U.S. Government Shuts Down Amid ACA Funding Standoff

By: Minka Koskinen

October 5, 2025

At midnight on Wednesday, Oct. 1, the government shut down. The cause of the shutdown was a congressional deadlock, as an agreement on funding could not be reached.

Republicans want to defund the Affordable Care Act, which is set to expire at the end of 2025. They have stated they would support a temporary funding measure to allow the government to continue operating. Democrats have pledged they will not vote yes on any short-term resolution unless Republicans agree to extend tax credits that help provide coverage through the ACA marketplace.

What is the impact if these tax credits aren’t extended? Millions of Americans who utilize Medicare could face a doubling of insurance premiums. In addition, the cost of medications such as insulin could see significant price increases.

Prior to the shutdown, President Donald Trump stated, “There could be firings — and that’s their [Democrats’] fault. And it could also be other things. We could cut projects that they [Democrats] wanted, favorite projects, and they’d be permanently cut.”

Those with travel plans may also feel the effects of the shutdown, as TSA agents and air traffic controllers will be working without pay. They are considered essential personnel.

National parks will remain partially open. However, visitor centers and other sites requiring more staffing will be closed. Sixty-four percent of the National Park Service workforce is expected to be furloughed.

In recent weeks, Gov. Tim Walz has worked alongside budget officials to prepare for the shutdown. Officials have stated that Minnesota will not see significant impacts to state-run programs, but if the shutdown continues, it could affect thousands of Minnesotans who rely on those services.

According to an article by Politico, Russ Vought, director of the Office of Management and Budget, stated Wednesday that $8 billion in funding will be cut from “the Left’s climate agenda.” The cut specifically targets 16 states, including Minnesota, that did not vote in favor of Trump. Gov. Walz responded by telling reporters, “If we need to challenge in court, we’ll challenge in court. But this idea that you’ve got to go and kiss the ring, or you’ve got to go and give some type of award to get basic services that he swore an oath to defend, that is outrageous.”

Students will also be affected. Student loan payments will not be paused during the shutdown, and borrowers are still expected to make payments as it continues.

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