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October 1, 2025

About 750,000 federal workers furloughed as Senate votes fail amid ACA subsidy fight

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Republicans control all branches but blame Democrats for shutdown

The federal government shut down at 12:01 a.m. EDT on Oct. 1, 2025, after the Senate failed to invoke cloture on competing stopgap funding measures. The Senate needed 60 votes to end debate but repeatedly fell short with tallies like 55-45 and 47-53.

Approximately 750,000 federal employees were furloughed without pay, while 700,000+ essential workers were required to continue working without immediate paychecks. This affected agencies across the executive branch.

The shutdown centered on a dispute over extending enhanced Affordable Care Act premium tax credits set to expire Dec. 31, 2025. Democrats demanded immediate extension; Republicans wanted to negotiate separately.

President Donald TrumpDonald Trump publicly urged Republican senators to hold firm in the dispute and met with GOP leadership to coordinate strategy. Trump used the shutdown as leverage for policy concessions.

OMB Director Russell VoughtRussell Vought issued contingency guidance on Sep. 30, 2025, directing agencies to prepare reduction-in-force and shutdown staffing plans. This guidance went beyond standard shutdown procedures.

Labor unions AFGE and AFSCME filed suit on Sep. 30, 2025, in U.S. District Court for the Northern District of California, challenging OMB and OPM guidance that directed agencies to consider RIFs during the funding lapse.

The 2018-2019 government shutdown lasted 35 days and cost the economy $11 billion according to Congressional Budget Office estimates. That shutdown permanently reduced GDP by $3 billion as economic activity was lost forever.

Federal contractors faced $2 billion in losses during the 2018-2019 shutdown and were not guaranteed back pay, unlike federal employees who receive back pay under the Government Employee Fair Treatment Act of 2019.

💵Tax & Budget🏛️Government🏢Legislative Process

Test Your Knowledge

10
Q1

OMB Director Russell Vought told House Republicans that mass layoffs would begin within how many days of the shutdown starting?

Q2

Which federal workers are classified as "essential" and must report to work during shutdowns without immediate pay?

Q3

What's the primary Democratic demand that led to the shutdown stalemate?

Q4

Approximately how many federal workers were furloughed or working without pay when the government shut down October 1, 2025?

Q5

Trump posted on Truth Social that Democrats gave him an "unprecedented opportunity" to permanently cut federal programs during the shutdown.

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People, bills, and sources

What you can do

1

civic action

Check your agency pay schedule and eligibility for state unemployment

Furloughed employees may qualify for state unemployment insurance while furloughed. Agencies are the authoritative source for furlough status and pay-cycle impact.

info@

Phone Call Script: Office of Personnel Management - Furlough and Unemployment Benefits

Opening: Hello, I'm a furloughed federal employee calling to understand my pay schedule and eligibility for state unemployment benefits during the shutdown.

Key information to have ready:

  • Your agency name
  • Your employee ID or Social Security Number
  • Your furlough status and dates

Key points to discuss:

  • The federal government shut down at 12:01 a.m. EDT on Oct. 1, 2025
  • Roughly 750,000 federal employees were furloughed
  • About 700,000+ essential workers are working without immediate pay
  • Furloughed employees may qualify for state unemployment insurance while furloughed

Questions to ask:

  1. What is my furlough status, and when did it begin?
  2. When will I receive my last paycheck before the shutdown?
  3. Am I eligible for state unemployment benefits while furloughed?
  4. How do I apply for unemployment benefits in my state?
  5. Will I receive back pay when the shutdown ends?
  6. What documentation do I need to apply for unemployment?
  7. How does the Government Employee Fair Treatment Act of 2019 affect my situation?

Why this matters: Furloughed federal employees need income to pay bills and support their families. Understanding your options for unemployment benefits and back pay helps you plan financially during the shutdown.

Specific request: I'm requesting information about my furlough status, pay schedule, eligibility for state unemployment benefits, and the process for applying for those benefits.

Contact: Office of Personnel Management: 202-606-1800 Email: info@opm.gov Website: https://www.opm.gov/

Thank you for your assistance.

2

understanding

Track proposed subsidy changes before open enrollment

Consumers eligible for ACA marketplace subsidies should follow Congressional action through Nov. and Dec. 2025, because subsidy law changes can alter 2026 premiums.

support@

How to Track ACA Subsidy Changes During Shutdown

Background: The federal government shut down on Oct. 1, 2025, after the Senate failed cloture votes on competing stopgap funding measures. The shutdown was tied to an ACA subsidy fight. Consumers eligible for ACA marketplace subsidies should follow Congressional action through Nov. and Dec. 2025, because subsidy law changes can alter 2026 premiums.

Key information:

  • Enhanced premium tax credits may expire on Dec. 31, 2025
  • If enhanced credits expire, subsidized enrollees could see out-of-pocket premium increases of more than 75% on average
  • Open enrollment for 2026 coverage typically runs from Nov. 1 to Jan. 15
  • Congressional action during the shutdown and after could affect subsidy availability

How to track changes:

  1. Monitor Congressional action:

    • Track bills related to ACA subsidies and premium tax credits
    • Follow Senate and House votes on spending bills that may include subsidy provisions
    • Watch for reconciliation bills or other legislation affecting subsidies

  2. Check Health Insurance Marketplace:

    • Call: 1-800-318-2596
    • Website: https://www.healthcare.gov/
    • Sign up for email updates about subsidy changes

  3. Contact your state insurance department:

    • Find your state office: https://www.naic.org/state_web_map.htm
    • Ask about state-level programs that might offset subsidy losses

  4. Follow news and advocacy groups:

    • Monitor healthcare policy news
    • Follow advocacy groups tracking ACA subsidy legislation

What to watch for:

  • Extension of enhanced premium tax credits beyond Dec. 31, 2025
  • Changes to subsidy eligibility thresholds
  • New legislation affecting marketplace subsidies
  • Final 2026 premium rates (typically released in Oct.)

Why this matters: Subsidy changes can significantly affect your 2026 health insurance costs. Tracking Congressional action helps you understand your options and prepare for potential premium increases.