Explainer: What's Trump's strategy behind the US shutdown?
Democrats say they have heard “radio silence” from the White House since an Oval Office meeting failed. House Speaker Mike Johnson says Republicans have “nothing to negotiate” beyond their existing bill
The US government partially shut down on 1 October after lawmakers failed to pass a funding bill.
Here's what you need to know.
Why did the government shut down?
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The US congress missed the deadline to pass a funding measure. Democrats tied approval of the bill to extending subsidies under the Affordable Care Act (ACA), arguing that millions of Americans could face higher insurance premiums without them. Republicans and President Donald Trump rejected the demand, saying healthcare reforms should be debated later.
What is the impact?
- Around 750,000 federal workers are furloughed. Military personnel and essential staff are working without pay.
- National parks, the Statue of Liberty and many federal offices are closed. Some Smithsonian museums remain open temporarily.
- Food aid programs like WIC could run short if the shutdown extends beyond a week.
- Key economic data, including the jobs report, may be delayed.
What is Trump's strategy?
Trump has turned the shutdown into a pressure campaign:
- Freezing billions in infrastructure projects in Democratic-led states such as New York and Illinois.
- Threatening federal job cuts, beyond normal furloughs.
- Using social media and public appearances to mock Democratic leaders, which Republicans say is meant to highlight their stance but Democrats call unserious.
Are negotiations happening?
Talks have stalled. Democrats say they have heard "radio silence" from the White House since an Oval Office meeting failed. House Speaker Mike Johnson says Republicans have "nothing to negotiate" beyond their existing bill.
What's next?
The US Senate is adjourned until next week, making a quick resolution unlikely. Both sides are holding firm, but pressure may rise as workers miss paychecks and public frustration builds.
Why does it matter globally?
Shutdowns in Washington are closely watched by international investors and governments. A prolonged lapse could delay US economic data releases relied on by markets worldwide, add volatility to the dollar and Treasury markets, and raise concerns about US political stability. Allies also track shutdowns as they can disrupt cooperation on defense, trade and diplomacy if funding interruptions affect overseas programs.
