The United States has entered a government shutdown after President Donald Trump and Congress failed to agree a funding deal before the midnight deadline. About 750,000 federal workers are expected to be furloughed, with some employees possibly laid off by the administration. Numerous government offices will close, and some services may be halted for an extended period. The administration has signalled a hard line on immigration, while education and environmental work are likely to be affected. Economists warn the disruption could have nationwide repercussions.

Lawmakers remain divided, with Democrats pushing for funding to keep key subsidies in place for health care under the Affordable Care Act and for other programmes. Republicans have blocked talks for now, urging a broader spending approach. After a White House meeting, the president circulated a video criticising the Democratic leaders; the clip drew widespread criticism for its tone. There is currently no clear plan to avert a rapid resolution to the funding lapse.

Preparations are underway across the federal government. The White House Office of Management and Budget has directed agencies to plan for furloughs and, in some cases, mass staff reductions. The administration’s aim to shrink the size of the federal government is a central theme. Economists warn the shutdown could deliver an economic jolt within days, with Friday’s monthly jobs report potentially affected. Financial markets have generally moved on from past shutdowns, but analysts say this case may differ due to the absence of broad negotiations, with Goldman Sachs noting there are few close parallels to this week’s scenario.