Federal Government Shuts Down as Funding Deadline Passes

The federal government officially shut down after Congress did not reach a funding agreement before the September 30 deadline, resulting in a lapse in appropriations for many federal agencies and programs. While essential services will continue, the shutdown is expected to disrupt a wide range of operations and create uncertainty for the broader economy.

The House passed a short-term funding measure that would maintain current spending levels, but the package stalled in the Senate after senators rejected the proposal, which would have extended government funding through November 21. The primary disagreement centers on whether to include action on expiring health insurance subsidies in the short-term funding measure. Democratic leaders have pushed to address those provisions as part of the package, while Republican leaders have maintained that health care and other policy debates should be handled separately.

In the days leading up to the deadline, the U.S. Chamber of Commerce sent a letter to the U.S. Senate urging lawmakers to approve the Continuing Appropriations and Extensions Act to keep the government funded at current levels. In the letter, the Chamber emphasized that shutdowns are harmful to the economy, the American people, and national security, and called on Congress to provide certainty and stability to avoid unnecessary disruptions. Read the letter here.

The last major federal government shutdown occurred during the winter of 2018–2019 and lasted 34 days. Stay tuned to The Bottom Line for updates.