Government shutdown 2025: What to know about federal layoffs, Social Security

WASHINGTON ‒ The federal government shut down at midnight as President Donald Trump and congressional Democrats blamed each other for failing to reach an agreement in a bitter standoff over funding the government.

It marks the 15th government shutdown since 1981, and there’s no immediate end in sight as congressional Democrats demand health-care policy changes that Trump and Republicans have refused to entertain.

Looming over the fight is the threat of mass layoffs, with Trump saying "vast numbers" of federal workers could be terminated. The White House Office of Management and Budget said in a recent email that workers whose activities are “not consistent with the President’s priorities” are a target, and Vice President JD Vance told reporters that the administration will "have to lay people off" if a shutdown extends for weeks.

The shutdown blame game also is ratcheting up. The White House website features a clock counting the amount of time "Democrats have shut down the government," while the Democratic National Committee wrote on social media early Wednesday that "Republicans own this shutdown."

Keep up with live coverage across the USA TODAY Network.

Mass federal layoffs will begin in 'a day or two,' budget chief says

Russ Vought, director of the White House Office of Management and Budget, told House Republicans in a private call Wednesday that mass layoffs of federal workers will begin in "a day or two," according to a lawmaker on the call.

Vought's timeline for so-called "reductions in force" of federal workers comes as President Donald Trump has warned Democrats that he could choose to eliminate “vast numbers" of federal workers under a government shutdown, which started Wednesday.

White House press secretary Karoline Leavitt, during a briefing with reporters, did not elaborate on which federal departments could be affected but said layoffs are "imminent.”

Read more here.

- Joey Garrison 

Statue of Liberty may go dark, New York governor warns

The Statue of Liberty may go dark during the federal government shutdown, New York Gov. Kathy Hochul said on Wednesday.

With Lady Liberty as a backdrop, the New York Democrat stood alongside state elected officials and union representatives to call out Republicans in Washington, D.C., for the shutdown’s effects on entitlement programs, as well as closures to services and parks. This may include Liberty Island and nearby Ellis Island, the historic entry to the United States for millions of people who became Americans. Lady Liberty, dedicated nearly 140 years ago in New York Harbor, has symbolized the country’s embrace of immigrants.

Hochul said New York wouldn’t pay to keep the Statue of Liberty open during Washington's budget fight as the state had done before.

“Today, the torch she holds — as a beacon to others, a symbol — could literally go dark,” Hochul said. “Not because of an act of God or a horrific storm, flood or hurricane. But literally because Donald Trump and Republicans in Washington forced a government shutdown.”

Neither the National Park Service nor the Department of Interior immediately responded to emailed questions about keeping Liberty and Ellis islands open. 

During previous government shutdowns, former Gov. Andrew Cuomo used state funds to keep the Statue of Liberty open. The federal shutdown in 2018-19 cost about $1.5 million to keep the Statue of Liberty and Ellis Island open, Gothamist reported.

Read more here.

- Eduardo Cuevas

Why are lawmakers fighting over health care?

Republicans are claiming Democrats shut down the government to demand free health care for undocumented immigrants. But these migrants are largely ineligible for federal health benefits, said Leo Cuello, a professor at Georgetown University's McCourt School of Public Policy.

They don't qualify for comprehensive Medicaid coverage, Medicare or the Children's Health Insurance Program. And they can't purchase federally subsidized health plans on exchanges backed by the Affordable Care Act. There are legal immigrants on Medicaid in the United States, so-called "qualified aliens" who were previously eligible for Medicaid coverage.

According to the nonpartisan Congressional Research Service, they included only lawful immigrants: legal permanent residents, refugees, people granted asylum, people granted humanitarian parole including Ukrainians and Afghans, certain Cubans and Haitians; and certain victims of human trafficking and domestic violence, among others.

The new tax and spending law Trump signed in July restricts eligibility only to U.S. citizens, legal permanent residents – i.e. green card holders – as well as some Cuban and Haitian immigrants.

There is no proposal to provide free health care to people living in the country illegally.

– Lauren Villagran and Sarah Wire

Shutdown stalls case against ICE in Chicago

The shutdown has also stalled a case against the Department of Homeland Security over the agency’s immigration enforcement crackdown known as Operation Midway Blitz. 

