US government shuts down after budget clash over healthcare

By Al Mayadeen English
Source: Agencies
1 Oct 2025 08:24

The US government has shut down after Congress and President Donald Trump failed to reach a budget deal, with Democrats demanding restored healthcare funding and Trump vowing to use the impasse to cut "Democrat programs."

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The US Capitol is photographed after a news conference, Tuesday, September 30, 2025, at the Capitol in Washington. (AP Photo/Mariam Zuhaib)

The United States government entered a shutdown early Wednesday after negotiations between President Donald Trump and lawmakers failed to produce a budget agreement, with disputes centered on Democratic demands for expanded health care spending.

Federal operations began closing at 12:01 am after the Senate was unable to approve a stopgap measure that had already cleared the House of Representatives.

The impasse leaves hundreds of thousands of government employees facing furloughs or unpaid work until a compromise is reached.

Blaming Democrats for the deadlock, Trump warned that the shutdown could be used to reshape federal priorities in ways that would undercut his political rivals.

"So we’d be laying off a lot of people that are going to be very affected. And they’re Democrats, they’re going to be Democrats," he told reporters in the Oval Office.

The president added, "A lot of good can come down from shutdowns," suggesting the interruption would allow him to "get rid of a lot of things we didn’t want, and they’d be Democrat things."

Health standoff

The dispute stems from Republican attempts to extend current funding into late November while discussions on a broader package continue.

Democrats, holding only limited influence in Congress, rejected the plan, insisting that billions of dollars for healthcare programs such as Obamacare must be restored.

Nearly all Democratic senators opposed the House’s short-term measure just hours before the midnight deadline.

The shutdown marks the first since the record 35-day closure nearly seven years ago during Trump’s first term, when disagreement over border wall funding froze government functions.

This time, the conflict centers on healthcare, with Democrats warning that the Trump administration’s moves to dismantle coverage for low-income households risk long-term damage.

Federal freeze

While critical services like the military, Social Security, food assistance, and postal operations will continue, the Congressional Budget Office estimates up to 750,000 workers could be sidelined each day until funding resumes.

The Senate is scheduled to reconvene on Wednesday, though the House remains in recess. A break for the Jewish holiday Yom Kippur means the chamber will not meet again until Friday, extending uncertainty over how long the shutdown may drag on.