US Government Shutdown Live Updates: Government funding bill fails for second time in Senate, Trump says US will probably have a shutdown
Economic Times |
Synopsis
US Government Shutdown Live Updates: US government operations began grinding to a halt at 12:01 am (0401 GMT) Wednesday after Republicans and Democrats failed to break an impasse in Congress. The closure will see non-essential operations halted, leaving hundreds of thousands of civil servants temporarily unpaid, and many social safety net benefit payments potentially disrupted.
US Government Shutdown Live Updates: The United States was plunged into a government shutdown on Wednesday after President Donald Trump and congressional Democrats failed to break a bitter deadlock, each side waiting for the other to give ground in what could spiral into a prolonged standoff.
With funding expiring at midnight, most federal agencies were forced to halt operations. Around 750,000 public sector employees now face furloughs — unpaid leave until government functions resume. Essential workers, including members of the military, are required to remain on duty, but many are expected to miss paychecks starting next week.
Government shutdowns are not new in Washington’s polarized politics, but this is the first since the record-breaking 35-day lapse in 2019 during Trump’s first term. The fallout is deeply unpopular, disrupting everything from national parks to basic administrative services relied upon by millions of Americans.
This time, the stakes are even higher. Trump has been pushing an aggressive agenda to shrink government, floating the idea of eliminating entire departments. The White House has also suggested that many furloughed workers could face permanent job cuts.
“Shutdowns can actually be useful,” Trump told reporters on Tuesday. “We can get rid of things we didn’t want — mostly Democrat things.”
Democrats, outraged over Trump’s cuts to healthcare programs and his dismantling of federal agencies, are refusing to provide the votes needed in the Senate to pass a funding bill. They argue that Republicans must compromise on proposed spending reductions, particularly those targeting health care subsidies.
House Republicans had already advanced a temporary funding measure to keep the government open through late November. But in the Senate, the 60 votes needed to send the bill to Trump’s desk fell short, with Democrats blocking its progress.
Both parties brought rival stop-gap funding proposals to the floor on Tuesday, but neither resolution secured enough support to advance, leaving Washington in gridlock as the shutdown took effect.
With funding expiring at midnight, most federal agencies were forced to halt operations. Around 750,000 public sector employees now face furloughs — unpaid leave until government functions resume. Essential workers, including members of the military, are required to remain on duty, but many are expected to miss paychecks starting next week.
Government shutdowns are not new in Washington’s polarized politics, but this is the first since the record-breaking 35-day lapse in 2019 during Trump’s first term. The fallout is deeply unpopular, disrupting everything from national parks to basic administrative services relied upon by millions of Americans.
This time, the stakes are even higher. Trump has been pushing an aggressive agenda to shrink government, floating the idea of eliminating entire departments. The White House has also suggested that many furloughed workers could face permanent job cuts.
“Shutdowns can actually be useful,” Trump told reporters on Tuesday. “We can get rid of things we didn’t want — mostly Democrat things.”
Democrats, outraged over Trump’s cuts to healthcare programs and his dismantling of federal agencies, are refusing to provide the votes needed in the Senate to pass a funding bill. They argue that Republicans must compromise on proposed spending reductions, particularly those targeting health care subsidies.
House Republicans had already advanced a temporary funding measure to keep the government open through late November. But in the Senate, the 60 votes needed to send the bill to Trump’s desk fell short, with Democrats blocking its progress.
Both parties brought rival stop-gap funding proposals to the floor on Tuesday, but neither resolution secured enough support to advance, leaving Washington in gridlock as the shutdown took effect.
11:37:16 PM IST, 01 Oct 2025
US Government Shutdown Live: Dollar hobbled by US shutdown
US Government Shutdown Live Updates: The pound rose against the dollar on Wednesday, as the U.S. currency came under broad pressure after the government in Washington DC shut down over funding to add to investor caution around U.S. assets. Sterling wrapped up September with a 0.4% loss against the dollar, but is still up 7.7% this year, putting it on course for its strongest showing against the U.S. currency since 2017's 9.5% rally. Against the euro, it has struggled, as the single European currency gained 0.8% last month, bringing the increase for 2025 to 5.6%.
