About 750,000 US federal workers are furloughed, while the Trump administration hints some layoffs could become permanent.
BY PC Bureau
The United States government entered its first shutdown in six years early Wednesday, after lawmakers failed to reach agreement on a stopgap funding bill before the midnight deadline. At the center of the deadlock is a fierce standoff between President Donald Trump and congressional Democrats over health care funding, with both sides refusing to yield.
The shutdown immediately forced an estimated 750,000 federal employees into furloughs and disrupted countless public services, from business loans to scientific research. Air travel, economic data releases, and even the operations of national parks and museums are expected to be impacted.
“This is not just another Washington impasse,” said Senate Democratic Leader Chuck Schumer. “This is about health care for millions of Americans, and we will not allow the president to strip it away under the guise of a budget fight.”
A Different Kind of Shutdown
Unlike previous closures, which usually ended with workers returning once a deal was struck, the Trump administration is signaling a more aggressive approach. The Office of Management and Budget has already instructed agencies to prepare “reduction-in-force” notices — bureaucratic code for permanent layoffs in programs deemed inconsistent with White House priorities.
“Shutdowns used to be disruptive but temporary,” said Professor Elaine Kearns, a public policy expert at Georgetown University. “This administration is leveraging the shutdown as a tool to restructure government itself. That’s what makes this moment extraordinary — and alarming.”
Trump himself has leaned into the crisis, framing it as an opportunity to reshape Washington. “We’re not going to keep funding bloated programs that don’t work,” the president told reporters at the White House on Tuesday. “A lot of these jobs won’t be coming back — and frankly, the taxpayers will thank me for it.”
The administration has already pushed through sweeping cuts across agencies, bolstered by the creation of the new “Department of Government Efficiency”, a controversial body critics argue is designed to shrink the federal workforce under the guise of reform.
The U.S. government has shut down after the Senate failed to pass a short-term funding bill.
Democrats are pushing to block Medicaid cuts and extend Affordable Care Act tax credits, while Republicans insist on a “clean” funding bill without those additions.
Payments will be… pic.twitter.com/ls1WZVFRCz
— EM (@EXECUTIVEXMEDIA) October 1, 2025
Impact on Millions
The immediate consequences are wide-ranging:
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Federal Employees: Hundreds of thousands will face weeks without pay, with uncertainty about whether jobs will return. “We’ve lived through shutdowns before, but this one feels different,” said Maria Alvarez, an EPA scientist in Virginia now furloughed. “This time, I don’t know if I’ll even have a job waiting for me.”
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Public Services: The Small Business Administration has stopped issuing new loans, threatening entrepreneurs across the country. Pollution cleanup projects have been paused by the EPA. The Department of Education expects to furlough nearly 90% of its workforce.
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Everyday Americans: National parks and Smithsonian museums are closing their doors. Even the Labor Department’s monthly unemployment report — a key indicator watched by Wall Street — will be delayed.
“Ordinary Americans are the ones who will feel the brunt of this manufactured crisis,” said Rep. Pramila Jayapal (D-Wash.). “This is not just a D.C. story — this is about families missing paychecks and communities losing services.”
The Politics Behind the Crisis
At the heart of the deadlock is health care. Democrats are demanding the extension of subsidies under the Affordable Care Act, which are set to expire at the end of the year. Without them, premiums could rise for nearly 24 million Americans, particularly in Republican-leaning states like Texas and Florida.
“This shutdown is about health care, plain and simple,” said Sen. Elizabeth Warren (D-Mass.). “The president is holding the government hostage to take coverage away from working families.”
Republicans, however, argue Democrats are playing politics ahead of the 2026 midterms. “The far left’s refusal to compromise is why we are here tonight,” said Senate GOP leader John Thune (R-S.D.). “They would rather trigger a shutdown than allow the president to carry out his agenda.”
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A Familiar but Risky Gamble
This is not Trump’s first shutdown showdown. In 2018, his demand for border wall funding triggered a 35-day government closure — the longest in U.S. history. Polls later showed the public largely blamed Republicans, damaging the administration politically.
Yet this time, the White House appears emboldened. “The president sees this as a fight worth having,” said a senior administration official, speaking on condition of anonymity. “If that means fewer bureaucrats and leaner government, that’s a win in his book.”
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History suggests shutdowns are politically perilous for both sides. But by threatening to turn furloughs into permanent layoffs, Trump is testing not just Democrats — but also the patience of millions of Americans who rely on federal services.
As the shutdown enters its first days, uncertainty looms over Washington. The question now is not only how long it will last, but how fundamentally it may change the federal government itself.
