Fast Key Takeaways
- A government shutdown begins when Congress doesn’t pass spending legislation or a continuing resolution; agencies cannot legally spend money without it.
- If Congress fails to act by October 1, 2025, federal funding lapses and many programs pause.
- Health and defense agencies face large furloughs — HHS has warned roughly 41% of its staff could be furloughed in a lapse.
- Leadership talks at the White House produced little progress and officials warned a shutdown is likely.
- Agencies and HR offices have published step-by-step shutdown guidance so workers know what to expect.
What is a government shutdown?
A government shutdown occurs when Congress does not pass the appropriations bills (or a stopgap continuing resolution) needed to fund federal agencies; without those appropriations, most discretionary federal spending must stop and many programs pause.
Why the October 1 deadline matters
The federal fiscal year begins on October 1, so if appropriations are not enacted by 12:01 a.m. that day, funding lapses and contingency plans kick in — that is the legal trigger for a shutdown.
Who keeps working (and who doesn’t)
“Excepted” employees performing emergency or national-security tasks (military operations, air-traffic control, certain law-enforcement functions) generally continue; many civilian roles are classified as non-essential and are placed on furlough until funding resumes.
How large agencies are preparing right now
Departments publish contingency staffing plans detailing who is kept on and who is furloughed; for example, HHS’s plan estimates about 41% furloughs among its workforce, with significant cuts to CDC and NIH non-emergency work.
Defense and national security ripple effects
While frontline military operations continue, many DoD civilian employees are expected to be furloughed and contract work can be paused, slowing maintenance, procurement, and civilian support functions.
How local governments and communities feel it
State and local governments don’t shut down, but federal grant payments, disaster aid, permit approvals and other federal interactions can be delayed — creating cash-flow and operational headaches for local services and contractors.
What happened at the White House meeting (short version)
A high-stakes meeting between the White House and congressional leaders failed to bridge differences over healthcare subsidies and funding terms; senior officials signaled a shutdown remains possible in the hours ahead.
What employees and contractors should expect immediately
Human resources offices and OPM guidance explain furlough procedures, pay status, and how “excepted” work is designated — employees often learn their status by agency notice the day funding lapses. Agencies have already published guidance so workers can prepare.
What the public will notice first
Expect slower passport and visa processing, delays in grant approvals, closures of some federal sites (parks, museums), and postponement of routine inspections and non-emergency regulatory work that affect businesses and travelers.
Government Shutdown
The financial and human cost (why this matters)
Even brief shutdowns create real pain: unpaid or delayed paychecks, paused research, and disrupted services; the long 2018–2019 shutdown (35 days) showed how prolonged lapses can cost billions and harm families and local economies.
Practical steps you can take now
If you or your organization depend on federal services: 1) check agency websites and official social accounts for contingency notices, 2) confirm contracts and payment terms, 3) federal employees should read agency HR shutdown guidance and plan for short-term cash needs.
Bottom line (quick recap)
A government shutdown would pause a large swath of federal activity, furlough tens of thousands of workers, and delay services people rely on — and unless Congress authorizes funding before midnight on September 30, the lapse begins at 12:01 a.m. on October 1, 2025.
Sources & further reading
Reuters (HHS furlough details), HHS contingency plan, Reuters (White House meeting), OPM guidance on furloughs, House FAQ on FY2026 deadline, DoD contingency reporting, CBS live coverage, historical review of 2018–2019 shutdown.