11:15:00 PM IST, 01 Oct 2025
US Government Shutdown Live: Wall Street stocks shrug off start of US shutdown
US Government Shutdown Live: Wall Street stocks shrugged off early losses on Wednesday as the US government started to shut down after Democrats and President Donald Trump failed to break a deadlock over spending.
The prospect of services in the United States being closed pushed safe-haven gold to another record high over $3,895.
While Wall Street's indices slid at the opening bell, they recovered during the morning session, with the Dow showing a small gain.
"There have been previous shutdowns, and typically these have had little effect on financial markets. But much depends on how long the shutdown lasts," said David Morrison, analyst at Trade Nation.
"Given the current intransigence on both sides, there's a possibility that federal services could be curtailed for some time," he said.
The prospect of services in the United States being closed pushed safe-haven gold to another record high over $3,895.
While Wall Street's indices slid at the opening bell, they recovered during the morning session, with the Dow showing a small gain.
"There have been previous shutdowns, and typically these have had little effect on financial markets. But much depends on how long the shutdown lasts," said David Morrison, analyst at Trade Nation.
"Given the current intransigence on both sides, there's a possibility that federal services could be curtailed for some time," he said.
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10:45:00 PM IST, 01 Oct 2025
US Government Shutdown Live: Most and least affected federal agencies
US Government Shutdown Live Updates: The shutdown’s reach is uneven, hitting some departments far harder than others. Check the list
10:25:00 PM IST, 01 Oct 2025
US Government Shutdown Live: Amid shutdown, US manufacturing slides for 7th straight month
US Government Shutdown Live: The US manufacturing sector contracted for a seventh consecutive month in September, though at a slightly slower pace, with the ISM index rising to 49.1 from 48.7 in August. Production improved, but declines in new orders and inventories offset gains. Survey respondents cited low business sentiment, blaming tariffs for higher costs and ongoing pressure on manufacturers. Read More
10:18:15 PM IST, 01 Oct 2025
US Government Shutdown Live: Senate rejects plan to end US government shutdown
US Government Shutdown Live Updates: Attempts to swiftly end the U.S. government shutdown collapsed on Wednesday after the Senate voted down a plan aimed at breaking the bitter funding standoff between President Donald Trump and Democrats in Congress. Senate Democrats, pressing for the extension of healthcare subsidies for low-income families, refused to provide the votes needed to advance a Republican-backed bill passed by the House. The measure would have temporarily reopened the government for several weeks while broader negotiations continued.
10:15:00 PM IST, 01 Oct 2025
US Government Shutdown Live: Justice Department's message on shutdown
US Government Shutdown Live Updates: “Democrats have shut down the government,” reads a pop up message at the top of the Justice Department’s website.
10:05:00 PM IST, 01 Oct 2025
US Government Shutdown Live: US Agriculture Department website won't be updated due to shutdown
US Government Shutdown Live Updates: “Due to the Radical Left Democrat shutdown, this government website will not be updated during the funding lapse. President Trump has made it clear he wants to keep the government open and support those who feed, fuel, and clothe the American people,” reads a message on the Agriculture Department’s official website.
09:55:18 PM IST, 01 Oct 2025
US Government Shutdown Live: Government funding bill fails
US Government Shutdown Live Updates: As per AP, the GOP bill to fund the government mostly at current levels has failed for a second day in the Senate. The bill fell along a similar vote pattern as Tuesday night as most Democrats continued to hold out and demand that Congress take up health care benefits.
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09:55:00 PM IST, 01 Oct 2025
US Government Shutdown Live: Democratic funding proposal fails in the Senate
US Government Shutdown Live Updates: The Associated Press has reported that the proposal from Democrats to reopen the government and extend health care benefits failed on a 47-53 party line vote. Now senators will be voting whether to advance Republicans’ proposal to keep funding mostly at current levels for seven weeks. The bill also failed Tuesday night, but Republican leaders are hoping they can get a few more Democrats to vote for the proposal.