The National Immigrant Justice Center and the American Civil Liberties Union of Illinois filed documents in federal court over U.S. Immigration and Customs Enforcement (ICE) arrests in the Chicago area. The arrests violated a settlement agreement with ICE dating back to 2022 that barred many vehicle stops and arrests made without a warrant, according to defense attorneys.

A spokesperson for the Northern District of Illinois federal court confirmed that a hearing set for Oct. 3 over potential violations to the Castañon Nava consent decree was delayed following the shutdown. 

In a statement to USA TODAY, Mark Fleming, associate director of litigation at the National Immigrant Justice Center, urged the court to take up the case again: "We urgently need the court to weigh in to hold the Trump administration accountable for its ongoing immigration raids in the Chicago area, where federal agents are detaining people, including children, without warrants or probable cause, and using increasingly violent tactics to do so."

The case comes as parts of the region say that Trump’s Midway Blitz amounts to a siege and as Illinois leaders fear masked federal agents will spark protests the White House will use the National Guard to quell. 

Jeffries says Trump behaving 'erratically,' hits back over sombrero videos

House Minority Leader Hakeem Jeffries says he had not heard from the White House since congressional leaders left the property after a meeting with President Donald Trump on Monday.

Jeffries said Trump, who has been posting AI-generated videos of the Democratic leader in a mustache and sombrero, has been behaving "somewhat erratically" since the meeting and does not seem to be interested in coming up with a resolution to the government shutdown that began on Wednesday.

"It would seem to me that as the president of the United States, on the brink of a government shutdown, if you actually wanted to bring everyone together to try to get to a resolution in a common-sense, bipartisan way, that's not the type of behavior that we would see," Jeffries said on The Lead with Jake Tapper on CNN.

Vice President JD Vance told reporters at the White House earlier in the day that Trump was "joking" when he shared the memes that Jeffries and others have criticized as racist.

But Jeffries said he did not want to dwell on the videos. "The broader problem is it's deeply unserious, and this is a serious moment. We need to reopen the government," Jeffries told CNN.

- Francesca Chambers

First DOGE. Now shutdown. Federal workers see tough year.

It’s been a tough year to be a federal worker.

Potential widespread layoffs under the government shutdown are just the latest in a tough year for federal workers that’s already seen over 200,000 civil servants leave the workforce, according to the Partnership for Public Service.

Early cuts to the federal workforce came at the hands of Elon Musk’s "U.S. Department of Government Efficiency”, a project Trump established on Jan. 20 to reduce spending and eliminate “waste, bloat, and insularity” in the federal bureaucracy. Among those who left were 150,000 federal workers who took the White House’s "Fork in the Road" buyout offer, provided early in the Trump administration.

But some are pushing back. In response to potential layoffs under the shutdown, the American Federation of Government Employees and the American Federation of State, County and Municipal Employees on Sept. 30 filed a lawsuit challenging the administration’s threats of a mass firing saying it was designed to “inflict punishment on, and further traumatize, federal employees throughout the nation.”

These actions are a “cynical use of federal employees as a pawn in Congressional deliberations should be declared unlawful and enjoined by this Court,” the lawsuit said.

Read more here.

— Swapna Venugopal Ramaswamy

Federal spending cuts to Democratic states

For the second time today, Office of Management and Budget Director Russ Vought announced a cut to federal funding to Democratic led states.

On social media Vought said that he would cancel funding for green energy projects in 16 Democrat-led states.

"Nearly $8 billion in Green New Scam funding to fuel the Left's climate agenda is being cancelled," Office of Management and Budget Director Russ Vought said in a social media post.

He said the cuts would impact California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Minnesota, New Hampshire, New Jersey, New York, Oregon, Vermont, and Washington.

Earlier in the day Vought announced that $18 million for two of New York city’s largest projects in decades — the 2nd Avenue subway expansion and the Hudson River rail tunnel — were on hold.

Washington's Democratic Sen. Patty Murray, the highest ranking Democrat on the Senate Appropriation's Committee, decried the "mafioso tactics."

