Updated: October 1, 2025, 2:15 p.m. ET
The government shutdown 2025 update: Federal funding for the new fiscal year is in flux as Congress negotiates short-term and full-year spending. Agencies follow contingency plans only after formal notice of a lapse. Here’s what a shutdown would mean, what stays open, who could be furloughed, and the key dates to watch as lawmakers work on a deal. We will update this page as official statements and verified reports post.
What happened
As the federal fiscal year turned on October 1, 2025, congressional leaders continued talks on stopgap and full-year appropriations. A shutdown begins only if funding lapses and the White House Office of Management and Budget (OMB) instructs agencies to implement contingency plans, according to OMB guidance [[source:https://www.whitehouse.gov/omb/]] and the Congressional Research Service [[source:https://crsreports.congress.gov/product/pdf/RL/RL34680]].
Key points as of October 1, 2025 (2:15 p.m. ET):
- Agencies execute an “orderly shutdown” only after receiving OMB direction. Until then, employees typically report as scheduled unless told otherwise [[source:https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/]].
- Essential services (e.g., national security, air traffic control, certain public safety operations) continue during any lapse; non-excepted work pauses and many employees are furloughed without pay until funding resumes [[source:https://www.dhs.gov/news/2019/01/25/what-government-shutdown-means-operations-dhs]].
- Benefits like Social Security and Medicare continue, though some customer service may be delayed; mail continues because USPS is self-funded [[source:https://www.ssa.gov/news/]] [[source:https://facts.usps.com/top-facts/]].
Note: Because verified, minute-by-minute updates may post first on wire services and official channels, we are continuously monitoring OMB, OPM, and major outlets for any formal lapse notice or enacted funding bill. We will update this story when a definitive status is published by officials or corroborated by multiple national outlets.
Why it matters
A partial or full U.S. government shutdown can disrupt pay for millions of federal workers and service members, delay federal grants and contracts, slow certain economic data releases, and close or reduce access to some public facilities like national parks. Even brief lapses can ripple through local economies that depend on federal activity.
- Federal employees and contractors: Non-excepted employees are furloughed without pay during the lapse. Excepted employees may work without pay, with back pay provided after funding is restored under current law. Contractors’ pay depends on contract terms and agency instructions [[source:https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/]].
- Benefits recipients: Social Security, Medicare, Medicaid, and SNAP largely continue because they are mandatory programs, though some services may slow due to staffing reductions [[source:https://crsreports.congress.gov/product/pdf/RL/RL34680]].
- Travel and public safety: Transportation Security Administration and air traffic control operations continue, but staffing pressures can create delays. Federal law enforcement and border security continue as excepted activities [[source:https://www.faa.gov/]] [[source:https://www.dhs.gov/]].
- Economy and markets: Prior shutdowns modestly weighed on quarterly GDP and consumer confidence; extended lapses increase the drag and complicate federal data releases that businesses and investors use [[source:https://www.bea.gov/]] [[source:https://www.bls.gov/]].
For businesses that rely on federal permits, loans, or data, a shutdown can introduce planning uncertainty and cash flow risks. Households may face delays in services like passport processing if fee-funded operations narrow, and visits to some national parks could be curtailed depending on agency plans.
Context & background
What does government shutdown mean? A government shutdown occurs when Congress fails to enact annual appropriations or a stopgap continuing resolution (CR) and funding authority lapses. Agencies must halt non-excepted operations under the Antideficiency Act. Excepted (sometimes called “essential”) activities related to safety of life or protection of property continue [[source:https://www.gao.gov/products/b-331132]].
How we verified: We prioritize official guidance and top-tier U.S. outlets. As of October 1, 2025, there were limited official on-the-record updates publicly posted within the last four hours accessible to us at the time of publication. We therefore broadened our window to authoritative guidance and explainer resources updated within the past 12 hours, and we are monitoring for a formal OMB lapse notice or a signed funding measure. We will refresh this article as soon as those are published by officials or corroborated by at least two national outlets (e.g., AP, Reuters, Bloomberg).
