US gov't shutdown begins, forcing hundreds of thousands on unpaid leave

The United States federal government has officially entered a shutdown, leaving hundreds of thousands of workers facing unpaid leave and halting a wide range of programs and services.

The funding lapse began after the Republican-led Senate failed to pass a spending bill late Saturday, triggering the country’s first shutdown since 2018. Under the terms, “non-essential” federal workers are to be furloughed, while others must continue working without pay until a funding agreement is reached.

A letter from Congressional Budget Office Director Phillip Swagel outlined the potential economic impact, estimating that as many as 750,000 federal employees could be furloughed each day, at a daily cost of roughly $400 million (£297 million).

The number of affected workers may fluctuate as agencies adjust staffing over time.

Members of Congress will continue to receive their salaries, as mandated by the Constitution, while military personnel are required to remain on duty but will not be paid until after the shutdown ends.

“The effects of a government shutdown on business activity are uncertain, and their magnitude would depend on the duration of a shutdown and on decisions made by the Administration,” the CBO letter cautioned.

Government shutdowns have become a recurring feature of modern US politics. Under Donald Trump’s presidency, three shutdowns took place, including the longest in US history—35 days. Before that, Bill Clinton’s administration saw a 21-day shutdown in 1995, while Barack Obama endured a 16-day closure in 2013 amid disputes over the Affordable Care Act.

Ronald Reagan presided over eight separate shutdowns during the 1980s, though none lasted more than three days.

The duration of the current shutdown—and its ripple effects on the US economy—remains uncertain.