Shutdown Began Oct. 1 Over ACA Credit Dispute

The U.S. government shut down on Oct. 1 after lawmakers failed to agree on a stopgap funding bill, with the dispute centered on whether to extend Affordable Care Act premium tax credits. House Speaker Mike Johnson has kept the House largely out of session through Oct. 14 and pushed a seven-week House bill that lacks Senate support, while Senate leaders have continued unsuccessful procedural votes and President Trump has largely stayed aloof from direct negotiations. Federal agencies were told to prepare for layoffs and many workers were furloughed; the Congressional Budget Office estimates roughly $1.2 billion in backpay for about 750,000 employees after three business days. Budget experts say shutdowns are wasteful, create added costs through contingency planning and required backpay, and undermine basic budgeting and governance. Polls and media coverage show public backlash and assign greater blame to Trump and congressional Republicans, and decentralized prediction markets indicate roughly three-quarters of bettors expect the shutdown to last past Oct. 15.