NewTradingView.com – Investing and Stock News
Investing and Stock News
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Editor's Pick

Shutdown explained: Who works, who doesn’t and how much it costs

by September 29, 2025
written by September 29, 2025

The clock is ticking to fund government, and so far, lawmakers do not have a path forward to avert a partial shutdown.

The Senate returned to Washington, D.C., on Monday, and congressional leaders are slated to meet with President Donald Trump to negotiate a deal on funding the government. But the last week has seen both sides point the finger at who would own closing the government.

Lawmakers have until midnight Wednesday to pass a short-term funding extension, or else the government will close. And if it does, it would be the third shutdown under Trump.

A government shutdown happens when Congress can neither pass all 12 appropriations bills needed to fund the government, nor pass a continuing resolution (CR), which typically keeps funding levels static while lawmakers hustle to finish their work on spending bills.

Since 1980, there have been 10 government shutdowns. Only three have happened since the turn of the century.

All shutdowns are different, and the impending shutdown is no exception. However, it could have more devastating effects on the federal workforce than previous shutdowns given the administration’s orders to undertake mass firings.

Programs like Medicare, Social Security and Medicaid will continue, along with the Postal Service, Veterans’ Affairs hospitals and clinics, and Immigration and Border Patrol security activities, among others. Federal employees will likely go without pay, however, and a string of agencies will see their services hampered by furloughs, like the IRS and Small Business Administration. Housing programs may also see a delay in rental assistance and loans.  

Typically, shutdowns see thousands of federal workers deemed ‘nonessential’ furloughed, but the Office of Management and Budget (OMB) released a memo last week that directed agencies to ‘use this opportunity to consider reduction in force (RIF) notices for all employees’ in programs that have no other available funding source and that don’t comport with Trump’s priorities if lawmakers couldn’t fund the government.

‘RIF notices will be in addition to any furlough notices provided due to the lapse in appropriation,’ the memo read, and they will be issued ‘regardless of whether the employee is excepted or furloughed during the lapse in appropriations.’

Then there is the cost of a shutdown. While the cost of a partial closure this year is unknown, the Congressional Budget Office did an analysis of the cost of the last time the government shuttered in 2019.

The report, published in January 2019, found that the shutdown saw roughly $18 billion in federal spending delayed, which led to a dip in that year’s first quarter gross domestic product of $8 billion. The report noted roughly $3 billion of that would not be recovered.

It also found that federal workers who received delayed payments and private businesses were the hardest hit.

‘Some of those private-sector entities will never recoup that lost income,’ the report stated.

Congressional Republicans and Democrats are at a stalemate on the current CR, not so much because of what’s in the bill — it would keep the government open until Nov. 21 and includes tens of millions in new spending for lawmakers’ security — but because of what it lacks.

Democratic lawmakers demanded that the short-term extension at least include an extension to expiring Obamacare premium subsidies and have warned that if Congress doesn’t act, millions of Americans will see their health care costs increase.

While the subsidies don’t expire until the end of the year, congressional Democrats have noted that insurers are gearing up to send out new rates on Oct. 1.

But Senate Republicans, including Senate Majority Leader John Thune, R-S.D., have said that conversations about the subsidies can happen after the government is funded, but that has so far not been enough for Senate Minority Leader Chuck Schumer, D-N.Y., and Senate 
Democrats.

‘Fundamentally, nothing has changed, though, and the choice remains the same: Democrats can either vote for a clean, short-term, nonpartisan CR that prioritizes the American people, or they can choose a completely avoidable shutdown that prioritizes politics above all else,’ Thune told NBC’s ‘Meet the Press.’

Both Thune and Schumer, along with House Speaker Mike Johnson, R-La., and House Minority Leader Hakeem Jeffries, D-N.Y., will meet with Trump Monday afternoon. The confab comes after Trump canceled a meeting with the Democratic leaders earlier this week.

Schumer and Jeffries said in a joint statement after a new meeting was set that ‘Democrats will meet anywhere, at any time and with anyone to negotiate a bipartisan spending agreement that meets the needs of the American people.’

‘We are resolute in our determination to avoid a government shutdown and address the Republican health care crisis,’ they said. ‘Time is running out.’ 

This post appeared first on FOX NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
Trump says U.S. will impose new tariffs on heavy trucks, drugs and kitchen cabinets
next post
A tale of two indictments: Top Dems say ‘no one is above the law’ on Trump, but decry Comey case

You may also like

Kennedy claims Democrats want millions for foreign LGBT...

October 6, 2025

Schumer’s shutdown holds as Senate Dems block GOP...

October 6, 2025

Pope’s top diplomat blasts Israel’s Gaza offensive as...

October 6, 2025

Mike Johnson fires back at Hakeem Jeffries’ ‘desperate’...

October 6, 2025

Trump flips his shutdown approach, leaving Congress to...

October 6, 2025

Schumer’s shutdown scheme explained: Dems double down on...

October 6, 2025

Self-described ‘unapologetic supporter of Israel’ John Fetterman weighs...

October 6, 2025

More lawmakers say they’re rejecting paychecks as government...

October 6, 2025

Trump warns of ‘massive bloodshed’ if Hamas fails...

October 6, 2025

Trump announces Israel agrees to Gaza ‘initial withdrawal...

October 4, 2025
Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!




    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Popular Posts

    • 1

      Oil and natural gas: Oil is back on the positive side

    • 2

      The dollar index continues to pull back to a new low

    • 3

      Gold and Silver: Gold remains stable in the $2420 zone

    • 4

      IonQ Stock Review: Should You Consider Investing Now?

    • 5

      Gold Price Surge Hits $3,385 Amid Trade Tensions

    Recent Posts

    • Schumer’s shutdown holds as Senate Dems block GOP bid to reopen government

      October 6, 2025
    • Kennedy claims Democrats want millions for foreign LGBT projects, electric buses to end shutdown

      October 6, 2025
    • Pope’s top diplomat blasts Israel’s Gaza offensive as ‘ongoing massacre,’ condemns Hamas attacks

      October 6, 2025
    • Trump flips his shutdown approach, leaving Congress to take the heat

      October 6, 2025
    • Mike Johnson fires back at Hakeem Jeffries’ ‘desperate’ call for televised shutdown debate

      October 6, 2025

    Categories

    • Economy (20)
    • Editor's Pick (409)
    • Investing (20)
    • Stock (23)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: NewTradingView.com, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2025 NewTradingView.com All Rights Reserved.


    Back To Top
    NewTradingView.com – Investing and Stock News
    • Investing
    • Stock
    • Economy
    • Editor’s Pick