After midnight on October 1, 2025, the federal government officially shut down because lawmakers failed to come together on a new spending plan for the fiscal year. The halt leaves hundreds of thousands of federal workers in limbo and raises new questions about how long agencies can continue daily services.

With Republicans pointing fingers at Democrats over demands for health care subsidies, and Democrats pushing back that those must be part of any deal, the standoff has already begun to interfere with everything from economic reporting to food aid programs. As agencies start to scale back, here’s what we know about the shutdown, how it affects you and what businesses have ceased service until further notice.

What Happens When the Government Shuts Down?

When the U.S. government shuts down, “non-essential” federal workers could face furloughs, meaning an indefinite period of no pay while their jobs pause.

The service disruption can impact those outside of Washington D.C. as well. National parks and museums face widespread closures, while small businesses that rely on federal loans and approvals could experience delays.

What Businesses Are Closed During a Government Shutdown?

The October 2025 government shutdown will affect non-essential businesses, but essential ones such as the USPS, TSA, the Social Security Administration and the military will continue working. The following list includes the businesses and agencies the shut down could impact:

• Department of Commerce

• Department of Education

• Environmental Protection Agency (EPA)

• Department of Labor

• National Park Service

• Small Business Administration (SBA)

• NASA

• Food and Drug Administration (FDA)

• Centers for Disease Control and Prevention (CDC) / NIH

• General Services Administration (GSA)

• Department of Agriculture (USDA)

Why Did the Government Shut Down?

The government shut down on October 1, 2025, because Congress did not agree on a funding bill before the start of the fiscal year. Donald Trump openly blamed Democrats for disagreeing with Republicans on the spending bill. Democrats stood firm about healthcare, and Republicans accused them of causing the shutdown to satisfy their voters for the 2026 midterm elections.

After the vote, Senate Democratic Leader Chuck Schumer said, “Our guarantee is to the American people that we’re going to fight as hard as we can for their healthcare, plain and simple,” per Reuters.

Trump shared a deepfake AI-generated video to social media of Schumer and House Minority Leader Hakeem Jeffries with mariachi music playing in the background and Jeffries wearing a sombrero.