"We're less than a day into this shutdown, and Trump & Vought are illegally punishing Democrat-led states," Murray said on social media.

- Sarah D. Wire

White House plays AI videos of Jeffries in sombrero

President Donald Trump is doubling down on his portrayal of House Democratic Leader of Hakeem Jeffries in a fake mustache and sombrero.

On the first day of a government shutdown, the White House on Tuesday afternoon started playing the controversial AI-generated videos featuring Jefferies in a mustache and sombrero on loop in the press briefing room.

Vice President JD Vance earlier in the day brushed off criticism from Jeffries and other Democrats who have called the videos racist. The videos, which are playing on a pair of large television screens in the briefing room, also include made up audio of Schumer making derogatory comments about immigrants, as mariachi music played in the background.

“The president's joking,” Vance said when asked about the videos. “And we're having a good time.”

The vice president added: “Hakeem Jeffries said it was racist, and I know that he said that, and I honestly don’t even know what that means. Like, is he a Mexican-American that is offended by having a sombrero meme?”

- Joey Garrison 

What does a government shutdown mean for student loans? What about FAFSA?

In the event of a government shutdown, borrowers would still be required to make payments on their outstanding student debt. 

The Department of Education will continue to disburse Pell Grants and Federal Direct Student loans, according to the department’s contingency plan. As available, permanent and multi-year appropriations will also be used to continue processing Free Applications for Federal Student Aid, or FAFSA, the plan said. 

During a lapse in funding, the department would cease any new grantmaking activities; however, grant programs typically make awards over the summer.

Borrowers with a question or dispute related to their loan may have a tougher time reaching the department, as it plans to furlough the majority of its staff. 

Experts say while most borrowers won’t “feel” a short shutdown, more issues could arise the longer it takes those in Washington to make a deal. 

− Rachel Barber 

Federal agency websites blame Democrats for shutdown

The websites of several Cabinet-level agencies now have banners blaming Democrats for the government shutdown rather than the routine language noting that a “lapse in funding” has occurred and response times might be slower.

The Department of Housing and Urban Development was the first to take a political approach, putting up its banner Tuesday.

The USDA’s website blames “Radical Left Democrat shutdown” for the page not being updated.

The DHS website says “Mission-critical activities of HHS will continue during the Democrat-led government shutdown. Please use this site as a resource as the Trump Administration works to reopen the government for the American people.”

The Justice Department claims “Democrats have shut down the government.”

“Due to the Democrat-led shutdown, website updates will be limited until full operations resume,” the State Department’s site says.

The Treasury Department states “The radical left has chosen to shut down the United States government in the name of reckless spending and obstructionism.”

Several agencies including the Education, Labor and Transportation departments simply refer to a lapse in funding.

- Sarah D. Wire

What does it mean to be furloughed?

A furlough is the "placing of an employee in a temporary nonduty, non-pay status because of lack of work or funds, or other non-disciplinary reasons," according to the Office of Personnel Management (OPM).

When an agency does not have enough funds, such as in the case of a government shutdown, a “shutdown” furlough occurs and those employees not categorized as "excepted," or essential, pause their work.

TSA warns of possible delays

Travelers heading to the airport don’t need to worry about TSA disruptions from the government shutdown – at least for now.

The agency said on X that about 61,000 of its 64,000 employees are considered essential and will continue screening passengers, though their paychecks may be delayed until funding resumes. TSA warned that an extended shutdown could eventually lead to longer wait times, with past shutdowns showing rising absences among TSA and FAA employees can snarl air travel.

For now, flights and security operations are expected to run normally, but travelers should monitor flight status and security line updates if the shutdown continues.

– Zach Wichter

Millions of Medicare recipients could lose access to telehealth, in-home care

Seniors who rely on Medicare could face major changes and new barriers to receiving medical care during the shutdown. Two COVID-era programs that expanded access to healthcare expired on Tuesday, despite having largely bipartisan support: One provided greater flexibility around telehealth and another allowed hospitals to continue high-level care at home.

As part of the shutdown, Congress missed the deadline on extending telehealth programs for Medicare beneficiaries, meaning previous restrictions will go back into place.

