(TJV NEWS) The U.S. federal government officially entered shutdown at 12:01 a.m. Wednesday, marking the first funding lapse since 2019.

The shutdown immediately furloughed some 750,000 federal employees while designating “essential” workers — including TSA officers, food inspectors, and active-duty service members — to continue working without pay. Military families could see missed salaries within weeks if the standoff persists, raising stakes well beyond Washington.

How long will this shutdown drag on? Zero Hedge noted that betting market Polymarket shows most participants expecting it to last two weeks or longer.

Shutdowns Rarely Succeed

History is not on lawmakers’ side. The 2013 Republican attempt to dismantle Obamacare collapsed. The Democrats’ 2018 effort tied to DACA fizzled. Even the record-long 2018–2019 shutdown during President Trump’s first term ended with frustration, missed paychecks, and no structural gains.

This time, the breakdown came after both stopgap bills failed in the Senate. Republicans pushed a “clean” continuing resolution to extend current funding into November, while Democrats demanded extensions of enhanced Affordable Care Act subsidies and protection of Medicaid benefits, including those available to undocumented immigrants. Both sides walked away empty-handed, leaving the government shuttered.

Democrats and Republicans Trade Accusations

According to Zero Hedge, Senate Democrats rejected the GOP’s temporary measure and instead demanded health-care guarantees. “They’re in charge. They have to convene a negotiation. They haven’t done that,” Sen. Chris Murphy (D-CT) said.

Rep. James Walkinshaw (D-VA) added: “Trump has to actually be willing to negotiate and make a deal. He wrote a book about making deals. He hasn’t done that as president, but this is his opportunity.”

Republicans countered that Democrats were using the shutdown as leverage. “We’re not going to discuss and negotiate it while they’re holding the hostage of the federal government,” Senate Majority Leader John Thune (R-SD) told CNBC.

Trump Signals He’ll Use Shutdown for Leverage

Meanwhile, President Trump and OMB Director Russ Vought are openly considering the shutdown as a way to force long-term government cuts and reforms that would never otherwise pass Congress. “A lot of good can come from shutdowns,” Trump remarked Tuesday.

Zero Hedge pointed out that Democrats see such rhetoric as intimidation. Yet defections within their own ranks are emerging: Senators Catherine Cortez Masto, Angus King, and John Fetterman have already broken with Democratic leadership to back the GOP’s temporary funding measure.

Majority Leader Chuck Schumer is still holding most of his caucus together but faces rising pressure as centrists peel away. Thune is betting that prolonged pain could bring at least eight Democratic defections, enough to reach 60 votes.

Shutdown Fallout Across the Federal Government

The shutdown has sweeping consequences across agencies:

• Federal workers: Hundreds of thousands furloughed; contractors unlikely to be repaid.

• National parks/travel: Sites technically open but unstaffed; TSA and FAA remain but unpaid.

• Defense/military: Over a million troops working without pay; elective care postponed; new contracts frozen.

• Health services: HHS, CDC, and NIH furlough staff; FDA slows inspections. Medicare/Medicaid continue.

• Veterans Affairs: Benefits continue, but regional offices and counseling shut down.

• Energy/environment: EPA enforcement slowed; mining/drilling permits continue.

• Food safety: USDA meat inspectors remain but unpaid; FDA inspections limited.

• Financial regulation: SEC and CFTC skeleton crews only.

• Cybersecurity: DHS’s CISA furloughs two-thirds of staff, keeping only critical systems online.

As Zero Hedge detailed, the impacts stretch from delayed permits to frozen consumer protection programs, leaving millions of Americans directly affected.

The Public’s Patience Wears Thin

National parks closed, Medicare service delays, phones unanswered at federal agencies, and even the Bureau of Labor Statistics withholding its jobs report have already sparked public frustration. Historically, such backlash has been a key force ending shutdowns, often more effective than negotiations themselves.

What Comes Next?

Federal paydays loom in mid-October, including an Oct. 15 deadline for military pay. Pentagon officials have floated the possibility of redirecting funds from the so-called “One Big Beautiful Bill Act” to cover salaries — a move that would inflame Democratic opposition.

According to Punchbowl News, the most realistic path out involves Trump striking a deal. For now, however, the White House shows little appetite for compromise, and Zero Hedge concludes that the country is staring at a prolonged standoff, with families, federal workers, and markets caught in the crossfire.