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October 2, 2025 13 mins

Earlier this week, the U.S. government shut down after Congress failed to pass funding legislation. It's the 21st shutdown since 1977, and it has triggered the indefinite pause of most federal services, putting tens of thousands of federal employees out of work.

Today we're breaking down what a shutdown actually means, how an entire government just stops, and why this one might be different from past shutdowns.

Hosts: Sam Koslowski and Billi FitzSimons
Producer: Orla Maher

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Transcript

Episode Transcript

Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Already, and this is the Daily This is the Daily OS. Oh,
now it makes sense.

Speaker 2 (00:14):
Good morning, and welcome to the Daily OS. It's Friday,
the third of October.

Speaker 1 (00:18):
I'm Sam Kazowski, I'm Billy fit Simon's wait before we
get into the deep dive. Yeah, it's a big day,
third of October.

Speaker 2 (00:24):
Third of October. It's two days before my mum's sixtieth birthday.

Speaker 1 (00:27):
And Taylor Swift is also dropping an album today. And
it's the Mean Girl's Meme Day, which.

Speaker 2 (00:33):
Means that most of tda's office will not do any
work today.

Speaker 1 (00:36):
No, wait, do you know what I'm saying when I
say the Mean Girl's Meme.

Speaker 2 (00:39):
Day that it's a date mentioned in the diary. And yeah, girls,
pretty much, I'm up with it.

Speaker 1 (00:45):
Big day, big day for the girls.

Speaker 2 (00:47):
Big day. And I'm sorry to kind of change the
tone of this conversation, but we're talking about US politics.
It's a big day for US politics, not as exciting
as a new Taylor Swift album. And that's because the
US government is shut down, and it's shut down Congress
failed to pass funding legislation. It's the twenty first shutdown
since nineteen seventy seven, and it has triggered the indefinite

(01:08):
pause of most federal services, putting tens of thousands of
federal employees out of work. On today's podcast, we're not
going to talk about the new Taylor Swift album. Instead,
we're going to break down what a shutdown actually means,
how an entire government can just stop, and why this
one might be different from past shutdowns. Before we jump
into all of that, here's a message from our sponsor.

Speaker 1 (01:32):
Sam. When I first saw this story, my first thought
was not again, because I feel like this happens every
single year. But then I just realized that there's kind
of talk about it happening, or there's a threat of
it happening exactly, but this time it's actually come to fruition.
We're here, we are here. My understanding is that it
all centers around the budget. Do you want to explain

(01:53):
exactly what this process is?

Speaker 2 (01:55):
Sure, So, the US government operates on a fiscal year
that runs from the first of October to the thirtieth
of September the following year, and towards the end of
each fiscal year, Congress needs to pass legislation to fund
federal operations for the next year. So a tick of
approval on the money that federal operations such as the military,
but also the National Park Service or a lot of

(02:18):
the health authorities in the country need to function. And
all of this starts in February, and that's when the
President usually proposes the budget and then he sends it
to Congress to review it. Just like in Australia, the
budget is a political reflection of what the priorities are
of that government or the president and almost always the

(02:38):
two sides, so the Republicans and the Democrats, they're going
to disagree on some measures and that's when they enter
a period of negotiation. And that period between February and September,
so you know, a good chunk fifty percent of the
time spent is on making sure the next year's budget
is approved. But if they can't reach an agreement by
the thirtieth of September, they've got two options really ahead

(03:00):
of them. They can either pass what's called a continuing
resolution or a CR. It's basically a band aid. It's
basically saying let's give enough funding for like thirty or
sixty days so that we can keep negotiating. Or they
can shut the government down.

Speaker 1 (03:15):
Right and so this time, they shut the government down
because they couldn't agree exactly.

Speaker 2 (03:21):
They couldn't not only could they not agree on the
federal budget, they couldn't agree on the terms of that
continuing resolution either, right, And what happens then is the
government shuts down literally at midnight on the first of October.
They don't have money that's been approved by Congress to
operate and they have to see non essential operations. That's
a shutdown. And that's where we are right now.

Speaker 1 (03:43):
You've mentioned Congress a few times. In Australia, we don't
have Congress, So do you want to just explain exactly
what that is, because it's critical to understanding how this
has happened.

