US Federal Government Shut Down – What does it mean?
The federal government officially entered a shutdown at 12:01 a.m. Wednesday amid an impasse on Capitol Hill over competing congressional funding proposals. Without necessary funding legislation—known as appropriations bills—or a temporary measure called a “continuing resolution” to finance federal agencies and operations, the government must cease non-essential functions until new funding is approved.
Thus, as of October 1, 2025, non-essential federal employees are placed on temporary, unpaid leave, known as a furlough. Essential or “excepted” employees, such as air traffic controllers, law enforcement agents, and military personnel, are required to work without pay, although most often will receive back pay once the appropriations bills are passed. This does not, however, apply to most federal government contractors.
Some U.S. government agencies do not shut down during a lapse in appropriations because they have alternate funding sources or operate with permanent appropriations. These include The U.S. Postal Service, the Federal Reserve, the Social Security Administration and programs like Medicare and Medicaid. The last government shutdown, under the first Trump administration lasted 35 days. ISPA will keep the membership updated on major developments.