Federal Shutdown Began Oct. 2; 750,000 Furloughed

A U.S. federal government shutdown began on October 2, 2025, after Congress failed to pass a continuing resolution, leading to roughly 750,000 federal employees being furloughed while essential personnel — including air-traffic controllers, TSA, Customs, law enforcement and military — remain on duty and may work without pay until funding is restored. Military personnel remain on duty but some non‑essential deployments and orders could be halted and pay for those orders delayed. Social Security and Medicare payments are largely protected and presidential and congressional salaries remain paid, but the Office of Management and Budget has warned layoffs could follow if the funding gap persists. The lapse of the National Flood Insurance Program and slowed FHA/VA loan processing are already delaying home sales and threatening regional housing markets, particularly in the D.C. area. Many national parks and monuments are operating with skeleton staffs or closed visitor centers, and agencies such as EPA, Education and Commerce face high furlough rates while Homeland Security and the VA are less affected. Local economies, federal contractors and community services face interrupted permits, loan processing and potential layoffs as unions and advisers urge furloughed workers to budget, preserve HR records and contact lenders and utilities.