On October 1, 2025, the United States government officially entered a shutdown after President Donald Trump and congressional Republicans failed to secure federal funding in time. The impasse primarily stemmed from Republicans’ refusal to permanently extend enhanced tax credits for Americans enrolled in health insurance under the Affordable Care Act (ACA), a key Democratic priority, with these credits set to expire at the end of the year. This stalemate triggered a lapse in federal funding, forcing many government operations to halt.
A government shutdown occurs when Congress fails to pass appropriations bills or continuing resolutions to fund federal agencies. Historically, before 1980, government agencies largely continued operating during short funding gaps with the expectation that Congress would swiftly resolve the issue. However, legal changes in 1980 and 1981, led by then-Attorney General Benjamin Civiletti, clarified that agencies lack the authority to continue functioning without approved funding, effectively formalizing the shutdown process.
The concept of government shutdowns gained prominence during Ronald Reagan’s presidency, who oversaw eight separate shutdowns. These early shutdowns were generally brief, lasting from one to three days. Over the ensuing decades, shutdowns have become more frequent and politically charged, often reflecting deep partisan divides on budgetary and policy issues. Since 1990, shutdowns have recurred sporadically, with notable spikes occurring in the 1990s, 2013, and the late 2010s.
The 2018 shutdown, which lasted 35 days, was the longest in U.S. history and resulted in an estimated $3 billion in permanent losses according to the Congressional Budget Office. It affected hundreds of thousands of federal employees who were furloughed or forced to work without pay. Experts warn that the current shutdown will similarly have widespread impacts on government workers and services.
To understand the context and consequences of the current shutdown, it is useful to examine the history of government funding lapses over the past four decades, which have often revolved around fundamental disagreements between the executive branch and Congress on spending priorities.
**1980s: The Reagan Era Shutdowns**
During President Ronald Reagan’s two terms, the government experienced eight shutdowns, marked by intense budget disputes between a Republican Senate and a Democratic House. The first shutdown in November 1981 lasted two days and was triggered by Congress passing a spending bill that fell short of Reagan’s requested cuts. Although the Senate had approved the bill, differences with the House version caused a lapse in funding. On Reagan’s veto and government closure, approximately 250,000 federal employees were furloughed. A stopgap measure passed the next day ended the shutdown.
Other Reagan-era shutdowns were often brief, lasting one to three days, and typically arose from disagreements over specific policy provisions. For example, a three-day shutdown was caused by opposition to funding a jobs creation program and the MX missile system. Democrats sought to increase education spending and cut foreign aid, while Reagan pushed for defense funding and opposed certain water projects and crime bills. Many of these disputes were resolved by compromises where Democrats scaled back spending requests and Republicans conceded on some policy riders.
Notably, one shutdown in 1987 involved a confrontation over aid to Nicaraguan Contra rebels and Democrats’ attempt to reinstate the Fairness Doctrine, a policy requiring balanced broadcast coverage that had been repealed. The shutdown ended after Congress agreed to nonlethal aid for the Contras, but Democrats failed to restore the Fairness Doctrine.
**1990s: Bush and Clinton Shutdowns Amid Deficit Battles**
Under President George H.W. Bush, a brief shutdown occurred due to disagreements over deficit reduction plans. Bush threatened to veto short-term funding measures lacking deficit cuts, leading to a government closure until Congress passed a joint budget resolution.
The 1990s saw more prolonged shutdowns during President Bill Clinton’s administration. These were largely driven by clashes with a Republican-controlled Congress led by Speaker Newt Gingrich, who aimed to balance the budget and repeal Clinton’s 1993 tax increases. In 1995, a five-day shutdown resulted from Clinton’s veto of GOP legislation that included Medicare premium hikes and a seven-year budget balance requirement.
The most significant shutdown in recent history occurred later that year, lasting 21 days from mid-December 1995 into January 1996. The impasse centered on budget projection disputes between the Congressional Budget Office and the Office of Management and Budget. Ultimately, Republicans relented, and the government