Trump vs Democrats: What's the point of contention that triggered US government shutdown

As the clock struck midnight on 1 October, the US government shut down after Democrats and President Donald Trump failed to resolve a budget impasse, with Democrats demanding health care funding.

Each year, Congress drafts detailed spending bills for most US government agencies, but rarely completes them before the fiscal year begins on 1 October. The current stopgap bill expired on 30 September.

To prevent disruptions, lawmakers usually approve temporary funding measures while finalizing the legislation. This year, Democrats and Republicans did not reach an agreement, resulting in a government shutdown.

As Trump's Republicans control both the House of Representatives and the Senate, the Bill that they passed in July – called the “One Big Beautiful Bill” rolled back spending on green energy, making major cuts in Medicaid for low-income and disabled persons.

This year, Democrats insisted that any spending bill include provisions to keep the expanded Affordable Care Act health subsidies from expiring at year-end. Also Read | US government shutdown 2025: What it means for US and Indian stock market?

Republicans have indicated they are willing to extend the subsidies but prefer addressing the matter in a separate measure.

While Republicans do not need Democrats since they are in the minority, at least seven votes are needed from the Democrats for the passing of any spending Bill. Building on that, Democrats are advocating for the continuation of expanded healthcare subsidies for individuals purchasing insurance through the Affordable Care Act.

Democrats also want the funding bill to include rules stopping Trump from ignoring their ACA rules or holding back money.

Republicans say they are open to considering a fix for the expiring tax breaks, but say the issue should be handled separately, and it was unclear whether their "fix" would differ substantially from the Democrats'. Republicans have accused Democrats of trying to use the stopgap funding bill to open the gates for government healthcare subsidies for immigrants in the U.S. illegally.

Congressional Democrats argue that a group of people living in the United States is prohibited by law from receiving such help and that their legislation would not change that.

(With agency inputs)