The U.S. government shutdown 2025 officially began at 12:01 a.m. Wednesday, after congressional leaders failed to reach an agreement on competing spending bills. President Donald Trump and Republicans blamed Democrats for insisting on health care funding provisions, while Democrats accused Republicans of refusing to negotiate.
Federal Workers Face Layoffs During U.S. Government Shutdown 2025
The Trump administration has warned of possible mass layoffs. On a Wednesday conference call, Office of Management and Budget Director Russell Vought told Republican lawmakers that federal worker firings could begin within days. The cuts would be carried out as part of a reduction-in-force (RIF) targeting furloughed employees.
Vought had previously issued a memo cautioning of potential staff reductions if Congress failed to keep the government funded.
Best Personal Loan 2025: Unlock Financial Freedom with Quicken Loans
White House Cancels $8B in Climate and Energy Funding
Amid the shutdown, the administration also announced the cancellation of nearly $8 billion in Department of Energy programs. Vought described the move as halting “Green New Scam” projects that he claimed “fuel the Left’s climate agenda.”
Funding cancellations will affect projects in at least 16 states, including California, New York, Washington, and Massachusetts — all states represented by Democratic senators who opposed a clean continuing resolution.
Social Security Payments Remain Unaffected
The Social Security Administration confirmed that more than 74 million Americans will continue to receive payments on schedule. A spokesperson said retirement, disability, and SSI benefits will not be disrupted, though local offices may reduce some in-person services during the shutdown.
Federal Courts to Operate Through Mid-October
The U.S. Courts announced that all federal courts will remain fully operational through October 17, even if the shutdown continues. Operations will be sustained using existing fee balances and other funds not dependent on new appropriations.
Outlook
While most shutdowns in modern history have been short-lived, the current standoff highlights sharp political divides. The longer the impasse drags on, the more pressure federal workers, agencies, and state projects will face.