Recent history: Congress often averts shutdowns with short-term CRs while negotiating full-year bills. During prior lapses, federal workers were furloughed and received back pay after funding resumed under enacted law. Agencies publish contingency plans in advance so employees and the public can understand which operations would continue and which would pause [[source:https://www.whitehouse.gov/omb/]] [[source:https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/]].
Key players: House and Senate leadership, the House and Senate Appropriations Committees, the White House Office of Management and Budget (OMB), the Office of Personnel Management (OPM), and agency budget officers who manage contingency plans.
What to watch next
Keep an eye on official statements and floor schedules. Here’s a general timeline for the next steps and signals that determine whether there is a government shutdown or averted lapse:
Timeline and milestones
- October 1, 2025: Start of Fiscal Year 2026. If no CR or appropriations are enacted and signed, OMB may issue a lapse directive and agencies begin shutdown procedures [[source:https://www.whitehouse.gov/omb/]].
- Same day: House and Senate floor actions on CR or minibus/omnibus packages; watch for roll-call votes and any fast-track unanimous consent in the Senate. Leadership press conferences typically follow votes.
- Presidential action: If Congress passes a stopgap or full-year bills, the President must sign for them to take effect. Signing statements and OMB bulletins follow shortly thereafter.
- Agency notices: If a lapse occurs, agencies notify employees with reporting instructions and furlough status; excepted employees receive work requirements and timekeeping guidance [[source:https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/]].
- Post-lapse: Once funding resumes, back pay timelines are communicated to federal employees; contractors receive contract-specific guidance from contracting officers.
How to track status
- OMB website and bulletins for any formal lapse announcement or CR implementation [[source:https://www.whitehouse.gov/omb/]].
- OPM guidance for furlough and leave instructions [[source:https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/]].
- Congressional leadership feeds and House/Senate floor calendars for vote timing [[source:https://www.senate.gov/legislative/calendars.htm]] [[source:https://clerk.house.gov/Home/LegislativeCalendar]].
- Major outlets (AP, Reuters, Bloomberg) for rapid wire updates and confirmation of votes or signatures.
Continuing resolution vs. shutdown: quick comparison
| Item | Continuing Resolution (CR) | Shutdown (Funding Lapse) |
|---|---|---|
| Government operations | Continue at prior-year or specified rates | Only excepted services continue; many functions pause |
| Federal pay | Paid on normal schedule | Excepted work without pay; furloughed unpaid until back pay |
| Public services | Mostly normal; some new starts limited | Delays/closures at parks, permits, data releases possible |
| Economic impact | Lower uncertainty; limited fiscal drag | Rising uncertainty; larger near-term drag as lapse lengthens |
If you’re affected: a short checklist
- Federal employees: Watch for agency emails/texts. Confirm whether you are excepted or furloughed. Track timekeeping per OPM guidance. Avoid volunteering to work if furloughed [[source:https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/]].
- Contractors: Contact your contracting officer for stop-work or funding instructions. Document idle time per contract terms and consult employer HR.
- Benefits: Social Security/Medicare continue; use online portals for routine issues. Expect longer call wait times [[source:https://www.ssa.gov/]].
- Travelers: Arrive early at airports in case of staffing strains. Check agency sites for park or passport updates.
- Personal finance: Build a short-term budget buffer if pay is delayed. See emergency savings tips: how-to-build-a-portfolio.
Key takeaways
- A shutdown starts only if OMB issues lapse instructions after funding expires; otherwise agencies continue normal operations.
- Excepted services continue; many others pause. Federal workers receive back pay when funding resumes.
- Benefits like Social Security continue, but some services may slow.
- Watch OMB, OPM, and congressional calendars for definitive status changes and vote timing.
Related coverage and explainers:
- Understanding federal benefits during disruptions best-online-certifications
- Personal budgeting under uncertainty how-to-build-a-portfolio
Sources: Official OMB guidance on agency operations [[source:https://www.whitehouse.gov/omb/]], OPM furlough and pay rules [[source:https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/]], CRS explainer on shutdown mechanics [[source:https://crsreports.congress.gov/product/pdf/RL/RL34680]]. We will add wire service confirmations (AP/Reuters/Bloomberg) when new votes or signatures are posted.
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