What is a US government shutdown?

The US is on the verge of another government shutdown after the lower house of Congress failed to pass a spending bill to keep federal agencies open.

The funding is expected to expire at midnight Friday unless Republicans and Democrats can agree on a way forward.

Here’s a breakdown of how we got here and what that means for Americans — and for Donald Trump.

Many federal agencies rely on annual funding approved by Congress.

Each year, these agencies submit their proposals, which must be passed by Congress and the President must sign the budget legislation for the next fiscal year.

If no agreement is reached, all non-essential, discretionary functions of the U.S. government will cease.

In September, both parties agreed on a bill that would maintain state funding until December 20.

This week, three days before lawmakers were set to leave for the holidays, House Speaker Republican Mike Johnson released a bill extending funding through March.

It was agreed to with Democratic leadership but included some measures, such as a pay raise for lawmakers, that left some Republicans unhappy.

Tech billionaire Elon Musk, a Trump ally, expressed opposition to it, and then the president-elect signaled he wanted his party to abolish it, which it did.

A second, slimmed-down bill reached the House floor on Thursday evening, but did not receive enough votes to pass.

If no agreement is reached by midnight, the US will experience its first shutdown since the beginning of 2019.

Essential workers will continue to work as usual, some without pay, while government employees deemed non-essential will be placed on temporary unpaid leave.

Border protection, hospital medical care, law enforcement and air traffic control remain in place.

But services such as the food assistance program, government-funded preschools, student loan forgiveness and food inspections, and national parks are being limited or closed.

While Social Security and Medicare checks are being mailed, benefit verification and card issuance will stop.

There could also be travel delays if the standoff drags on.

“An extended closure could result in longer wait times at airports,” said Transportation Security Administration spokesman Carter Langston.

The Tesla boss has been tasked with identifying spending cuts by co-leading the proposed Department of Government Efficiency (DOGE).

It’s not an official government agency, but he has promised to raise $2 trillion in savings.

On Wednesday, he made dozens of posts on X, the platform he owns, to express his displeasure with Mike Johnson’s bill.

He amplified some false statements about the content of the bill, calling it criminal and outrageous.

After Musk rallied opposition, Trump and JD Vance, the new vice president, delivered the final blow to Johnson’s deal that evening.

In a joint statement, they said they wanted simplified legislation without the Democratic-backed provisions that Johnson included.

They also called on Congress to raise or eliminate the debt ceiling, which determines how much the government can borrow to pay its bills.

Johnson has promised to find a solution on Friday, so there will be heated arguments on Capitol Hill over time.

But to get the necessary support in the House of Representatives, he needs Democratic votes.

Democrats say they will only support the original bill, which Trump and Musk rejected.

If no agreement is reached, U.S. federal authorities will close at midnight.

Pretty common. President Ronald Reagan oversaw eight closures during his time in office – although all were relatively brief.

And there were three when Donald Trump was president, including the longest in history at 36 days, which ended in January 2019.

This happened because of disagreements over funding for a wall on the border with Mexico.

The Congressional Budget Office (CBO) According to estimates, this reduced economic output by about $11 billion, including $3 billion that it never matched again.

Budget freezes occur almost exclusively in US politics.

In the U.S. system, the various branches of government must agree on spending plans before they can be enacted into law.

In most countries, budget votes become a vote of confidence in the government itself. However, since the United States has co-equal and often divided branches of government, this is not the case.

This is a law, also known as the debt limit, that limits the total amount the government can borrow to pay its bills.

This includes payments for federal employees, the military, Social Security and Medicare, as well as interest on the national debt and tax refunds.

From time to time, the U.S. Congress votes to raise or suspend the cap to allow more borrowing.

Trump’s inclusion of that condition in the deal was an unexpected demand that has made it harder for right-wing Republicans, who often rail against increased government spending, to support the bill.

The debt ceiling must be increased in the coming months, regardless of the promised increases in efficiency.

But some analysts believe that by demanding this now, Trump is signaling the cost of his proposed tax cuts and tighter border restrictions will test the caps. And he prefers that the fight for the increase take place before he takes office.

Democrats normally support a non-binding debt ceiling increase, but they are currently in no mood to help Republicans.

The risk for Trump is that the mini-rebellion will tear apart the cloak of invincibility he has worn since the election.

And it raises questions about how smoothly his party can deliver on his campaign promises that require legislation.