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2025 U.S. Government Shutdown: What Happened and How It’s Affecting Working People in Tennessee
- Mason West
- Oct 13
- 3 min read
The federal government shut down on October 1, 2025, after Congress failed to pass new funding legislation to keep agencies open.
The shutdown affects millions of Americans—particularly working-class Tennesseans who depend on federal jobs and programs.
Why the Government Shut Down
Lawmakers were unable to agree on a continuing resolution (CR), a short-term bill that would have funded the government while Congress negotiated a full-year budget for fiscal year 2026.
According to the White House Press Secretary Karoline Leavitt, Democrats in the Senate rejected a “clean” House-passed CR that would have extended existing funding until November 21.Leavitt said,
“Democrats in Congress have officially shut down the United States government. House Republicans passed a non-partisan, clean piece of legislation to extend current government funding… but nearly every single Democrat senator voted against this bill.”
She described the legislation as nearly identical to one that Democrats had supported six months earlier and claimed the dispute centered on health-care policy for undocumented immigrants:
“The Democrats shut down the government because President Trump and the Republicans will not force American taxpayers to pay for free health care for illegal aliens.”
Vice President J.D. Vance made the same argument, saying the “Schumer-AOC wing” of the Democratic Party insisted that any funding bill include billions of dollars for health-care coverage for people in the country illegally, while Republicans refused.
“The reason your government is shut down at this very minute,” Vance said, “is because… the Democratic Party shut down the government because they said to us, ‘We will open the government but only if you give billions of dollars of funding for health care for illegal aliens.’”
Both Leavitt and Vance said Republicans support reopening the government immediately through the House-passed measure, which they describe as “clean”—meaning it contains no policy riders.
Leavitt quoted Teamsters Union President Sean O’Brien, who warned Congress:
“American workers are not bargaining chips. Senators need to stop screwing around and pass the House-passed clean short-term funding bill.”
She added that the U.S. Chamber of Commerce urged the Senate to approve the bill, calling the Government shutdown “harmful to the economy, the American people, and our national security.”
How the Votes Played Out to Cause the Government Shutdown
House Vote (Sept 19, 2025): Passed 217–212
Senate Votes: Failed 44–48 on a procedural motion and 52–42 on the final attempt
With no agreement between the chambers, the government’s spending authority expired at midnight on September 30.
Effects on Tennessee’s Working Communities
1. Federal Employees and Contractors
Roughly 32,000 Tennesseans employed by or contracted with federal agencies are furloughed or working without pay—including postal staff, TSA officers, and park rangers.
2. Program Disruptions
Leavitt told reporters that several programs are affected:
“1.3 million active-duty troops will work now without pay… critical food assistance for low-income women, infants, and children will lapse… nearly 50,000 Coast Guard members and 13,000 air-traffic controllers will work without pay.”
She said the administration views these outcomes as “unfair” but unavoidable until Congress restores funding.
3. Unemployment Assistance
Federal and state employees impacted by the shutdown can apply for unemployment benefits, though payments are partial and temporary.
4. Local Economies
When paychecks stop, spending in communities from Oak Ridge to Nashville declines. Small businesses that depend on federal contracts or tourism tied to federal parks feel the slowdown first.
5. Household Stress
Working families already strained by inflation face additional uncertainty over bills, groceries, and childcare.
What Happens Next
Negotiations in Congress continue. Republican leaders and the administration say they will support reopening the government only through the clean funding bill passed by the House. Democratic senators have not yet agreed to that approach.
As Leavitt concluded,
“The American people want the government reopened… Democrats need to stop sabotaging our country and holding the American people hostage.”
Vice President Vance added,
“Let’s fix America’s problems. Let’s work together to solve them—but let’s reopen the government before we have our negotiation about health-care policy. That’s what the American people demand.”
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