U.S. Government Shutdown Enters Third Day Amid Budget Deadlock
The U.S. government shutdown has entered its third day after Republicans and Democrats failed to agree on a new spending bill. As a result, around 750,000 federal workers—roughly 40% of the workforce—are being placed on unpaid leave, and many public services are partially or fully closed.
While budget standoffs are common in U.S. politics, this one is especially tense. President Donald Trump, who has cut the size of government since taking office, has suggested the shutdown could lead to further reductions.
Why Did the Shutdown Happen?
The shutdown began when Congress missed the deadline to pass a funding bill. Although Republicans control both the House and Senate, they don’t have enough votes in the Senate to pass the bill without Democratic support.
Democrats are pushing to extend healthcare subsidies and protect Medicaid funding, while Republicans are focused on broader spending cuts. A temporary funding bill passed the House but failed in the Senate, triggering the shutdown at midnight on October 1.
What’s Affected?
Not all government services are shut. Essential services—like border control, air traffic control, and hospital care—will continue, though many workers won’t be paid during the shutdown. Social Security and Medicare checks will still go out, but some services like benefit verification may stop.
National parks, food aid programs, and museums could be closed or scaled back. Research at agencies like the CDC and NIH may be delayed, and travel disruptions are possible due to slower passport processing and fewer flight staff.
Federal contractors and non-essential government workers will miss work and pay until the shutdown ends.
What’s the White House Saying?
The Trump administration has embraced the shutdown more than past presidents, seeing it as a way to reduce government size and spending. Trump said layoffs could follow, calling many workers ”non-essential.”
Despite meeting with Congressional leaders, little progress has been made. Both parties blame each other for the deadlock.
How Long Could It Last?
It’s unclear. The shutdown will continue until both sides agree on a funding plan. Either side could make concessions—Republicans on healthcare spending, or Democrats on short-term funding—to reopen the government.
Past shutdowns ended when the pressure from the public and economic impact grew too large to ignore.
What’s the Economic Impact?
The longer the shutdown lasts, the greater the cost. Economists estimate it could slightly slow down economic growth each week it continues. The 2018–2019 shutdown cost the U.S. about $11 billion.
While the market hasn’t reacted strongly yet, permanent layoffs or delayed economic data could worsen the impact.
Featured image from: abcnews.com