US government shutdown: Major federal offices face disruption – how it will affect millions

The US federal government shut down on Wednesday after President Donald Trump and Congress failed to reach an agreement on a spending bill.

Hundreds of thousands of federal workers will be sent home without pay, and many government offices may close temporarily or even for good, making this the first shutdown since 2019.

Six years ago, in a similar move, parts of the government were closed for 35 days over a standoff between Congress and Trump regarding funding for a wall on the southern border. However, this time it is more critical, as the dispute centres on Democrats’ demands to extend expiring healthcare subsidies and reverse Medicaid cuts included in Trump’s tax and domestic policy law.

With Democrats and Republicans pointing fingers at each other over the crisis, it has further shaken the spirit of American democracy in one of the world’s most powerful nations.

What led to the shutdown?
The shutdown became unavoidable after Senate Democrats blocked a Republican plan to keep the government funded until November 21. Republicans then rejected the Democratic proposal, which would have extended funding through the end of October and added more than $1 trillion for healthcare. With both sides refusing the other’s plan, no funding agreement could pass, leading to the shutdown.

Senate votes reflected deep partisan divides. The GOP measure fell 55-45, short of the 60 votes needed, while the Democratic plan failed 53-47. Following the votes, White House budget director Russell Vought instructed federal agencies to “execute their plans for an orderly shutdown.”


Why is 2025 shutdown more serious?
Roughly 750,000 federal employees are expected to be furloughed, with some facing permanent layoffs. Essential workers, including air traffic controllers, TSA personnel, military members, and ICE agents, will continue to work but will go unpaid until the shutdown ends. Social Security, Medicare, and Medicaid payments will continue, although some related services could be slowed.

The Pentagon has warned that about 2 million active-duty troops, including National Guard members deployed in US cities, could be forced to work without pay. The military will prioritise operations such as border security, missile shield construction, and critical munitions production. "Military personnel on active duty, including reserve component personnel on Federal active duty, will continue to report for duty and carry out assigned duties," the Pentagon plan said.

The White House’s Office of Management and Budget (OMB) has warned agencies to prepare not only for temporary furloughs but also for permanent layoffs if a shutdown occurs. The memo directs agencies to issue reduction-in-force notices for programs whose funding would lapse and are “not consistent with the president’s priorities.” The OMB has previously led efforts to reduce the federal workforce as part of a broader government efficiency campaign associated with Elon Musk’s so-called “department of government efficiency.”


Major federal offices, institutions face chaotic disruption

• The FDA may halt pre-market safety reviews for animal food, meaning meat, milk, and eggs could be at risk.
• The department of health and human services will furlough around 32,460 of its 47,257 employees.
• The centers for disease control and prevention will retain only 36% of staff, while the National Institutes of Health will keep 24%, many without pay.
• The justice department will continue essential functions but civil litigation and some immigration hearings could be postponed.
• Labor Department data collection will be stalled, including the upcoming jobs report.
• WIC programmes, which support low-income women and children, could face funding shortages if the shutdown lasts more than a week.
• National parks and Smithsonian museums may close, while federal courts could reduce operations.
• The US Supreme Court will continue functioning, as justices’ pay cannot be cut by law.
• Federal employees responsible for executing layoffs will continue working during the shutdown, and furloughed employees will be allowed to access government computers to receive notices.

'Getting rid of Democratic things': Trump

The US president said the shutdown is beneficial because it will help in "getting rid of Democrat things."

Speaking from the White House on Tuesday, the MAGA leader said, "We can get rid of a lot of things that we didn't want, and they'd be Democrat things." He also warned of “things that are irreversible, that are bad,” which could include layoffs of federal employees.

This is the third government shutdown during Trump’s presidency. He has repeatedly highlighted the shutdown as leverage against Democrats, including issuing threats to punish federal employees and advance his policy agenda. Democrats, meanwhile, have focused on healthcare funding and maintaining the Affordable Care Act subsidies, an issue where polls indicate public support.

Observers warn that the economic fallout could be severe. During the 2018–2019 shutdown, the Congressional Budget Office estimated that roughly $3 billion in economic activity was lost and never recovered.

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