The US federal government entered a partial shutdown at midnight on Wednesday after Congress failed to pass a spending bill before the start of the 2027 fiscal year. The Office of Management and Budget directed agencies to begin furloughing non-essential employees.

The fiscal year ends on September 30, requiring Congress to enact appropriations or a continuing resolution to keep agencies funded. Republican House leaders and Senate Democrats remained divided over spending levels and policy riders, with neither chamber reaching the 60 votes needed in the Senate.

The White House budget office issued guidance instructing departments to implement shutdown contingency plans. Hundreds of thousands of federal workers face furloughs, while essential personnel including active-duty military and air traffic controllers are required to work without immediate pay.

Senate Majority Leader and House Speaker traded blame for the impasse, each accusing the other party of holding funding hostage. President Donald Trump pressed lawmakers to accept his administration's spending priorities and warned of extended disruption if Democrats refused.

The Congressional Budget Office has warned that prolonged shutdowns reduce economic output and delay federal services, from national park operations to processing of small business loans.