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Explainer | Why has the US government shut down and who will it impact most?

The shutdown began after congressional Democrats and Republicans could not agree on how to continue funding the federal government

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The US Capitol and Washington Monument in Washington DC. Photo: AP
Bochen Hanin Washington
At 12.01am on Wednesday, US Eastern time (12.01pm Hong Kong time), the US government shut down after Republicans and Democrats in Congress failed to reach a funding deal.

Here, the Post examines why this happened and what will be affected.

Why has the government shut down?

Government shutdowns occur when Republicans and Democrats in the US Congress cannot reach a deal to continue government funding by the time current funding lapses – in this case, at the end of the 2025 financial year on September 30, 2025.
A US flag illuminated in a doorway of the otherwise empty rotunda at the US Capitol. Photo: Reuters
A US flag illuminated in a doorway of the otherwise empty rotunda at the US Capitol. Photo: Reuters

Republicans control both chambers of Congress, but in the Senate, they are short of the 60 votes they need to pass the funding bill, meaning they need some Democratic support.

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Democrats have made the stand-off primarily about healthcare, refusing to back a bill introduced by Republicans that they say will make healthcare less affordable.

They are calling for an extension of tax credits that would make health insurance cheaper for millions of Americans and for a reversal of cuts to Medicaid, a joint federal and state programme that helps cover medical costs for people with limited income and resources.

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A short-term bill laying out funding until November 21 was earlier passed in the House of Representatives, but did not clear the Senate. Senate Democrats have proposed alternatives, including one that would keep the government funded until October 31, but Republicans have rejected them all.
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