Therefore, patients can no longer receive telehealth from home unless they meet specific criteria. Telehealth flexibility will again be limited to rural areas; audio-only visits will no longer be reimbursed for most services; and physical therapists, occupational therapists, speech-language pathologists and audiologists will be excluded from telehealth reimbursement.

– Mary Walrath-Holdridge

Yes, Congress and the president receive salaries during a government shutdown

Congressional lawmakers and the president continue to receive paychecks during a shutdown under Article I, Section 6 of the Constitution.

“The Senators and Representatives shall receive a Compensation for their Services, to be ascertained by Law, and paid out of the Treasury of the United States," the Constitution states.

However, some lawmakers such as New Jersey Sen. Andy Kim, New Jersey Rep. Josh Gottheimer and Florida Rep. Kat Cammack, say they will not take compensation during the shutdown. Trump also receives a salary as president, but the one-time real estate mogul has historically donated his pay.

Will there be layoffs during the government shutdown? OMB director huddles with GOP lawmakers

White House Press Secretary Karoline Leavitt told reporters that Office of Management and Budget Director Russ Vought would brief House Republican lawmakers Wednesday about federal government layoffs planned under the shutdown.

Trump has warned “vast” layoffs are possible. Leavitt confirmed a time frame that layoffs are “imminent” and could begin in as little as two days.

“We have to put a plan in place,” Leavitt told reporters.

Is the DMV impacted by the government shutdown?

No. It's business as usual at Department of Motor Vehicles offices across the country. Like the U.S. Postal Service, the agency's operations are not contingent on Congress passing a funding package.

Motor vehicle departments, which are state-run agencies, are largely funded through state budgets and supplemented by fees charged to drivers.

– Amaris Encinas

Vance takes center stage in shutdown fight

Vance made a surprise appearance at a White House press briefing on Wednesday, placing himself at the forefront of the administration's fight with Democrats over government spending.

In remarks to reporters, Vance repeatedly blasted Schumer, who he accused of acting in his own political interests, and threatened mass layoffs for federal workers if the shutdown continues.

"We need to reopen the government," Vance said. "Let's fix America's problems, let's work together to solve them, but let's reopen the government before have our negotiation about healthcare policy."

– Francesca Chambers

What government services will be impacted by shutdown?

Social Security checks will still be delivered. Medicare and Medicaid benefits also will still be paid, but many other aspects of the federal government will grind to a halt during the shutdown.

All federal agencies and services that officials do not deem "essential" must stop working during a shutdown.

Essential services include the U.S. Postal Service, Medicare and Social Security services and air-traffic control. "Nonessential" work, however, must pause, which affects thousands of federal employees and millions of Americans.

Do you have Medicare or Medicaid? Your doctor will see you, for now

If you have Medicare or Medicaid, you should be able to see your doctor without disruption. But if the shutdown drags on several weeks, problems could surface, experts said.

The Centers for Medicare & Medicaid Services will continue operations during the shutdown.

Doctors, hospitals and other health providers could see delays in Medicare and Medicaid payments during a longer-term shutdown, said Jonathan Burks, executive vice president of health and economic policy at the Bipartisan Policy Center.

Doctors might be reluctant to schedule appointments for new or existing patients if their payments are delayed, Burks said. Federal law requires hospitals to assess and stabilize anyone who seeks care at an emergency room.

– Ken Alltucker

Trump is no stranger to shutdowns

A shuttered government is familiar territory for Trump, whose first term saw three shutdowns, including a 35-day closure spanning the end of 2018 into early 2019. It remains the longest in U.S. history.

When Congress failed to pass new spending authority Tuesday, it prompted the 4th shutdown of the federal government during a Trump presidency.

When will the government reopen? Here's what would need to happen

The government will remain shut down until Congress can agree on federal funding allocations.

To reopen the government, Congress will need to pass funding appropriations. Trump will then have to sign the appropriations bill into law.

Lawmakers could also pass a temporary spending bill, known as a continuing resolution (or CR, for short), to buy more time for negotiations.

Stocks little changed on shutdown’s first day

U.S. stocks were mixed in the late morning in New York as investors digested the first day of the government shutdown and a weaker-than-expected report about hiring.

