October 1, 2025policy changedefensefederal budgetmilitary personnelappropriationsgovernment shutdownmilitary payappropriations
FY2026 continuing resolution lapses, triggering first government shutdown where all DOD appropriations expire simultaneously
Congress failed to pass any FY2026 appropriations or continuing resolution before the September 30, 2025, fiscal year deadline, triggering a government shutdown that for the first time in modern history allowed all 12 annual appropriations bills -- including the Defense Department bill -- to lapse simultaneously. This eliminated the legal mechanism that had protected military pay in every previous shutdown since 1981. At least 670,000 federal employees were furloughed while roughly 730,000 were ordered to work without pay.