President Trump Threatens New Government Shutdown—Here’s What Could Close and How It Impacts You

Dateline: Washington — October 16, 2025 A record-length federal shutdown entered its 16th day Thursday after overnight negotiations between President Trump and congressional leaders collapsed, leaving hundreds of thousands of federal employees without pay and vital programs hanging in the balance. The sticking point: whether a stop-gap spending bill should restore Affordable Care Act premium subsidies that expired on October 1. Senate Democrats insist the credits must be renewed, while House Republicans—backed by the White House—refuse, calling them “Democrat giveaways.” Key developments • Ninth failed Senate vote: A GOP-authored continuing‐resolution that omitted ACA funding fell eight votes short of the 60 needed for cloture Wednesday night. Majority Leader Mitch McConnell immediately moved to reconsider, but no new vote is scheduled. • Mass layoffs paused—for now: A federal judge issued a temporary restraining order halting reduction-in-force (RIF) notices the administration began sending to 13,000 workers last week, pending a union lawsuit alleging illegal retaliation. • Military pay patch: The Pentagon will tap roughly $8 billion in unused R&D funds to cover one pay cycle for 1.3 million active-duty troops, averting missed checks that were due today. Defense officials warn the maneuver is “one-time only.” • National parks shuttered: Iconic sites such as Muir Woods and sections of Yosemite remain closed or partially open without basic services, prompting safety and sanitation concerns. • USDA nutrition cliff: WIC funding is projected to run out within days, while states have been told to withhold loading November SNAP benefits “until further notice.” • Air travel strain: A spike in sick leave at two East Coast control centers caused cascading flight delays earlier this week; industry groups warn the system is operating “one storm away” from gridlock. Trump’s shutdown strategy From the Rose Garden, President Trump reiterated that he is “prepared to keep government closed as long as it takes” to shrink what he calls “bloated, partisan agencies.” The White House confirmed it is mapping additional layoffs and program eliminations that could be executed without new appropriations—an aggressive interpretation that legal scholars say will surely face court challenges. Economic ripple effects The Congressional Budget Office estimates the shutdown is shaving $350 million a day from GDP and could cost the economy more than $12 billion if it stretches into November. Small businesses near national parks report revenue drops of 60-80 percent, and federal contract workers—who historically do not receive back pay—have begun applying for unemployment and food aid in large numbers. What’s next on Capitol Hill • Senate Democrats plan to force a vote Friday on a “clean” CR that includes ACA subsidies and guarantees back pay for all federal workers and contractors. • House conservatives are preparing a competing measure that would fund the military and homeland security through January while leaving most civilian agencies closed. • Moderates in both chambers are floating a 10-day “cool-off” extension tied to a bipartisan commission on health-care subsidies, but leadership has not endorsed the idea. Bottom line Until one side blinks on health-care funding—or agrees to separate it from the broader budget—federal workers, military families, and millions of Americans who rely on government services will continue to feel the widening effects of the Trump shutdown.