U.S. government shuts down after funding fight

The U.S. federal government shut down at midnight on Oct. 1 Eastern time, 1 p.m. the same day in Seoul, after Republicans and Democrats failed to agree on a seven-week stopgap bill to fund the government for the 2025 fiscal year, which runs from Oct. 1, 2024, to September 2025. The standoff hardened into a game of chicken that yielded no deal.

Large portions of federal operations are suspended, sending many civil servants on furlough and curtailing public services. Trade talks with countries including South Korea could be affected. Plans to impose new tariffs on pharmaceuticals and other items starting Oct. 1 may slip, a South Korean Industry Ministry official said, noting that administrative orders would be delayed if U.S. federal staff are not at work. Even with a shutdown, the office of the U.S. Trade Representative said it will continue to press ahead, according to World Trade Online on Sept. 30.

It is the first shutdown since the 35-day lapse from December 2018 to January 2019 under then-President Donald Trump, when the parties fought over border wall funding. The current dispute centers on money tied to the Affordable Care Act. Republicans argue for cuts; Democrats warn reductions would hurt low-income Americans. On Sept. 30, Republicans tried to pass the stopgap bill in the Senate, but it failed 55–45, short of the 60 votes needed. Republicans hold 53 of 100 seats, with one member voting no, while two Democrats and one independent sided with the GOP.

The Congressional Budget Office estimates at least 750,000 federal employees will be furloughed. The Bureau of Labor Statistics will pause all data collection and releases, making it unlikely the September jobs report set for Oct. 3 will be published. National parks will close. Essential functions, including national security, health care, law enforcement, and air traffic control, will continue.


Jin-Woo Shin niceshin@donga.com