The Dow Jones Industrial Average added 66 points, about 0.1%, to trade near 46,464, while the broader S&P 500 index was down 2 points near 6,687. The tech-heavy Nasdaq Composite was off 25 points, or 0.1%, trading near 22,635. Gold, which investors snatch up during periods of uncertainty, was up $22 near $3,895.

Before the market opened, payroll processor ADP said that private employers had shed a net 32,000 jobs in September. Economists had expected a gain of 50,000 jobs. ADP’s report will likely be the only read on the state of hiring until the shutdown ends, and with the Federal Reserve set to meet during the last week of October, it takes on outsize importance.

The lackluster reading “makes the Fed more likely to cut rates a quarter percent at their next decision in late October,” said Bill Adams, chief economist for Dallas-based Comerica Bank, in an email.

How is the IRS impacted by the government shutdown?

The Internal Revenue Service will not immediately be impacted by the government shutdown. More than 74,000 IRS employees are expected to report to work for the first day days after the shutdown's start, per the IRS' government shutdown contingency plan.

The federal government agency will continue operating under the Inflation Reduction Act, which provides supplemental appropriations to the IRS through Sept. 30, 2031, according to the contingency plan. However, the plan does not outline the agency's next steps after Oct. 5.

– Greta Cross

AOC: ‘This is so not about me’

Progressive firebrand New York Rep. Alexandria Ocasio-Cortez said in an interview with MSNBC on Tuesday that Republicans who are speculating the government shutdown is her fault should negotiate with her on a deal directly. 

Her remarks come as some Republicans have argued that Schumer opposed a temporary short-term bill to fund the government because of pressure from progressive Democrats and a potential primary challenge from Ocasio-Cortez in 2028.  

Schumer received backlash in March after voting in favor of a Republican-crafted short-term funding bill. Ocasio-Cortez told reporters then that there was "a deep sense of outrage and betrayal" and said Senate Democrats must "correct course." Other House Democrats and New York politicos urged her to mount a primary challenge to him when he is next up for re-election in 2028.

But Ocasio-Cortez said just hours before the government shut down that, “This is so not about me in this moment.”

She added, “I saw some senators speculating about this, and I saw some Republican members of Congress saying, ‘Oh, well, if we have this shutdown, it's because of AOC.’ Well, if that's the case, my office is open and you are free to walk in and negotiate with me directly.”

Schumer shutdown becomes key phrase for congressional Republicans

Congressional Republicans adopted two key phrases at a Wednesday news conference to accuse Democrats of holding the American public “hostage” and blast what they called the “Schumer shutdown.”

Schumer of New York has become the face of the Democratic Party as he negotiates federal funding with Trump. Senate Majority Leader John Thune, R-South Dakota; Sen. John Barrasso, R-Wyoming; and Sen. Tom Cotton, R-Arkansas, each called it a “Schumer shutdown.”

“The reason the government is shut down this morning is because the Democrats decided they would rather hold our government hostage and issue a $1.5 trillion random note,” said Rep. Tom Emmer, R-Minnesota.

Schumer has highlighted that many people will lose health insurance if federal subsidies aren’t extended under Obamacare as the renewal period begins Nov. 1.

But House Speaker Mike Johnson, R-Louisiana, said subsidies could be debated in December before new insurance rates go into effect Jan. 1.

“That is not a decision that has to be made before the end of the year,” Johnson said. “Don’t buy it. They’re grasping at straws.”

Mike Johnson says shutdown ‘opportunity to downsize’ government

Johnson told Fox Business that he has spoken to Trump about using the shutdown to cut the federal government.

“The president and I have talked about this at great length,” Johnson said Wednesday. “While a shutdown is very damaging for real American people who depend on government services, it can provide an opportunity to downsize the scope and the scale of government, which is something that we’ve all always wanted to do.”

Trump is threatening mass layoffs of federal workers. Johnson said the shutdown is an opportunity to do things “we would not otherwise be able to do because we would never get Democrat votes for them.”

‘No way out’: Congressional Republicans push for short-term funding

Republican congressional leaders urged Democrats to support a short-term extension of funding through Nov. 21 and reopen the government while lawmakers continue to debate spending levels.

