U.S.

Partial federal shutdown begins after House fails to approve funding

Federal funding lapsed at 12:01 a.m. ET after the House did not vote on a Senate-amended package, pausing services and prompting agency shutdown plans.

Lisa Park3 min read
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Partial federal shutdown begins after House fails to approve funding
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The federal government entered a partial shutdown at 12:01 a.m. Eastern Time after the House, which was in recess, failed to vote on an amended bipartisan spending package the Senate had approved. The lapse forced agency leaders to begin ordered shutdown procedures and left millions of Americans uncertain about services timed to funding decisions.

The Senate had approved five appropriations bills to fund a broad set of agencies through September, including Defense; Labor, Health and Human Services, and Education combined; Transportation and Housing and Urban Development; State; and financial services and general government. Lawmakers also approved a two-week continuing resolution for the Department of Homeland Security to give negotiators more time to resolve a dispute over immigration enforcement that became pivotal to the talks.

President Donald Trump endorsed the Senate-negotiated package and urged House Republicans to back the deal. Reuters reported that "the deal, announced by Senate Democrats and President Donald Trump, would allow Congress to pass a spending bill that covers a wide swath of government operations, from the military to health programs, while they negotiate new limits on Trump's immigration crackdown." Negotiations broke down over demands by Democrats for policy changes after recent fatal encounters between federal immigration agents and U.S. citizens; Reuters named Alex Pretti, a nurse who was shot dead by federal agents, as one of the incidents that intensified the standoff.

The White House directed a number of agencies to execute shutdown plans. A White House memo, reproduced by the BBC, told employees: "Employees should report to work for their next regularly scheduled tour of duty to undertake orderly shutdown activities," and added, "It is our hope that this lapse will be short." The memo singled out the Departments of Transportation, Education and Defense among those preparing for shutdown operations.

Policy analysts and budget experts warned of immediate operational disruptions. The Committee for a Responsible Federal Budget explained that when only some of the 12 annual appropriations bills are enacted, agencies without appropriations must suspend non-essential discretionary functions, furloughing non-essential staff while essential employees continue to work without pay. CRFB noted that furloughed federal employees are guaranteed back pay by legislation passed in January 2019, but that federal contractors historically have not received back pay. Brookings and the Congressional Budget Office have estimated that past shutdowns can shave tenths of a percentage point off GDP growth and leave some losses unrecovered.

AI-generated illustration
AI-generated illustration

The partial lapse is the second such shutdown in the past year, coming 11 weeks after a 43-day impasse last fall that affected federal operations. Reuters reported that the previous shutdown cost the U.S. economy an estimated $11 billion.

Senate and White House officials expressed hope the disruption would be brief. Senate leaders said the House, scheduled to return from recess on Monday, must approve the amended package for appropriations to resume fully. Senate Democrats and others framed the fight as a test of immigration enforcement policy and accountability. Senate Minority Leader Chuck Schumer said, "We need to rein in ICE and end the violence."

For communities dependent on federal health, housing and education funding, even a short lapse can delay grants, inspections and program rollouts, compounding stress for low-income and medically vulnerable populations. Lawmakers face a narrow window to resolve political differences before short-term funding gaps deepen operational strain.

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