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US Federal Government Shutdown 2025: What It Means, Impact, History And Effects On Americans As Donald Trump Sets Deadline

US Federal Government Shutdown: President Donald Trump has warned Democrats of “irreversible” steps if Congress fails to avert a shutdown by midnight, with Republicans proposing a short-term funding plan rejected by Democrats over healthcare and aid demands, as federal agencies prepare contingency plans, including layoffs and service disruptions.

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Published by Zubair Amin
Published: October 1, 2025 03:32:46 IST

US Federal Government Shutdown: President Donald Trump on Tuesday threatened to take “irreversible” steps if congressional Democrats allow a partial government shutdown at midnight.

“We can do things during the shutdown that are irreversible that are bad for them and irreversible by them, like cutting vast numbers of people out, cutting things that they like, cutting programs that they like,” Trump told reporters in the Oval Office.

According to the Associated Press, Washington is hours away from a potential shutdown, set to begin at 12:01 a.m. Wednesday unless Congress passes a funding bill.

Republicans have put forward a short-term plan to keep the government running until November 21. Democrats have rejected the proposal, demanding that it address health care by reversing Medicaid cuts passed under Trump’s legislation this summer and extending Affordable Care Act tax credits.

Republicans have refused these conditions.

Donald Trump Warns of Federal Government Shutdown

Trump pointed to White House budget director Russell Vought, saying he has become “very popular recently because he can trim the budget to a level that you couldn’t do any other way.” The president added, “So they’re taking a risk by having a shutdown.”

Also Read: What Is TrumpRx? Donald Trump Announces Pfizer Drug Price Cuts That Slash Costs Up To 100%

He further warned, “[In a shutdown,] we can do things medically and other ways, including benefits, we can cut large numbers of people. We don’t want to do that, but we don’t want fraud, waste and abuse.”

US Government Shutdown: White House Orders Agencies to Prepare Cuts

Last week, the Office of Management and Budget, led by Vought, directed federal agencies to prepare to permanently dismiss employees in non-essential roles if a shutdown occurs.

The threatened reductions in force (RIFs) have not deterred Senate Democrats, who are pushing to extend pandemic-era enhanced subsidies for roughly 22 million people who purchased private insurance through Obamacare exchanges.

Democrats have also sought to revive funding for foreign aid and for federally supported radio and television programs that were cut earlier this year.

US Shutdown: Federal Workers Guaranteed Notice Period

The Office of Personnel Management (OPM) clarified that mass layoffs would not immediately affect income, citing a mandatory 60-day notice period.

“Any RIF notice issued shortly before or after the lapse in appropriations that commences on October 1, 2025, will generally provide for a full 60-day notice period during which employees will retain employment status,” the OPM stated.

What Happens If the Government Shuts Down?

In the event of a shutdown, federal agencies must suspend operations and place non-essential employees on unpaid leave. Workers classified as “excepted” -those responsible for protecting life and property —-will continue working but without pay until funding is restored.

During Trump’s first-term shutdown, about 340,000 of 800,000 federal workers were furloughed.

Essential services remain in operation. FBI agents, CIA officers, air traffic controllers, TSA staff, and the Armed Forces continue working. Programs funded through mandatory spending, such as Social Security and Medicare, are unaffected. Seniors can still see doctors and submit claims, while VA hospitals, clinics, and benefits processing remain active. National cemetery burials also continue.

The US Postal Service remains unaffected, as it operates on self-generated revenue rather than federal funding.

Previous Shutdowns Under Donald Trump

Trump’s first term saw three government shutdowns. The longest lasted 36 days, ending in January 2019, after disputes over funding for a border wall with Mexico. The Congressional Budget Office estimated the shutdown reduced economic output by $11 billion, of which $3 billion was never recovered.

Each agency decides what to suspend or continue. During the 2018–2019 shutdown, the Trump administration selectively reopened offices, sometimes stretching the rules to keep critical services running, according to a BBC report.

By comparison, President Ronald Reagan faced eight shutdowns during the 1980s, though they were far shorter in duration.

Impact of Shutdown on Travel and Public Services

According to CNN, flights will continue operating during a shutdown. However, the aviation sector could face pressure since most air traffic controllers and TSA staff would be required to work without pay. Many could quit, resulting in staff shortages and long security lines, as seen in past shutdowns.

Consular services, both in the U.S. and abroad, will not be affected. Visa appointments and scheduling will proceed as planned.

Also Read: WATCH: Donald Trump Reveals His Favorite Word In English, Calls It Beautiful, And It Has A Surprising Link To India

Published by Zubair Amin
Published: October 1, 2025 03:32:46 IST

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