US Government Shutdown Incoming?

ftan42

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A partial US government shutdown has begun, effective October 1, 2025, after Congress failed to pass the necessary funding bills by the deadline. This marks the first shutdown in nearly seven years, resulting from a stalemate over funding for the new fiscal year. The impasse arose from a disagreement between Senate Republicans and Democrats, who were at odds over the inclusion of policy attachments in the funding bill, with Democrats seeking a commitment to address expiring health care subsidies and Republicans pushing for a "clean" funding measure without any attachments.
 

Government shutdown live updates: Funding ends after Trump, GOP, Democrats fail to cut deal​

Kevin Breuninger
This is CNBC’s live blog for the first day of the U.S. government shutdown on Oct. 1, 2025. Please refresh the page throughout the day for new updates.
The US Capitol in Washington, DC, US, on Monday, Sept. 29, 2025. President Donald Trump met with top Democratic and Republican congressional leaders to resolve Democrats' demands, but the two sides left no closer to resolving their differences. Photographer: Al Drago/Bloomberg via Getty Images

The US Capitol in Washington, DC, US, on Monday, Sept. 29, 2025.
Al Drago | Bloomberg | Getty Images
The United States government shut down early Wednesday morning, setting the stage for the furlough of hundreds of thousands of federal workers and the shuttering of a slew of key programs and services.

Here’s what to know:

  • The full shutdown began after top Democrats and Republicans, including President Donald Trump, failed to agree on a short-term deal to keep the government funded.
  • Democrats, led by Sen. Chuck Schumer and Rep. Hakeem Jeffries, demand that any stopgap funding measure include an extension of enhanced Obamacare tax credits.
  • Trump suggested Tuesday that his administration could take major actions during a shutdown, including cutting government benefits for “large numbers of people.”
  • The Senate adjourned after last-ditch votes on Republican and Democratic funding proposals both failed to pass.
 
A partial US government shutdown has begun, effective October 1, 2025, after Congress failed to pass the necessary funding bills by the deadline. This marks the first shutdown in nearly seven years, resulting from a stalemate over funding for the new fiscal year. The impasse arose from a disagreement between Senate Republicans and Democrats, who were at odds over the inclusion of policy attachments in the funding bill, with Democrats seeking a commitment to address expiring health care subsidies and Republicans pushing for a "clean" funding measure without any attachments.

Luckily Nancy Pelosi is on the side of the Republicans

 
Luckily Nancy Pelosi is on the side of the Republicans


Shutdown to improve the share markets further
During the majority of the shutdown period, the share market has consistently performed well, with a notable increase since the 1980s till present. Notably, since 2010, there have been three shutdowns, resulting in an average gain of 4.7% during these periods. Specifically, the 2018-2019 shutdown, which lasted for 35 days, saw a remarkable gain of 10.3%, while the 6.9% gain reported for this period is also noteworthy.
Lobang for SBF investors not to miss during the US shutdown period and regretted later
 
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