With just hours left before the midnight deadline, the United States is staring at a government shutdown that could ripple across federal agencies, services, and the broader economy. A shutdown occurs when Congress fails to pass the annual spending bills needed to keep the government running.

This year’s crisis is fuelled by a fierce clash between President Donald Trump and Democrats over healthcare subsidies and federal spending priorities. Vice President JD Vance admitted the grim outlook, saying, “I think we’re headed to a shutdown.” If no agreement is reached, millions of Americans will feel the impact, from federal employees missing paychecks to disrupted public services and delayed economic activity. Here is what to know about the looming shutdown.

Why is a shutdown possible?

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