The US government is heading toward a shutdown. What does that mean?

The U.S. Capitol.
The U.S. Capitol.
Reuters

The US government looks set to shut down this Sunday after House Republicans indicated that they would not support a bipartisan Senate bill that would fund the federal government past this weekend’s deadline.

Absent a last-minute agreement, many federal agencies could soon shut down, while millions of federal workers could be placed on furlough without pay due to a lapse in funding from Congress, which controls the purse strings.

What led to the current stalemate and what does it mean?

You might recall that, back in June, House Republicans agreed at the eleventh hour to raise the federal debt limit to avoid the government defaulting on its loans for the first time in history. As part of that agreement, Republicans and the White House agreed to spending caps on funding bills for the next two years that aimed to avoid this sort of impasse until after the next presidential election.

But that is now up in the air as a number of “tear-it-all-down” Republicans are refusing to fund the government – an annual procedural measure – and are calling for deeper spending cuts. Crucially, they also oppose ongoing funding to Ukraine.

Meanwhile, House Speaker Kevin McCarthy, overseeing one of the slimmest congressional majorities in decades, is hesitant to pass a funding bill with the backing of House Dems that these vocal members of his own caucus oppose, fearing they would call a vote seeking his ouster. What’s more, to appease the right flank of his party, McCarthy gave his caucus the go-ahead to start an impeachment inquiry into President Biden (the hearing will kick off Friday), but that doesn't seem to have gotten the hardliners to back off.

Indeed, this whole dance makes for very bad politics for the GOP considering that 77% of US voters don’t want the government to close.

What happens if the government shuts down? While some government departments – like the military – will continue to function, hundreds of thousands of workers (out of 4 million government employees) will be told to stay home without pay. The last time the government shut down in 2018 for 35 days, it cost the US economy a whopping $11 billion.

Plus: We asked Jon Lieber, head of Eurasia Group's coverage of political and policy developments in Washington, DC, to share his view on how long the shutdown may last. Hear what he had to say here.

More from GZERO Media

After voters elected her to the Wisconsin Supreme Court, liberal candidate Judge Susan Crawford celebrates with Wisconsin Supreme Court Judge Ann Walsh Bradley at her election night headquarters in Madison, Wisconsin, on April 1, 2025.

REUTERS/Vincent Alban

Republicans expanded their lean House majority after a pair of special elections in Florida, but a conservative candidate lost badly in a Wisconsin judicial race — despite a huge cash injection from Elon Musk.

- YouTube

If China, Japan, and South Korea formed a united front, what kind of leverage would they have in negotiating against US tariffs? I think they are heading in that trajectory. The question is, will it be enough to keep Syria stable and away from descending into civil war? Why does Trump want to take Greenland? Ian Bremmer shares his insights on global politics this week on World In :60.

President Donald Trump, seen here on the South Lawn of the White House in February, is set to unveil his "Liberation Day" tariffs.

REUTERS/Craig Hudson

T-Day has arrived. On Wednesday afternoon, Donald Trump’s reciprocal tariffs on US trade partners will take effect immediately after a Rose Garden announcement.

A giant screen in Beijing shows news footage about the People's Liberation Army (PLA) joint army, navy, air and rocket forces drills around Taiwan on April 1, 2025.
REUTERS/Florence Lo

Beijing conducted one of the largest and most provocative military drills ever around the island -- but why now?

President of Ukraine Volodymyr Zelenskyy speaks during a briefing, Kyiv, Ukraine, on March 28, 2025.
Ukrinform/ABACA via Reuters Connect

Vladimir Putin insists that Volodymyr Zelensky is no longer Ukraine’s legitimate president because his government has imposed martial law and delayed elections that were due in 2024.

President Donald Trump speaks from the Oval Office flanked by Commerce Secretary Howard Lutnick on the day he signed executive orders for reciprocal tariffs, Feb. 13, 2025.
REUTERS/Kevin Lamarque

Details of a group chat between senior administration officials that leaked last week – the so-called Houthi PC small group – provide allies, adversaries, and watchers with revealing insights into the administration’s foreign policy blueprint. Lindsay Newman explores the takeaways.

Proud Source became a Walmart supplier in 2021. Today, its team has grown by 50%, and it's the largest employer in Mackay, ID. Walmart supports small businesses across the country, and nearly two-thirds of Walmart's product spend is on products made, grown, or assembled in America. It’s all a part of Walmart’s $350 billion investment in US manufacturing, which helps small businesses grow and supports US jobs. Learn more about Walmart’s commitment to US manufacturing.