The United States has plunged into a fresh political and economic crisis as a government shutdown takes effect following the failure of President Donald Trump and Congress to agree on a funding plan before Wednesday’s midnight deadline. The U.S. government shutdown is expected to furlough about 750,000 federal workers, with Trump warning of “irreversible” actions as he presses ahead with his second-term agenda.
Essential services such as the Pentagon and Department of Homeland Security will continue, but many agencies face closures, with federal workers bracing for unpaid leave or potential job losses. “We don’t want it to shut down,” Trump said, yet no compromise was reached after days of stalled talks between Democrats and Republicans.
This marks the third government funding lapse under Trump, the first since his return to the White House, underscoring deep partisan divides. Democrats, unusually for the party, have insisted on forcing the issue, demanding funding for Affordable Care Act subsidies that keep health insurance affordable for millions. Republicans, bolstered by Trump, have refused to negotiate until after the shutdown, saying Democrats are attempting to derail his wider agenda.
Vice President JD Vance acknowledged the strain, telling Fox News, “It’s craziness, and people are going to suffer because of this,” citing risks to food assistance, flight safety, and military pay. Analysts warn the economic impact could ripple quickly. A former White House budget official, Rachel Snyderman, said shutdowns “only inflict economic cost, fear and confusion across the country.”
Markets have historically weathered shutdowns, but with no clear end in sight, uncertainty looms. Goldman Sachs analysts noted the situation offers “few good analogies” given the absence of negotiation pathways. Already, agencies have begun implementing plans not only for furloughs but also mass firings, as Trump’s administration seeks to permanently shrink government.
Smithsonian museums are expected to stay open through Monday, but national parks could be closed for safety reasons. While health programmes such as Medicare and Medicaid will continue, staffing shortages may delay services.
The political standoff reflects broader tensions in Washington. Senate Democrats, led by Chuck Schumer, are under pressure from voters to hold firm, while Republicans, with a narrow Senate majority, insist Democrats are prioritising politics over governance. “They want to fight Trump,” House Speaker Mike Johnson said, blaming Democrats for the shutdown.
Trump, meanwhile, has made clear that his administration could target programmes important to Democrats, threatening to cut initiatives that “they like” as part of his strategy. The situation has drawn comparisons with previous shutdowns, including the record 35-day lapse during Trump’s first term over border wall funding and the 16-day closure in 2013 under President Obama.
With no resolution in sight, millions of Americans face the fallout, from delayed paycheques to disrupted services. As Snyderman observed, “What the government spends money on is a demonstration of our country’s priorities.” For now, the U.S. government shutdown exposes how fractured Washington has become, with ordinary citizens caught in the crossfire.
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