Leaders Race to Agree on Money Plan

The federal government's budget year ends on September 30. Lawmakers must agree on new spending bills before that date. If they do not, parts of the government could shut down again. This year already saw two shutdowns.

One happened in late January, and a longer one lasted from mid-February to late April. That second shutdown lasted 76 days, affecting many federal workers and services. Now Congress faces pressure to avoid a third shutdown this fall. A government shutdown can delay paychecks and pause many public services.

The federal government's fiscal year ends on September 30, when all annual spending bills expire. Congress must pass new appropriations, or funding legislation, before that deadline to keep agencies running. Lawmakers have struggled to reach agreement on spending levels throughout the year.

The country has already experienced two government shutdowns in 2026. The first lasted from January 31 to February 3, a brief lapse in funding. The second shutdown was far longer, stretching from mid-February to the end of April, a total of 76 days. That extended shutdown delayed pay for federal workers and disrupted some public services nationwide.

A government shutdown happens when Congress fails to approve funding for federal agencies by the deadline. During a shutdown, many non-essential government offices close. Hundreds of thousands of federal employees may be furloughed or forced to work without pay. Essential services like the military and air traffic control usually continue operating.

With the September 30 deadline approaching, lawmakers face renewed pressure to avoid a third shutdown this year. Negotiators are working to bridge disagreements over spending priorities before time runs out. Analysts warn that a third shutdown so close to the midterm elections could carry significant political risk for both parties. Families who rely on federal benefits and services are watching the budget talks closely.