Parts of the US government officially shut down on Wednesday after President Donald Trump and Congress failed to agree on a new spending bill, forcing thousands of federal employees into furlough. The shutdown began after a stopgap funding measure expired on September 30, disrupting multiple services across government agencies.

While essential programs will continue, the impact is already being felt across departments. The Social Security Administration confirmed that retirement and disability payments for nearly 74 million Americans will remain unaffected, though about 12% of its workforce has been furloughed, halting non-critical operations such as marketing campaigns. Medicare and Medicaid services will also proceed uninterrupted.

The Supplemental Nutrition Assistance Program (SNAP) and the Women, Infants, and Children (WIC) program will continue, ensuring food assistance for low-income families. Meanwhile, the Internal Revenue Service (IRS) will operate at full staffing for the next five days but has not clarified the status of 75,000 employees if the shutdown drags on.

Key security and defense personnel will work without pay. The Pentagon said that over 2 million active-duty service members and National Guard troops will continue their duties. Similarly, 13,000 air traffic controllers and most TSA staff will remain on duty without compensation until the standoff ends.

The Justice Department confirmed immigration court operations will continue, with employees managing enforcement and coordination with local authorities staying on the job. However, critical economic data releases, including jobs and GDP reports, will be suspended, raising concerns among investors and policymakers.

Around 4,000 employees at the Federal Emergency Management Agency (FEMA) have also been placed on unpaid leave.

The shutdown adds uncertainty to US markets, as traders anticipate the Federal Reserve may cut rates again this year amid slowing growth.