Minute by Minute: U.S. Government Shutdown and All the Details

Minute by minute of the US government shutdown 2025

Economic data at risk

Republicans and Democrats clash

Since midnight Wednesday, the US federal government has entered a partial shutdown.

The Senate failed to approve budget proposals presented by both Democrats and Republicans.

This is the first shutdown of its kind in nearly seven years.

Disagreements over public spending and healthcare blocked compromise attempts.

White House Warns of Imminent Layoffs

Minute by Minute: US Government Shutdown 2025 – Photo: Shutterstock

The White House warned Wednesday that layoffs of public employees are “imminent” as a result of the federal government’s partial shutdown, after Congress failed to reach a deal.

Spokeswoman Karoline Leavitt blamed Democrats for the deadlock and said the measure aligns with the Trump administration’s goal of reducing government size. She gave no details on timing or numbers.

Office of Management and Budget Director Russell Vought stated that layoffs could take place within two days, as agencies have already identified “non-essential” programs to cut.

According to official estimates, 750,000 federal workers have been furloughed without pay, while more than 1.5 million — including military personnel and air traffic controllers — continue working without salary until a new budget is passed.

Senate Fails to End the US Government Shutdown 2025

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On Wednesday, the Senate voted on two proposals to partially reopen the government. The Democratic initiative was defeated 53-47, while the Republican plan received 55 votes in favor and 45 against.

Neither reached the 60 votes needed for passage, confirming gridlock in the chamber. This was the first failed attempt since the shutdown began.

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The outcome highlights Washington’s deep political division and the difficulty of finding a common solution. Both parties remain entrenched in their positions on how to allocate public resources.

For now, the shutdown continues to affect non-essential services and threatens to extend into critical areas if the stalemate lasts longer than expected.

Economic Data at Risk from US Government Shutdown 2025

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The Bureau of Labor Statistics (BLS) reported its website stopped updating due to the shutdown, jeopardizing release of the September jobs report, scheduled for October 3 — a key indicator for markets and the Federal Reserve.

The lack of fresh data complicates the Fed’s upcoming meeting on October 28–29. Analysts expect a 0.25% interest rate cut but warn that uncertainty could alter decisions.

The shutdown could also delay the inflation index release scheduled for October 15, further undermining the Fed’s ability to act on evidence.

Economists note that, in the absence of official data, private sources like ADP will gain weight. ADP already reported a loss of 32,000 private sector jobs in September.

Republicans and Democrats Blame Each Other

US Government Shutdown 2025- Photo: Shutterstock

Vice President JD Vance accused Democrats of holding the budget “hostage” to increase healthcare spending. On Fox News he said: “You cannot hold the government hostage just because you want to negotiate healthcare costs.”

Vance insisted Republicans are willing to negotiate, but only after reopening the government. He expressed confidence that political pressure would eventually force Democrats to yield.

Meanwhile, Senate Democratic leader Chuck Schumer told NBC that his caucus “will not back down” on protecting healthcare coverage for Americans. He said the shutdown was the result of Republican refusal to expand access.

Both parties remain locked in confrontation, raising the risk of a shutdown lasting weeks. While essential services continue, delayed paychecks for employees are heightening social pressure on Congress.

Impact on Services and Wall Street Reaction

US Government Shutdown 2025 – Photo: Shutterstock

During the shutdown, essential agencies — including the military, airports, and Social Security — continue operating, but their workers go unpaid until a budget is passed. Thousands of non-essential employees have been furloughed without pay.

The Trump administration is also considering using the crisis as an opportunity to permanently reduce federal staff, a move sparking controversy among unions.

Financial markets reacted with early losses: the Dow Jones fell 0.02%, the S&P 500 slipped 0.17%, and the Nasdaq dropped 0.27%, reflecting investor concerns.

However, Wall Street closed September and the third quarter with gains, boosted by tech stocks leading artificial intelligence development, softening the immediate impact of the shutdown, according to EFE and Univisión.