The U.S. government is in a shutdown because Congress failed to pass the necessary funding legislation for the 2026 fiscal year before the deadline of October 1, 2025. The shutdown specifically stems from a dispute between Republicans and Democrats over federal spending levels, including disagreements about extending health insurance subsidies under the Affordable Care Act, reversing Medicaid cuts, and the overall reach of government spending cuts. Republicans in the House passed a short-term funding bill, but it did not have enough support in the Senate, where 60 votes are required to overcome a filibuster. Democrats oppose the Republican bill because it does not include their healthcare-related demands. This impasse has led to the suspension of many government operations and furloughs of hundreds of thousands of federal employees.

More specifically:

• Democrats are pushing for the extension of expiring ACA premium subsidies and restoration of Medicaid funding cuts Republicans supported earlier.
• Republicans want to reduce federal spending and are using the shutdown as leverage to force concessions.
• The Senate remains deadlocked, with neither side able to secure enough votes to pass a funding bill.
• Essential services continue, but many government functions are paused, and employees are furloughed or working without pay.

This is the third government shutdown during President Donald Trump's current presidency and reflects ongoing partisan conflicts and challenges in budget negotiations.