Speaker 2 (03:53):
In many ways, it is similar to the Australian model.
It's different in terms of the leader of the country
being the president is not in Congress, whereas here Anthony
Alberanezi as a Prime Minister, would be the leader of
the House of Reps. But Congress has two chambers just
like us. They've got the House of Representatives and the Senate.
In the House of Representatives, a party needs two hundred

(04:13):
and eighteen votes to pass a bill before it can
be sent up to the Senate right now, the Republicans
have a majority by one. They've got two hundred and
nineteen seats, the Democrats have two hundred and thirteen, and
there's three spots that are vacant. And in the Senate,
most bills need fifty one votes to pass. It's one
hundred seats in the Senate, but spending bills like a

(04:33):
budget needs sixty votes. Now, the problem is that the
Republicans have fifty three seats there, so they've got enough
to pass another bill, but when it comes to budgetary bills,
they don't have enough. They actually need the support of
seven Democrats. The Democrats have forty seven seats, then there's
two independents, and that's where things have fallen down.

Speaker 1 (04:52):
Got it. So the budget was able to pass the
House because they passed the House control the House exactly,
But then it wasn't able to pass the Senate because
even though they have a majority there, they don't have
enough of a majority to pass.

Speaker 2 (05:05):
A budget exactly. And that's where that negotiation point I
made earlier really came into play. Is the Democrats basically said,
we will support the passage of this budget through the
Senate if you give us AB and C. The Republicans
couldn't meet those demands, and that's where things fell apart.

Speaker 1 (05:21):
And so what happens during a shutdown, like do people
just stop working?

Speaker 2 (05:26):
Well, a chunk of the federal government stops operating. About
twenty five percent of the federal government completely stops. I
think the National Park Service is a really interesting one.
So these are the employees who would sit at a
boomgate of cars looking to enter a national park, or
they'd be working on sustainability measures in the park safety

(05:46):
that's not seen as an essential service, So those people
are immediately furloughed or cush essentially. The other seventy five
percent continues, and we're talking there about things like air
traffic control security and airport police ambulances, that kind of stuff.
They continue, but employees don't get paid.

Speaker 1 (06:07):
So they're required to rock up to work, but they
know that they might not be paid for that for
a while until this budget.

Speaker 2 (06:15):
Goes through exactly. So they're back paid when the budget
does eventually go through. They're paid for all of their time.
But the twenty five percent that is kind of dismissed
on the spot. We're talking there about four million federal employees.

Speaker 1 (06:29):
That's a lot. So four million people who no longer
work and suddenly wake up knowing that they don't have
a paycheck coming.

Speaker 2 (06:37):
Yeah, and it's a bit more complicated than that in
terms of most of these shutdowns are resolved in a
couple of days, and these people are immediately rehired and
there's a gap where they weren't covered. But then it's
kind of business as usual. But it can get really messy.
I mean there are non essential federal employees who may

(06:59):
suddenly have to use food services, or there's stories about
kids being withdrawn from school because parents who are non
essential employees can't afford petrol to get in their car.
Then there's also stories of like military personnel who are
told to continue working but may go a full month
without a paycheck.

Speaker 1 (07:18):
Okay, so I understand what happens during the shutdown. One
thing that I think we've kind of skimmed over is
what actually led to this and what in particular, the
Democrats and the Republicans aren't agreeing on that has meant
that this shutdown has happened.

Speaker 2 (07:34):
So the Republican controlled House, they passed that continuing resolution.
I spoke about the band Aid they passed that in
September that would have given everybody funding until the end
of November, and we got some clues in that as
to what the key issues were. And essentially we're talking
here about probably two primary issues. One is the bucket

(07:57):
of healthcare, the very complex bucket of healthcare. In the UA,
Democrats essentially wanted temporary healthcare subsidies introduced under former President
Barack Obama. You might have heard the term Obamacare. So
those were temporary subsidies that are about to expire, and
Democrats wanted to make them permanent subsidies. Republicans opposed this.
They said that this would really ramp up the cost

(08:19):
of the American healthcare system. Who pays for the system
its taxpayers. That would put pressure on cost of living.
Then there's also some proposed cuts by the Republicans to
particular health agencies. The new head of America's health system,
RFK Junior, has some controversial policies on things like vaccines
or the treatment of some infectious diseases. Then a third

(08:40):
problem in healthcare is the availability of healthcare to undocumented migrants.
Then you have another topic of presidential authority. And this
won't surprise people listening, but Democrats wanted to restrict the
president's ability to withhold funding for programs that had already
been approved by Congress. So an example would be an

(09:01):
eighteen billion dollar infrastructure program for New York that would
have upgraded trains around the city of New York City
that passed Congress, and then President Trump used his powers
to defund that program. So Democrats wanted to remove that
power to do that to programs that have been approved.
Republicans said that we need to look to the Supreme

(09:23):
Court ruling. The Supreme Court recently ruled that that's okay
to do and that executive control, according to the Constitution,
needs to stay with the president.

