US Government Shuts Down as Congress Fails to Pass Budget

The US government has shut down for the first time in nearly seven years after Republicans and Democrats failed to reach a budget deal. The deadlock threatens hundreds of thousands of jobs and billions of dollars in lost economic output.

Source Financial Times

Federal agencies are preparing for sweeping furloughs that could affect about 750,000 workers. Essential services, including the military and federal law enforcement, will continue operating, but largely without pay.

The dispute centers on disagreements over funding for Medicaid and health insurance subsidies. Democrats insisted these must be included in the budget, while Republicans pushed for a stop-gap measure without additional spending.