We will probably have a shutdown
- Trum on shutdown
09:33:32 PM IST, 01 Oct 2025
US Government Shutdown Live: Three Democrates voted for Republicans’ bill
US Government Shutdown Live Updates: According to AP, three members of the Democratic Caucus who voted for it — Sens. Catherine Cortez Masto, John Fetterman and Angus King — have voted for it again. But no other Democrat has.
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09:15:00 PM IST, 01 Oct 2025
US Government Shutdown Live: Democrats’ demands for health-care tax credits fuel government shutdown
US Government Shutdown Live Updates: The U.S. is confronting a fresh cycle of uncertainty after President Donald Trump and Congress failed to strike an agreement to keep government programs and services running by Wednesday’s deadline. Disagreement stemmed from a deadlock in Congress over Democratic demands over health care — and Republican efforts to kick that can down the road.
At issue are tax credits that have made health insurance through the Affordable Care Act more affordable for millions of people since the COVID-19 pandemic. The credits are set to expire at the end of the year if Congress doesn’t extend them — which would more than double what subsidized enrollees currently pay for health insurance premiums, according to a KFF analysis.
At issue are tax credits that have made health insurance through the Affordable Care Act more affordable for millions of people since the COVID-19 pandemic. The credits are set to expire at the end of the year if Congress doesn’t extend them — which would more than double what subsidized enrollees currently pay for health insurance premiums, according to a KFF analysis.
08:58:12 PM IST, 01 Oct 2025
US Government Shutdown Live: What Democrats want?
US Government Shutdown Live Updates: Democrats are insisting the measure include provisions that would keep health insurance premiums from soaring for millions of Americans who purchase coverage through the marketplaces established by the Affordable Care Act. Enhanced tax credits that help make the coverage more affordable expire at the end of the year unless Congress acts.
08:57:03 PM IST, 01 Oct 2025
US Government Shutdown Live: Empty Capitol halls mark the first day of the government shutdown
US Government Shutdown Live Updates: "While tourists bustled outside the U.S. Capitol and a group of young children gathered on the steps Wednesday morning, the halls inside were quiet and mostly empty, a stark sign of the first day of the federal government shutdown. Public tours of the U.S. Capitol — and the Capitol Visitor Center — will remain suspended until government funding resumes," AP reported.
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08:56:08 PM IST, 01 Oct 2025
US Government Shutdown Live: Senate vote opens
US Government Shutdown Live Updates: US Senate is voting on Democrat’s government funding proposal. The bill has failed mostly along party lines each of the times it has previously come up for a vote.
08:55:07 PM IST, 01 Oct 2025
US Government Shutdown Live: Wall Street stocks slide as US shutdown begins
US Government Shutdown Live Updates: Wall Street stocks slid on Wednesday as the US government started to shut down after Democrats and President Donald Trump failed to break a deadlock over spending.
The prospect of services in the United States being closed pushed gold to another record high over $3,895.
The blue-chip Dow gave up 0.2 percent in opening deals, the broader S&P 500 shed 0.4 percent and the tech-heavy Nasdaq Composite declined 0.6 percent.
The prospect of services in the United States being closed pushed gold to another record high over $3,895.
The blue-chip Dow gave up 0.2 percent in opening deals, the broader S&P 500 shed 0.4 percent and the tech-heavy Nasdaq Composite declined 0.6 percent.
08:54:31 PM IST, 01 Oct 2025
US Government Shutdown Live: US enters shutdown
The United States entered a government shutdown Wednesday. With the government out of money after Trump and Congress failed to agree on a funding deal, federal agencies -- except for essential services -- stopped work from midnight.
Around 750,000 public sector workers are expected to be placed on furlough -- a kind of enforced leave, with pay withheld until they return to work.
Essential workers such as the military may be forced to work without pay and some will likely begin noticing missing checks by next week.
Around 750,000 public sector workers are expected to be placed on furlough -- a kind of enforced leave, with pay withheld until they return to work.
Essential workers such as the military may be forced to work without pay and some will likely begin noticing missing checks by next week.
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