Listen to this articleThe basics:
- Shutdown began Oct. 1 after Senate failed to pass stopgap funding bill.
- NJ has roughly 22,000 federal workers affected; essential services continue.
- Key disputes include ACA subsidies, Medicaid funding, and healthcare coverage.
- State leaders, including Gov. Murphy and Senators Booker and Kim, criticize the shutdown.
A federal government shutdown has gripped the state and the nation.
After the Senate failed to reach a deal to end the impasse, the government shutdown as of midnight Oct. 1, which continues now – more than 13 hours in as of this writing.
While both sides exchange blame and point fingers, the main sticking point has centered around health care, particularly Affordable Care Act subsidies, a rollback of Medicaid cuts, and a stop to further recissions.
Republicans argue that Democrats seek to shut down the government to give free health care to undocumented immigrants. However, that line is not exactly true, according to fact checks.
GOP members passed a stopgap funding bill in the House. However, the measure failed in the Senate, where at least seven Democrat votes are needed.
The last government shutdown – the longest in history – began at the end of the 2018 and lasted 34 days, until Jan. 25, 2019.
22K workers
The immediate impact is hundreds of thousands of federal workers furloughed throughout the country. New Jersey has roughly 22,000 federal workers.
And while essential services remain ongoing, what it will mean for citizens is an interruption to a number of government services, the closure of national parks and more.
The White House has been aggressive in blaming Democrats.
“Democrats in Congress have officially shut down the United States government,” White House Press Secretary Karoline Leavitt said at her Wednesday afternoon briefing. “House Republicans passed a nonpartisan, clean piece of legislation to extend current government funding until Nov. 21. But nearly every single Democrat senator voted against this bill.
“This was the exact same bill that Democrats approved six short months ago in March, just adjusted for inflation.”
But Democrats continue to dig their heels in.
“It’s October 1st, and it’s the first day of Donald Trump’s government shutdown,” Senate Minority Leader Chuck Schumer, D-N.Y., wrote on social media. “Donald Trump and Republicans have barreled us into a shutdown because they refused to protect Americans healthcare.”
Local sentiment
As for the response from Jersey leaders.
“If Republicans were serious about keeping the government open, they would have come to the table to address the health care crisis they have singlehandedly manufactured,” said U.S. Sen. Cory Booker, a Democrat, in an Oct. 1 statement. “President Trump and Republicans control the White House, the Senate, and the House of Representatives.
“Together, they put forth a budget without any input from Democrats, and repeatedly refused to work across the aisle to negotiate a funding bill that could address the pain their policies have caused and actually earn Democratic support.”
In a floor speech following a Town Hall he held last night, U.S. Sen. Andy Kim, a Democrat, said, “I rise today because I have literally just come from hosting a telephone town hall with over 5,200 people back home in New Jersey; thousands of people from across New Jersey who called in specifically because they know this shutdown will be happening in just a couple hours from now.
“They’re scared. They’re nervous about what comes next. And they’re pissed off. And they have a right to be.”
U.S. Rep. Tom Kean Jr., R-7th District, wrote last night on social media, “While three of their colleagues cross the aisle, @SenBooker and @SenatorAndyKim chose partisanship and voted to shut down the government tonight. That’s disappointing. A shutdown has real consequences for families and communities in New Jersey, and they will have to answer for this decision. It’s time to come together and pass the House’s short-term funding bill.”
Minimizing impact
At this point, the sides seem pretty far apart on bridging the gap.
Gov. Phil Murphy released a statement a short time ago Wednesday, blaming Republicans and pointing to their control of every arm of government in Washington.
“But instead of upholding their most basic duty — keeping the government open — they are abandoning the American people and threatening to raise costs for millions of working families, including thousands here in New Jersey,” said Murphy. “After months of chaos in Washington, the American people are already being battered by high costs and reckless federal cuts. And now, Congressional Republicans want to make matters worse by refusing to restore funding for Medicaid and raising health care premiums.
“Imagine that: Republicans want working families to pay more for health care so wealthy corporations can pay less in taxes. It is as insulting as it is nonsensical,” Murphy continued. “This Republican government shutdown is a disaster for the more than 22,000 federal employees who call New Jersey home, as well as the hundreds of thousands of our neighbors who rely on the federal government for critical services.
“To help mitigate the damage, I have directed state agencies to do whatever they can to minimize the shutdown’s impact on our residents.”
Let’s be clear: Republicans control every arm of government in Washington and could end this shutdown today if they did their jobs.
Unlike them, the people of New Jersey don’t have time to waste. Congressional Republicans must reopen the government immediately. pic.twitter.com/B2JvXsmy31
— Governor Phil Murphy (@GovMurphy) October 1, 2025
In the early hours of this shutdown, a new front in the fight also emerged.
Office of Management and Budget Director Russ Vought posted on X Oct. 1 that roughly $18 billion in New York City infrastructure projects – including the Hudson Tunnel Project – are now on hold. He cited “unconstitutional DEI principles.”
That action is being perceived as a way to increase pressure on Schumer; House Minority Leader Hakeem Jeffries, D-N.Y.-8th District; and other Democrats as this shutdown continues. Learn more about the HTP situation from NJBIZ with our coverage, here.
Inhibiting innovation
BioNJ released a statement saying it is deeply concerned about the disruption to essential programs and agencies that fuel life sciences innovation, pointing to now-halted research supported by the National Institutes of Health, furloughs at the Food and Drug Administration, as well as expirations of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.
While we recognize these negotiations reach beyond the life sciences sector, we urge federal leaders to act swiftly.
— Debbie Hart, president and CEO, BioNJ
“These delays are avoidable obstacles that inhibit innovation and diminish economic competitiveness,” BioNJ President and CEO Debbie Hart said in a statement. “While we recognize these negotiations reach beyond the life sciences sector, we urge federal leaders to act swiftly.
“The life sciences industry is a cornerstone of both the U.S. economy and national security. BioNJ urges a resolution to minimize disruptions.”
New Jersey Citizens Action Healthcare Program Director Laura Waddell said in a statement:
“President Trump and his GOP allies would rather shut down the government than pass policies that protect patients from skyrocketing health care premiums and lower drug prices. Their refusal to extend enhanced premium tax credits that make health insurance affordable means that millions of Americans, including 341,834 in New Jersey, risk losing their health care coverage or facing staggering premium increases.
“Instead, the Trump administration chooses to side with big pharmaceutical corporations, insurance companies, and the ultra-wealthy, protecting profits and tax breaks by taking health care, affordable drugs and other benefits away from everyday Americans.”
Please stay tuned to NJBIZ for the very latest.
