The federal government shutdown began in the middle of the night on October 1st, as President Trump and Democrats accused him of not reaching an agreement.
Government closure begins after parliamentary leaders disagree
From national park workers to financial regulators, it could air daily while around 750,000 federal employees are closed.
WASHINGTON – The federal government was shut down in the middle of the night on October 1 after President Donald Trump and Congressional Democrats accused them of failing to reach an agreement in a bitter conflict over funding.
It marks the 15th government shutdown since 1981, and is not an immediate end as Congressional Democrats demand changes to health policy that Trump and Republicans refuse to entertain.
It is the threat of massive layoffs that looms in the fight, allowing Trump to end the “huge number” of federal workers. In a recent email, the White House Office of Management and Budget said that the goal is workers whose activities “does not align with the president’s priorities.” A pair of unions representing federal workers filed a lawsuit over the September 30th threat.
The shutdown criticism game has also been ratcheted up. The White House website features a clock counting the hours “Democrats shut down government,” but the Democratic National Committee wrote on social media early October 1 that “Republicans own the closure.”
The closure passed 55 votes, which were short of the 60 vote threshold to beat the Democrats’ filibuster after Senate Democrats blocked Republican proposals to keep the government at existing funding levels until November 21st on Tuesday night.
What does government shutdown mean for mortgage borrowers?
Americans hoping to close their mortgages soon can experience some delays as government functions are reduced for purchases or refinances. Here are some things you need to know:
Most mortgages expected by Fannie Mae and Freddie Mac should not be affected, according to industry participants. However, if you need to verify your Social Security Number, you may run into a delay.
If your mortgage comes from a rural housing program like the US Department of Agriculture, expect delays. As the National Association of Realtors explains in an online memo to members, “New direct and secured home loans, as well as scheduled direct loan closures, will be postponed. Conditional commitments for guaranteed loans are still being reviewed.”
If your mortgage comes from the Veterans Affairs Bureau, you should also expect delays. “Some VA staff and support capabilities may be reduced, which may slow down certifications for approval, evaluation and eligibility requirements,” says NAR.
If they work with housing counselors affiliated with the Housing and Urban Development Agency, the agency may need to reduce or suspend their activities, NAR says.
Buyers in flood-prone regions like Florida and Louisiana may encounter delays as they are not funded by the National Flood Insurance Program. Some lenders may allow you to continue your purchase anyway, but if there’s a storm before you write your insurance, it can cause problems, said Jeff Lichtenstein, president and broker at Echo Fine Properties in South Florida.
“The uncertainty in the market just means that some buyers want to back out,” Lichtenstein told USA Today in an email. “There’s nothing good about these things.”
-yndrea riskier
The White House website has a shutdown clock
Trump is doing everything he can to denounce Democrats for the shutdown, including featuring a shutdown clock on the White House website.
At the top of the website you will see the time since “Democrats shut down government.” There is also a link to a video featuring clips of Democrats criticizing past closures.
The Trump administration has used other government channels to blow up highly partisan shutdown messages, including banners on the Department of Housing and Urban Development website declaring “radical left” shutting down the government.
Democrats say the GOP is responsible for the shutdown.
“Republicans own this closure,” the Democratic National Committee posted on social media early October 1st.
-Zac Anderson
According to the White House, President Donald Trump plans to sign an executive order at 4:30pm on the first day of government shutdowns.
Earlier in the day, Vice President JD Vance will appear on “CBS Mornings” at 7am on EST, according to the network.
At 1 p.m., White House Press Secretary Caroline Leavitt will address reporters during the press conference.
– Sarah D. Wire
When will lawmakers return?
The Senate will be reconvened at 10am Wednesday. Voting is expected at 11am and again in the late afternoon.
On the other hand, the House of Representatives is not a session at all. Republican Mike Johnson’s speech is taking a break from lawmakers to put pressure on Democrats.
– Zac Shermere
About 750,000 federal employees, from national park workers to financial regulators, could be attacked daily during the closure if they withhold about $400 million in compensation daily, according to the nonpartisan Congressional Budget Office.
Other workers in government services, such as military and law enforcement, that are deemed “essential” will continue to work, but will not be paid until a transaction is reached.
– Joey Garrison
Trump also warned that Democrats might fire federal workers under the closure. “We can do things that are irreversible during closures and are grossly irreversible for them. We can cut out a huge number of people, cut out what we like, cut out what we like, cut out what we like during the closure.”
The president later said: “Many profits can get down from the closure. We can get rid of a lot of things we don’t want. They’ll be Democrats.”
The closure is the first since 2019 and came during Trump’s first term, following democratic opposition to Trump’s funding for border walls. It was also the longest closure in 35 days in US history, costing the US economy around $3 billion, according to the Congressional Budget Office.
– Joey Garrison
Democrats have called for a reversal of Medicaid cuts, which Republicans passed this year and include extensions of healthcare subsidies in funding measures.
“He doesn’t understand that if the government closes, people’s health insurance premiums will go up,” New York Democrat Sen. Chuck Schumer said of Trump on Sept. 30 from the Senator’s floor.
Trump and Republicans rebutted by accusing Democrats of illegally providing medical care to immigrants in the country. “That’s what they’re claiming, and obviously, I have an obligation not to accept it,” Trump said. Democrats call Trump’s claims a lie and note that undocumented immigrants are not eligible for payments from Medicare, Medicaid, or Affordable Care Acts.
– Joey Garrison
Democrats and Republicans competed to blame the other side for the closure, but it was still unclear who most Americans would blame.
Schumer seized Trump’s threats regarding federal layoffs to claim the closure was Trump’s closure. “Well, it’s there,” said the Senate minority leader. “Trump has admitted that he is using Americans as political pawns. He admits that if God forbids it to happen, he is firing people.
“The Democrats don’t want to close,” Schumer added. “When he says he’s going to do things, he’s taking ownership.”
But Trump and Republicans are betting that the closure will cause political damage to Democrats, despite Republicans controlling the House, Senate and the White House. A New York Times/Sienna College poll shows 65% of Americans believe Democrats should not shut down their government if demands are not met.
– Joey Garrison