Speaker 1 (09:33):
What I think is interesting is, you know, America is
so divided politically, and the fact that they do need
to negotiate on these points that are so fraught between
the two parties, it's almost surprising to me that this
doesn't happen more.

Speaker 2 (09:49):
Well, I feel like there's so much money in that
budget that both sides will often find ways to make
each other happy. Yes, and to you know, you give
a little bit of leniency over here in healthcare, will
make sure that there's more in defense of the southern
bar and there's this big kind of to and fro
process because both parties know that eventually the other one

(10:12):
will be in power, and so there's also a bit
of kind of a favor system and the negotiation system
of some of these politicians have been working together for
thirty forty years, so they have the trust to be
able to build a negotiated budget together.

Speaker 1 (10:24):
What have passed shutdowns been like, because, like you said
at the top, this isn't the first time it's happened.

Speaker 2 (10:30):
Yeah, well, I was reading. I think every president maybe
except one since the seventies has had a shutdown. Some
are a couple of days. The longest one in history
was thirty five days, and that was in twenty eighteen,
and in that scenario, three hundred thousand federal workers were furloughed,
so they were dismissed, and they were totally unpaid in

(10:50):
that period. Usually a federal government shutdown is seen as
this really negative thing by both Republicans and Democrats, and
so it's normally resolved pretty quickly. Neither party want to
answer to their constituents of why am I out of work?
Why can't I access public resources? And so thirty five
days was pretty long, and I think the second longest

(11:14):
was in the twenties, so that was a rarity in itself.
Analysts say that we could be headed towards the thirty
five day mark and even beyond.

Speaker 1 (11:22):
Really, yeah, so we think that this is going to
go on for a long time.

Speaker 2 (11:26):
Yeah. And the phrase that a lot of US media
outlets are using is that this shutdown feels different. Well,
the reason really is the way that the Trump administration
is talking about the shutdown. The president sets the tone,
especially for the Republicans who control the House and control
the Senate. He's positioning it as a way to actually
permanently close some of the federal agencies that his administration

(11:50):
has been talking about wanting to close for a long time.
And so think about it, like these people are dismissed
because there's no more funding for the federal government for
say two weeks. It's an opportunity for the Trump administration
to actually permanently take away that institution.

Speaker 1 (12:07):
And this is part of we know that US President
Donald Trump is wanting to cut spending from the budget,
so he's kind of seeing this as a way to
do that exactly.

Speaker 2 (12:15):
And that's not a new idea. There was a similar
threat to shut down the government back in March with
the previous year's budget, and Chuck Schumer, who's one of
the senior members of the Democrats, he actually decided to
vote with the Republicans to avoid what he said would
be a situation where Trump could permanently dismantle some of
these agencies. Now six months on, Schumer has flipped his vote,

(12:38):
and he's actually said, I know that I said that
back in March. Now that we're here in October, the
threat to our democracy is too real. We need to
take stronger action than a negotiated outcome.

Speaker 1 (12:50):
It's such a complex situation.

Speaker 2 (12:52):
But yeah, sorry, I thought that was a complex one
of that definitely ask questions in the comments or DMUs
as that's a take in.

Speaker 1 (13:00):
I feel like every time I said this is my understanding,
you're like, yeah, kind of, that's a lot more complex
than that.

Speaker 2 (13:06):
Well, people, you know, people have designed over two hundred
and fifty years a US system that is really really complex.
Whichever way you can.

Speaker 1 (13:15):
Well, thank you so much for explaining it to us.
Thanks Billy, and thank you so much for listening to
this episode of The Daily OS. We hope that you
have a great October third. There is much to celebrate today.
We'll be back this afternoon with your evening headlines, but
until then, have a great day. My name is Lily
Maddon and I'm a proud Arunda Bungelung Kalkottin woman from

(13:38):
Gadigol Country. The Daily oz acknowledges that this podcast is
recorded on the lands of the Gadighl people and pays
respect to all Aboriginal and Torres Strait Island and nations.
We pay our respects to the first peoples of these countries,
both past and present,
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