Efforts to swiftly end the U.S. government shutdown collapsed on Wednesday (October 1, 2025) as Democrats in Congress rejected proposals to resolve an acrimonious funding stand-off with President Donald Trump and the White House threatened public sector jobs.

With the government out of money after Mr. Trump and lawmakers failed to agree on a deal to keep the lights on, federal departments have been closing since midnight, with the White House warning of “imminent” firings of public sector workers.

Senate Democrats — who are demanding extended health care subsidies for low income families — refused to help the majority Republicans approve a House-passed bill that would have reopened the government for several weeks while negotiations continue.

Around 7,50,000 federal employees are ex

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