U.S. government shutdown enters second week over funding dispute
The U.S. federal government shutdown, now in its second week since starting on October 1, 2025, stems from a partisan standoff in the Senate over extending Affordable Care Act premium tax credits. Democrats demand a firm commitment to the subsidies before approving funding, while Republicans push for a clean continuing resolution to reopen the government first. Impacts include flight delays, uncertainty over federal worker pay, and the delay of key economic data.
The shutdown began at 12:01 a.m. ET on October 1, 2025, after Congress failed to pass a funding bill amid disagreements on billions in enhanced ACA premium tax credits introduced during the COVID-19 pandemic and set to expire at year's end. These credits have lowered premiums for about 24 million enrollees, with Democrats arguing their lapse would double average costs and leave four million uninsured by 2034, per Congressional Budget Office estimates. Republicans, including Senate Majority Leader John Thune, R-S.D., insist on reopening the government via a clean bill before negotiating subsidies, which they say could add $349.8 billion to the deficit over a decade.
Senate votes on the Republican plan have repeatedly failed, with Thune needing at least eight Democrats to join due to opposition from Sen. Rand Paul, R-Ky. Three Democrats—Sens. John Fetterman, D-Pa., Catherine Cortez Masto, D-Nev., and Angus King, I-Maine—have supported prior attempts, but King indicated he may flip without specificity on subsidies. Senate Minority Leader Chuck Schumer, D-N.Y., blamed House Republicans for not convening, stating, "Hundreds of thousands of federal workers are furloughed and thousands more are working without pay. And meanwhile, House Republicans are getting paid and not working."
A White House memo, reported by Axios, suggests up to 750,000 furloughed workers may not receive back pay, contradicting a 2019 law signed by President Donald Trump guaranteeing compensation. Trump remarked, "It depends on who we're talking about... There are some people that really don't deserve to be taken care of." Sen. Patty Murray, D-Wash., called this "lawless," while House Speaker Mike Johnson, R-La., said it underscores urgency for Democrats to act.
Broader effects include air traffic control shortages causing delays at airports like Newark (average 53 minutes) and Hollywood Burbank (up to 2.5 hours, with no controllers for five hours on October 6). Transportation Secretary Sean Duffy attributed this to increased sick calls amid unpaid work fears. The Bureau of Labor Statistics also halted its September jobs report, estimated at 50,000 jobs added, complicating Federal Reserve decisions.
Polls show divided public opinion: A KFF survey found 78% favor extending subsidies, including 59% of Republicans, while an OnMessage poll indicated 61% want COVID-era programs to end. Trump warned of "substantial" permanent job losses if prolonged, adding, "The Democrats have no leader."