Government shutdown begins after Congress fails to pass appropriations amid tax credit fight

At midnight on October 1, 2025, the federal government shut down for the second time in the year as Congress failed to pass appropriations legislation. The impasse centered on administration demands to cut social spending while extending expiring tax credits for corporations and wealthy individuals. The shutdown immediately furloughed hundreds of thousands of federal workers and threatened the disruption of vital services, including SNAP benefits and food inspections. Trump blamed Democrats for the stalemate, claiming their demands for social program funding were 'destroying the country,' while Democrats pointed to his refusal to sign any bill that didn't include his tax priorities.

"Democrats' demands risk federal services for millions." — White House statement on the shutdown, October 1, 2025