US Faces Federal Government Shutdown as Fiscal Year Ends Tuesday

The United States is on the brink of a federal government shutdown as the current fiscal year ends at midnight Tuesday. Congress has yet to reach a deal, and if negotiations fail, several federal services could be suspended for up to seven weeks until a new annual spending bill is passed.

Standoff Between Republicans and Democrats

This year’s potential shutdown is fueled by a political deadlock between President Donald Trump’s team and congressional Democrats over healthcare and federal spending. Senate Democrats have demanded that any House measure extending federal funding must also include the continuation of expiring healthcare benefits and other provisions. President Trump and Republican lawmakers, however, are pushing for a "clean" funding bill, arguing it should be noncontroversial and free of additional policy demands.

Vice President JD Vance has publicly warned that the government is “headed to a shutdown,” blaming Democrats for blocking an agreement. It remains uncertain if either side will compromise before the Tuesday midnight deadline.

Impact on Federal Workers

If the shutdown occurs, federal agencies are legally required to stop operations, furloughing “non-excepted” employees. Excepted employees—those tasked with protecting life and property—must continue working but will not be paid until the shutdown ends.

During the 35-day partial shutdown in Trump’s first term, about 340,000 of 800,000 affected federal workers were furloughed, while the remainder continued working under "excepted" status. Congress passed a law in 2019 requiring that furloughed employees receive retroactive pay once operations resume.

Agencies That Will Continue to Operate

Essential services and programs will continue. This includes:

• FBI and CIA operations

• Air traffic control and airport security

• Armed Forces

• Social Security payments and Medicare services

• Veterans Affairs medical centers, outpatient clinics, and benefits processing

• The US Postal Service, which operates independently of federal tax funding

Programs funded through mandatory spending, such as Social Security, Medicare, and veterans’ benefits, generally continue uninterrupted.

Other Agencies and Their Shutdown Plans

• Health and Human Services (HHS): Around 41% of its nearly 80,000 employees would be furloughed. The remaining staff will focus on life-saving and protective functions.

• Centers for Disease Control and Prevention (CDC): Will continue disease outbreak monitoring. Public communications may be limited.

• National Institutes of Health (NIH): Direct medical services will continue, but new patient admissions will be restricted to urgent cases.

• Food and Drug Administration (FDA): Activities such as new drug applications and medical device reviews will be paused or delayed.

• Education Department: Approximately 1,500 of 1,700 employees will be furloughed, excluding federal student aid staff. Student aid programs, including Pell Grants and Federal Direct Student Loans, will continue, though new grants may be paused.

• National Park Service: Park facilities will remain open where access cannot be physically restricted. Staff presence will vary by park.

Air traffic could also be indirectly affected, as training for new air traffic controllers and routine background checks may stop during the shutdown.

As the fiscal year deadline approaches, millions of Americans face uncertainty over federal services. Lawmakers continue to negotiate, but with both sides maintaining firm positions, a shutdown appears increasingly likely.