department of Education, already weakened by layoffs, has furloughed nearly 90% of its workforce. While student aid and federal loan disbursements will continue, investigations into civil rights complaints in schools are frozen, and new grants cannot be issued. Programmes such as Impact Aid, which supports school districts near military bases or federal land, could soon face delays. Head Start preschools, run by Health and Human Services, remain largely unaffected for now, but several centres risk losing funding if the shutdown extends beyond a month. Parents reliant on subsidised childcare may struggle, affecting both education and employment.
What happens next
The path out of the shutdown is uncertain. Republican leaders, including Senate Majority Leader John Thune and Speaker Mike Johnson, insist they will not allow spending to resume without healthcare concessions. Democrats, meanwhile, argue that funding the government should not be conditional on rolling back health subsidies. Some moderate senators from both parties are in talks, but the gulf remains wide. If the shutdown drags on for weeks, it risks not just economic damage but also permanent cuts, as Trump has openly suggested using the crisis to downsize the federal workforce.
At the heart of the dispute is a fight over whether subsidies under the Affordable Care Act should be extended. Democrats insist the support is vital to prevent insurance premiums from spiking, while Republicans argue that the spending bill must not include what they frame as “handouts” connected to immigration and health care.
Here are 10 key points about US govt shutdown :
Why the shutdown happened
The shutdown stems from a deadlock between Senate Democrats and President Donald Trump ’s Republican majority. Democrats refused to support a short-term spending bill unless it included funding to extend subsidies under the Affordable Care Act.
They argue that without them, millions of families face sharp rises in health insurance premiums. Republicans, however, have labelled this an unacceptable expansion of Obamacare. President Trump has insisted he will not be “held hostage” by Democrats tying broader healthcare demands to government funding.
Also read: The impact on America’s workforce - explained in numbers
While some moderate senators have signalled openness to talks, neither side has budged. With no compromise reached before the deadline, the government’s funding lapsed, triggering the current shutdown.
How much it is costing per day
According to the Congressional Budget Office, the shutdown is costing roughly $400 million every single day. Around 750,000 federal workers are furloughed, while “essential” staff such as military personnel, border security, and air traffic controllers are working without pay.
The economic costs come not only from lost wages but also from suspended government contracts, delayed projects, and reduced consumer spending. For every day of closure, billions in federal payments for services, research, and local projects are put on hold. Even a short shutdown can damage investor confidence, weaken growth, and disrupt critical services. The longer it continues, the harder it becomes for the economy to recover quickly.
The political blame game
Both parties are pointing fingers. The Trump administration has accused Democrats of putting “illegal immigrants’ healthcare before the American people,” a claim Democrats call false. Vice President JD Vance amplified the attack in the White House briefing room, even as House Democratic leader Hakeem Jeffries accused Republicans of playing politics with people’s livelihoods. Chuck Schumer, the Senate Democratic leader, said Trump is “using the American people as pawns.” The clash has even descended into online memes, with Republicans using doctored videos of Democrats and Jeffries firing back with satirical images of Vance. Beneath the mockery lies a serious deadlock with little sign of compromise.
What federal workers face
The immediate impact is being felt by nearly three-quarters of a million federal workers. Many have been furloughed without pay, while others—deemed essential—are required to keep working with the promise of back pay once the shutdown ends. However, President Trump has suggested that this time furloughs could be used as a pretext for permanent layoffs. That prospect has fuelled anxiety among workers already hit by mass cuts across departments such as Education , which has seen its staff halved since Trump returned to office. For families living paycheque to paycheque, even a few missed weeks of salary could prove devastating.
Impact on services and daily life
Essential services such as the military, Medicare and Medicaid continue, but many civilian services are either suspended or disrupted. National parks, museums, and monuments have closed, from the Gateway Arch in Missouri to the John F. Kennedy Library in Boston.
Families visiting Pearl Harbour have been turned away, while popular parks such as Acadia in Maine remain deserted without staff. Civil rights investigations in schools are paused, and federal grantmaking has halted. For ordinary citizens, this translates into everything from missed student aid processing to cancelled tours, and for businesses it means suspended contracts and delayed payments.
Effects on air travel and safety
Aviation has become one of the most visibly affected sectors. Over 13,000 air traffic controllers and thousands of other aviation safety staff are working without pay. The Department of Transportation confirmed that 11,300 of its 44,800 employees have been furloughed, affecting rulemaking, inspections, and oversight. Aviation unions warn that fatigue and morale issues could compromise safety if the shutdown continues. In the past, prolonged shutdowns saw increased delays and staffing shortages at airports. Key upgrades to the air traffic control system have also been postponed. Airlines warn that passengers and the industry at large will bear the brunt of political deadlock.
Economic fallout and market jitters
The shutdown has rattled financial markets. On Wall Street, the S&P 500 and Dow Jones each fell 0.6% immediately after funding lapsed, while global markets reacted cautiously. Investors fear disruption to key data releases, including the monthly jobs report, which could be delayed. In 2018–19, a 35-day shutdown cost the economy $3 billion in lost GDP; analysts warn the toll this time could be higher if it drags on. Beyond direct costs, the uncertainty weakens business confidence, delays investment, and threatens consumer spending. As Rachel Snyderman of the Bipartisan Policy Centre said: “Shutdowns inflict economic cost, fear and confusion across the country.”
Lessons from past shutdowns
The last major shutdown, under Trump in 2018–19, stretched for 35 days—the longest in history. That standoff, over border wall funding, eventually ended under public pressure after airport chaos and unpaid workers dominated headlines. Earlier shutdowns in 2013 and 2018 also showed how difficult it is to extract concessions. In each case, the political side seen as intransigent bore the brunt of public blame. This time, polls suggest Americans oppose shutdowns regardless of political goals. About one-third of voters blame both parties equally, but Trump and Republicans could face heightened risk as the party in power.
Impact on education and students
The Department of Education, already weakened by layoffs, has furloughed nearly 90% of its workforce. While student aid and federal loan disbursements will continue, investigations into civil rights complaints in schools are frozen, and new grants cannot be issued. Programmes such as Impact Aid, which supports school districts near military bases or federal land, could soon face delays. Head Start preschools, run by Health and Human Services, remain largely unaffected for now, but several centres risk losing funding if the shutdown extends beyond a month. Parents reliant on subsidised childcare may struggle, affecting both education and employment.
What happens next
The path out of the shutdown is uncertain. Republican leaders, including Senate Majority Leader John Thune and Speaker Mike Johnson, insist they will not allow spending to resume without healthcare concessions. Democrats, meanwhile, argue that funding the government should not be conditional on rolling back health subsidies. Some moderate senators from both parties are in talks, but the gulf remains wide. If the shutdown drags on for weeks, it risks not just economic damage but also permanent cuts, as Trump has openly suggested using the crisis to downsize the federal workforce.
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