“There’s no way out,” Senate Majority Leader John Thune, R-South Dakota, said at a Wednesday news conference outside the Capitol. “Everybody’s asking the question how does this end.”

The House previously approved the short-term funding extension. Another Senate vote is expected about 11 a.m. on Wednesday. But a 55-45 vote on Tuesday fell short of the 60 votes needed to approve the bill.

“They have taken the American people hostage,” Thune said of Democrats. “This could all end today.”

Does the military still operate during a government shutdown?

Military operations are necessary to national security, so service members will continue to work during the shutdown, according to a Saturday contingency plan published by the Department of War.

However, military members won't get paid while working during the shutdown because their compensation is funded through annual personnel appropriations to the Department of Homeland Security and Department of War, according to the Library of Congress.

It's possible that Congress will act to ensure active duty members continue to get paid as they have in past shutdowns. For example, the Pay Our Military Act allowed military members to be paid during a government shutdown in 2013.

National Park site operations will vary during the government shutdown.

National Park operations will vary during the government shutdown.

In general parks will remain open and “park roads, lookouts, trails, and open-air memorials will generally remain accessible to visitors,” according to newly published contingency plans on the Department of Interior’s website.

Parks with accessible areas that collect fees under the Federal Lands Recreation Enhancement Act are to use balances from those fees to continue providing basic visitor services like restroom maintenance and trash collection.

However, the plan says the National Park Service will not operate nor offer visitor services in parks without accessible areas, though essential services like law enforcement and border safety will continue. Also facilities and areas that are typically locked or secured after business hours will largely remain so during the shutdown.

– Eve Chen

'There’s going to be some pain' Vance says shutdown could hurt.

Vance in a Wednesday appearance on CBS Mornings said Americans could be harmed by the shutdown’s impact on government services.

“There are critical, essential services that the people rely on that are going to suffer because of this,” Vance said, adding: “There’s going to be some pain.”

Vance also appeared on Fox News, where he criticized Democrats’ focus on including an extension of health care subsidies in any government funding bill, saying “you don’t shut down the government because you have a policy disagreement about a totally separate issue.”

Congressional Democratic leaders – Sen. Chuck Schumer of New York and Rep. Hakeem Jeffries of New York – issued a joint statement at 12:01 a.m. Wednesday saying Trump and Republicans shut down the government “because they do not want to protect the healthcare of the American people.”

Will a government shutdown impact my flight?

For the most part, no. Air passengers should still be able to continue with their flights during a partial government shutdown.

Those workers who screen at airport security checkpoints, give flight clearance, and verify at border control are deemed essential, so they are still required to work.

However, a group representing major U.S. airlines warned that a partial federal government shutdown could strain American aviation and slow flights, as air traffic controllers and security officers would be forced to work without pay and other functions would be halted.

Airline trade group Airlines for America, which represents United Airlines, Delta Air Lines, American Airlines, Southwest Airlines and others, warned that if funding lapses "the system may need to slow down, reducing efficiency" and impacting travelers.

– Kathleen Wong

About $18 billion in NYC infrastructure funds frozen amid shutdown

The Trump administration has frozen about $18 billion in infrastructure project funds to New York City amid the federal government shutdown. Federal officials on Wednesday alleged discrimination from a city program meant to help underrepresented groups obtain federal contracts.

The federal Department of Transportation said two of the city’s largest projects in decades — the 2nd Avenue subway expansion and the Hudson River rail tunnel — are on hold pending administrative review. An agency news release called the projects “arguably the largest infrastructure initiatives in the Western Hemisphere.”

In an X post, Russ Vought, the director of the federal Office of Management and Budget, said the hold is meant to “ensure funding is not flowing based on unconstitutional DEI principles.”

The Transportation Department cited the city’s Disadvantaged Business Enterprise program, an equity initiative meant to expand participation in federally assisted contracts. Projects, for now, can’t reimbursed, an agency news release said.

A spokesperson for Mayor Eric Adams didn’t immediately respond to requests for comment. Gov. Kathy Hochul, a New York Democrat, called the hold “political payback and an attack on New York and its residents.”

