Policy Playbook: The 2025 Government Shutdown

Just in case you have been avoiding the news for the last three weeks, you may have missed it. The government of the United States of America is in shut down. This week's Policy Playbook breaks it down for you.

What Happened? On October 1, 2025, a partial federal government shutdown began after Congress failed to pass FY2026 appropriations or a continuing resolution (CR). Essential services like defense and Social Security continue, but non-essential operations stopped, furloughing ~600,000 workers and delaying passports and national park access. As of October 18, Day 18, it’s the third-longest shutdown ever.

Why Did It Happen?

A partisan stalemate over short-term funding caused the shutdown. House Republicans passed a clean CR (H.R. 5371, 217-212) on September 19, extending FY2025 levels through November 21 with minor security funds but no major policy changes. Senate Democrats blocked it at least 10 times, demanding health care riders. Without agreement, funding lapsed at midnight on September 30. Republicans blame Democrats for obstructing, while Democrats argue their demands prevent a health care crisis.

How Did It Go Down in the Past?

Since 1980, 14 shutdowns have stemmed from budget disputes, costing $3-6 billion in GDP each. Notable cases:

• 1995-96 (21 days): Republicans pushed spending cuts; President Bill Clinton said no, resolved by compromise CR.

• 2013 (16 days): Republicans sought to defund Obamacare; Democrats said no, ending with a clean CR.

• 2018-19 (35 days): Republicans wanted border wall funds. Republicans returned to the table and voted for a clean CR (H.R. 649) on January 25, 2019, ending the 35-day shutdown without securing the $5.7 billion border wall funding they demanded.

  
  

What Do Democrats Say Republicans Want?

Democrats claim Republicans want to keep government funding tight to push their own agenda later, like bigger tax cuts or border security spending. They say Republicans are ignoring the health care crisis by refusing to add protections for millions who could lose insurance or Medicaid.

What Do Republicans Say Democrats Want?

Republicans say Democrats are demanding expensive health care changes, like bigger insurance subsidies and Medicaid expansions, to score political points. They argue Democrats are holding up the government by insisting on these costly add-ons instead of passing a straightforward funding bill to keep things running.

What’s Needed to Reopen?

A bipartisan CR or full appropriations bill, signed by President Trump, requires 7-8 Senate Democrats to join Republicans for a 60-vote threshold. Talks may blend a short ACA extension with spending offsets, but filibusters and House recesses stall progress. Public pressure from furloughed workers may force a deal, as in past shutdowns.

Now What's a CR Again?

A Continuing Resolution (CR) is a short-term funding bill that keeps the government running at last year’s spending levels when Congress misses the October 1 deadline for a full budget. It lasts weeks or months, maintaining operations without new policies to prevent shutdowns until final budget talks wrap up. A clean CR is a straightforward version of this bill that includes no extra policy changes or "riders," like new health care rules or border wall funds, focusing only on keeping government funded as-is.

Congress keeps pushing to the brink because both parties prioritize political wins over compromise. Democrats and Republicans often hold out, attaching demands like health care or border funds to force their agenda, stalling budgets. This brinkmanship stems from divided government and election-year posturing, risking economic harm instead of responsible planning.