As most Americans following current events know, the U.S. federal government shut down at 12:01 a.m. on Oct. 1, 2025 due to inability to arrive at an agreement on the federal budget for fiscal year 2026. The prior budget expired as of that time. As of this writing the shutdown continues. Republican and Democrat funding bills failed to reach the necessary number of votes to pass in the Senate.
Disagreement arose over federal spending levels, foreign aid rescissions, and, probably most importantly, over loss of health insurance subsidies, the premium support which has been provided under Obamacare and also the extension of tax cuts especially relating to the federal estate tax that were scheduled to expire.
Of extreme significance were the provisions of the One Big Beautiful Bill recently passed in Congress which, according to Congressional Budget Office estimates, would cause 10.9 million people to lose health insurance coverage and increase the budget deficit by $2.8 trillion by 2034. The federal estate tax exclusions which had been set to expire on Jan. 1, 2026 under the provisions of the prior Tax Cuts and Jobs Act passed during the first Trump administration were reinstated and the U.S. defense budget substantially increased.
The history of shutdowns
Sometimes prior experience can give some insight into what is happening now. The U.S. has experienced federal government shutdowns before — none of them pretty. The last one and the longest was during the first Trump administration. At that time the federal government shut down for 35 days during December-January, 2018-2019. The dispute was over funding for a proposed border wall between the United States and Mexico.
President Trump refused to sign a federal spending deal that did not include money for the border project. The way this eventually ended was when a short-term federal funding measure was passed to reopen the government on Jan. 25, 2019. Afterward, funds were transferred from other appropriations for $1.375 billion for 55 miles of border fencing between the U.S. and Mexico. In the meanwhile, the impact on airline traffic was devastating and was one of the factors ending that shutdown as air traffic controllers who were not being paid called in and the safety of airline travel was in serious jeopardy.
There was also a shutdown during the Obama presidency. This related primarily to two issues — the funding of health insurance under what has come to be known as Obamacare and the federal government debt ceiling. There was also a longer shutdown during the Clinton years. The longest shutdown was during the first Trump administration, the second longest under Clinton and the third longest under Obama.
How the current shutdown has affected Americans
The government shutdown does have devastating effects. Some federal operations have been halted and an estimated 750,000 employees have been placed on unpaid leave. There have been threats regarding job loss. Air traffic controllers, among others, are expected to work without pay during this period which does raise the issue of how long this can safely continue. There is also uncertainty for many government programs and employees.
The SNAP program, referred to as Food Stamps, was programmed to discontinue benefits as of Nov. 1. This would hit recipients at different times since payments are on a rolling basis during the month. Despite a specific set aside of a $6 billion contingency fund to handle potential interruptions in food subsidies the government has refused to tap into it and other food banks and nonprofit entities are hoped to come forward to assist. Work reporting requirements passed under the bill would require 80 hours of work or substitute activity per month for adults through age 64 and parents of children ages 14 and older.
Social Security payments should continue since it is a mandatory program not subject to annual appropriations. However, consumers may not be able to reach the agency or employees during this time due to the shutdown.
Perspectives on reopening
The House of Representatives under House Speaker Mike Johnson has been in recess during the shutdown after approving a short-term funding bill, which then moved to the Senate. Both legislative bodies have a majority of Republican members. However, the Senate needs 60 votes to pass legislation – more than a simple majority. The legislation has not yet been approved by the Senate. The president does not appear to be involved currently in the discussions. It is too soon to say what would break a stalemate.
Janet Colliton, Esq. is a Certified Elder Law Attorney approved as a specialty under the American Bar Association and the Pa. Supreme Court and limits her practice to elder law, retirement, life care, special needs, and estate planning and estate administration with offices at 790 East Market St., Suite 250, West Chester, 610-436-6674, colliton@collitonlaw.com. She is a member of the National Academy and Pennsylvania Association of Elder Law Attorneys and, with Jeffrey Jones, CSA, co-founder of Life Transition Services LLC, a service for families with long term care needs.
Source: Berkshire mont