A plywood plant closure follows the paper mill shutdown that cut 130 roles in June.

The US government has been shut down for the first time in more than six years after Democrats and Republicans failed to agree on federal funding by midnight on October 1 (2pm today AEST).

Democrats voted down a Republican bill to grant temporary funding earlier this morning, which would have prevented the shutdown, as both parties remain in a deadlock about health benefits.

Federal agencies were ordered to make preparations hours before the deadline, as hundreds and thousands of federal workers will have their pay impacted.

Here is exactly what that means. 

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What is a government shutdown?

Federal agencies across the country will be shuttered, with non-essential workers, like park rangers, put on leave without pay.

Essential federal workers, like the military, immigration and airport security, will continue to work but will not get paid until after the shutdown.

About 750,000 workers will be furloughed each day in the shutdown, with the total daily cost of their compensation reaching $US400 million ($600 million), according to Congressional Budget Office estimates released yesterday.

UNSW international relations professor William Clapton said the shutdown was "more of a pause".

"What normally happens is that there's a core set of services that don't stop, and that's things like defence, law enforcement, social security, Medicare. Those have generally continued through all the previous shutdowns," he said.

Shutdowns usually arise over disagreements about the federal budget, but can also be used as a negotiation tool and political tactic.

"The American people get caught up in the middle, because they lose access to services that the government normally would provide," Clapton said.

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When was the last US government shutdown?

The last shutdown was sparked by US President Donald Trump's multibillion-dollar request to build a wall on the US-Mexico border during his first term.

It lasted a historic 34 days from December 2018 to January 2019, with about 800,000 of the 2.1 million federal workers furloughed.

"That's obviously a massive impact for those people, their ability to pay their bills, to live their lives," Clapton said.

Former president Bill Clinton held the previous record of the longest shutdown in US history, 21 days in 1996.

There were two other shutdowns during Trump's first term, one lasting three days and the other lasting just several hours.

There have been 21 US government shutdowns in the past 50 years.

"There's kind of an inherent instability at times with regards to government funding in the US," Clapton said.

"It's not the first shutdown, and the fact that it kind of keeps happening sort of speaks to, yeah, the complexities and the pitfalls, if you will, of America's peculiar and unique system of government."

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Why is the US government heading towards another shutdown?

Democrats are fighting the Republicans on healthcare benefits and are making good on their threat to shut down the government if their opponents do not extend tax credits to subsidise health insurance.

Those credits are set to expire by the end of the year.

Both sides have been at an impasse in the days leading up to the start of the new fiscal year on October 1 — the date when the Senate was set to pass a new appropriations bill.

Senate Democratic Leader Chuck Schumer said Republicans are trying to "bully" Democrats by refusing to negotiate the extension and other priorities.

Trump and his fellow Republicans said they would not make any changes, arguing that their bill is a stripped-down and "clean" legislation that should be non-controversial.

Senate Republican Majority Leader John Thune said Republicans "are not going to be held hostage" by the Democrats' demands.

This morning, the Republicans introduced a bill that would keep funding the government for seven weeks while legislators finish working on the appropriations bill, but it was voted down by the Democrats.

The Republicans hold the power in the Senate, but needed 60 votes to pass the bill to avoid a filibuster, meaning some Democrats would have had to support it. 

"It seems that the Democrats have used that as leverage to kind of try and get the Republicans to meet their demands with regards to health care funding in particular," Clapton said.

It set the path for the shutdown. 

Federal agencies are making their preparations ahead of the start of the business day.

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When does the shutdown start?

The shutdown started at 12.01am today (2.01pm AEST).

It's hard to say how long the shutdown will last or what the effects will be, and it will largely rely on how quickly Democrats and Republicans can come to an agreement.

"I think the really interesting question now will be how the negotiations between the Democrats and the Republicans play out, and the ways in which the key players kind of use this for political advantage," Clapton said. 

Previous shutdowns lasted an average of eight days. 

What makes this shutdown different from the others?

Trump has signalled that he may use a shutdown to cut the number of federal workers, ordering federal agencies to draft plans for sweeping layoffs if both sides cannot reach an agreement.

He said it could include "cutting vast numbers of people out, cutting things that they like, cutting programs that they like".

Clapton said he believes the administration has some leeway with funding decisions that may allow Trump to fire workers across several departments.

"That is within the authority of the president," he said.

Trump's threat comes at the same time as more than 100,000 federal workers are set to resign from their roles after accepting Trump's deferred resignation program as part of his effort to reduce the federal workforce.

It is shaping up to be one of the largest mass resignations in US history. 

https://x.com/WhiteHouse/status/1973207951692407085

Will a shutdown affect travel to the US?

No, immigration and airport security are deemed essential services and will continue to run throughout the shutdown.

It should not affect any Australians travelling to the US, but could impact the quality of the visit, as many federal services like national parks and museums likely be closed.

"It's not necessarily the best time to be going to the US," Clapton said.

"People aren't going to be able to access some of those landmarks of the American government that you normally would if the government was functioning as it usually does."

— With Associated Press 

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It was his second day on the job when the incident unfolded.

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One deer had become tangled in a fence by its antlers and had to be euthanised.

A local resident interrupted Treasurer Jim Chalmers' press conference in Queensland to ask the government for help following a "horrific" attack on her home.

Chalmers was speaking at a media conference in the Brisbane suburb of Logan when a woman, later identified as Anoushka Arro, said she had a plea for the state's Minister for Housing Sam O'Connor.

"I recently have been the victim of an absolutely horrific, catastrophic event at my home, where the front gate was ripped off of my property onto the road," she said.

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"I live in fear. I have emailed him. I have tried to get some sort of resolve for the situation I am living under.

