New Fiscal Year, No Federal Budget: Breaking Down the Shutdown

By: Michelle Warren Published on: 01/10/2025

As we wake up this morning, October 1st, we celebrate the new fiscal year but unfortunately the Government is shut down. Since the federal fiscal budget was not passed by end of day yesterday and the Constitution requires Congress to approve spending, without a budget or a continuing resolution many federal government activities legally cannot continue. So, what does that mean? In short, it does not mean the entire government stops, but it does mean non-essential services halt, federal employees and contractors face pay delays, and many day-to-day functions of government pause until funding is restored.