– Eduardo Cuevas

Smithsonian museums remaining open this week

The Smithsonian Institute’s museums, research centers, and the National Zoo remain open this week despite the government shutdown.

The organization posted on its website that it will use money from the last fiscal year’s budget to stay open at least through Monday, Oct. 6.

The Smithsonian has 17 museums and a zoo in the Washington area plus two museums in New York City.

What does the government shutdown mean for mortgage borrowers?

Americans who are hoping to close on a mortgage soon – whether for a purchase or a refinance – may experience some delays as government functions are curtailed. Here are a few things to know:

Most mortgages that will be assumed by Fannie Mae and Freddie Mac should be unaffected, industry participants say. However, if your Social Security number needs to be verified, you may encounter delays.

If your mortgage comes from a rural housing program like those from the U.S. Department of Agriculture, expect delays. As the National Association of Realtors explains in an online memo to members, “new direct and guaranteed home loans, and any scheduled direct‑loan closings will be postponed. Pending conditional commitments for guaranteed loans are still being reviewed.”

If your mortgage comes from the Department of Veterans Affairs, you should also expect delays. “Some VA staff and support functions may be reduced, which may slow down approvals, appraisals and certificate of eligibility requests,” NAR says.

If you are working with a housing counselor affiliated with the Department of Housing and Urban Development, that agency may need to scale back or halt their activities, NAR says.

Buyers in flood-prone areas like Florida and Louisiana might encounter delays because the National Flood Insurance Program will not be funded. Some lenders may allow the purchase to proceed anyway, but that can create problems if a storm happens before insurance can be written, said Jeff Lichtenstein, president and broker of Echo Fine Properties in south Florida.

“Uncertainty in the marketplace might have some buyers just wanting to back out,” Lichtenstein told USA TODAY in an email. “Nothing good ever comes out of these things.”

White House website features shutdown clock

Trump is doing everything he can to blame Democrats for the shutdown, including featuring a shutdown clock on the White House website.

The top of the website displays the amount of time since “Democrats have shutdown the government.” There’s also a link to a video with clips of Democrats criticizing past shutdowns.

The Trump administration has used other government channels to blast out highly partisan shutdown messages, including a banner on the Department of Housing and Urban Development website declaring the “radical left” is shutting down the government.

Democrats say blame for the shutdown lies with the GOP.

“Republicans own this shutdown,” the Democratic National Committee posted on social media early Wednesday.

Massive furloughs expected in federal government

About 750,000 federal employees ranging from workers at national parks to financial regulators could be furloughed each day under a shutdown, according to the nonpartisan Congressional Budget Office, withholding about $400 million in daily compensation.

Other workers in government services that are considered “essential,” such as the military and law enforcement, will continue to work but won’t be paid until a deal is reached.

Trump warns of government layoffs

Trump has also warned Democrats he may lay off federal workers under a shutdown. "We can do things during the shutdown that are irreversible, that are bad for them and irreversible by them ‒ cutting vast numbers of people out, cutting things they that they like, cutting programs that they like,” Trump said in the Oval Office, hours before the shutdown.

The president later said: “A lot of good can come down from shutdowns. We can get rid of a lot of things that we didn't want. They’d be Democrat things.”

The shutdown is the first since 2019, which came during Trump’s first term following Democratic objections over funding Trump’s border wall. It was also the longest shutdown in U.S. history at 35 days, costing the U.S. economy about $3 billion, according to the Congressional Budget Office.

Democrats hold out for health-care demands

Democrats have demanded the reversal of Medicaid cuts that Republicans passed this year and the extension of health care subsidies be included in a funding measure.

“He doesn't understand that if the government shuts down, people's healthcare premiums will go up,” Democratic Senate Leader Chuck Schumer of New York said of Trump from the Senate Floor on Tuesday.

Trump and Republicans have countered by accusing Democrats of wanting to provide health care for immigrants who are in the country illegally. “That’s what they’re insisting, and obviously, I have an obligation to not accept that,” Trump said. Democrats have called the president's claims a lie, noting that undocumented immigrants aren’t eligible for payments from Medicare, Medicaid, or the Affordable Care Act.