"I have counsel who are now assisting [me] but I am not being given anything from the state government."

Arro, who previously ran as a Logan City Council candidate, claimed tenants of public housing on her street have been harassing her.

She told Chalmers she can't leave her home because she is so "deeply scared".

"I want something addressed. I am shaking because I am so fearful and scared," she added.

"I can't leave my home, this person has a network of hoons, who drive past my house."

Chalmers said he was sorry to hear the woman was going through a difficult time.

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He asked for a private conversation to discuss the matter and said he would involve local MP for Nudgee Leanne Linard.

"What we'll arrange is, if we can have a private conversation and get your details, if Leanne (Linard) is your state member, we'll make sure that Leanne makes that representation to Minister O'Connor's office in the Crisafulli government, and we'll follow that up for you," he said.

"We're so sorry you are going through this very traumatic period and we will do what we can to represent you and represent your interests.

"Thank you for raising it with us."

After Chalmers responded to a question from a journalist, the woman was seen shaking and crying.

The treasurer was speaking in Brisbane about a pay bump for aged care workers.

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Prime Minister Anthony Albanese said today he was concerned about reports BHP, Australia's biggest mining company, has been temporarily banned from exporting iron ore to China.

He was speaking amid reports by Bloomberg News that state-run iron ore trader China Mineral Resources Group (CMRG) urged local mills to temporarily pause purchases of any dollar-denominated seaborne iron ore cargoes from BHP.

"I am concerned about that and what we want to make sure is that markets operate properly, and of course, we have seen those issues in the past," Albanese said.

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"I want to see Australian iron ore to be able to be exported to China without hindrance.

"These measures are always disappointing, but let's hope, certainly, that they are very much short-term."

Albanese said it was important the ban was "resolved quickly".

The prime minister's concerns were echoed by Treasurer Jim Chalmers, who said he was seeking a meeting with BHP chief executive Mike Henry.

"I've seen those reports. They're concerning reports," he said.

"Ultimately, though, they are about the commercial arrangements between two companies. And so, in one respect, a matter for the company to work through.

"I'll have discussions with Mike Henry about that in due course, when we can set that up."

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At the opening of trading on the ASX today, shares in BHP fell 1.5 per cent.

The move by CMRG comes as contract talks between the Australian miner and Chinese buyers stall.

CMRG was created to bolster China's influence in the global iron ore market, and this move further highlights Beijing's determination to gain greater sway over prices.

Iron ore is a key ingredient in steel production, and Chinese demand for it has been instrumental in Australia's economic prosperity, accounting for up to 5 per cent of the country's gross domestic product.

Last financial year, iron ore exports were worth about $138 billion.

BHP is the world's biggest listed mining company and is a major player in the Australian share market.

A spokesperson for BHP said the company couldn't comment on commercial arrangements.

Last month, the mining giant said its annual profit dipped to the lowest in five years amid slowing demand from China-impacted iron ore prices.

– With Reuters

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A driver has died after a truck crashed into two parked trucks – while people were sleeping inside them – and caught fire in north-east Victoria early today.

It is believed the truck driver lost control before crashing into two parked trucks on the Hume Freeway near Wangaratta South just before 5am.

The driver, who is yet to be identified, died at the scene.

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The two occupants of the parked trucks were sleeping at the time and were not injured.

Police are still investigating the circumstances around the crash.

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Anyone who witnessed the incident or has dashcam or CCTV footage is urged to contact police or Crime Stoppers on 1800 333 000.

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A member of the Trump administration has seemingly raised a red flag after China bought millions of tons of Argentinian soybeans, taking advantage of a financial lifeline the US Treasury Department said it plans to provide to Buenos Aires – all while American soybean farmers are struggling with a Chinese blockade of their crops.

A photo of Treasury Secretary Scott Bessent's phone captured by the Associated Press shows a text from a contact named "BR," presumed to be US Agriculture Secretary Brooke Rollins.

The message linked to the X account of grain trader Ben Scholl, who has sounded the alarm on what Argentina's massive bailout means for America's soybean farmers.

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"Just a heads up. I am getting more intel, but this is highly unfortunate. We bailed out Argentina yesterday and in return, the Argentine's (sic) removed their export tariffs on grains, reducing their price to China at a time when we would normally be selling to China," the message said.

"Soy prices are dropping further because of it. This gives China more leverage on us. On a plane but scott I can call you when I land."

Administration officials did not respond to requests for comment.

The caught-on-camera text conversation appears to show how President Donald Trump's haphazard foreign policy agenda has produced a number of unintended negative consequences for American farmers – a situation Trump has acknowledged by suggesting his administration may take action to help bail them out.

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"There's no doubt that the farm economy is in a significant challenge right now, especially our row croppers," Rollins told reporters on Tuesday.

"The ability to offset any payments to the farmers through potential tariff revenue is really where the president wants us to head, and that's what we're looking at."

A strategic friendship that is hurting US farmers

Since taking power in 2023, Argentina's President Javier Milei has overhauled the country's spending and regulations.

That has resulted in some success, such as monthly inflation slowing from over 25 per cent to around 2 per cent.

But other corners of the Argentine economy are languishing, and the president's party got trounced in local elections earlier this month.

Milei has a powerful friend in Trump, who has praised the chainsaw-wielding libertarian and endorsed his re-election at the United Nations last week, saying: "To the people of Argentina, we're backing him 100 per cent."

The Trump administration has said it is arranging a US$20 billion ($30.25 billion) lifeline to Argentina's central bank, which would exchange US dollars for pesos to help stabilise Argentina's financial market.

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Bessent said the deal would function as a "bridge to the election," thereby allowing Milei to continue with his radical reforms.

But after Argentina temporarily rolled back its export tax on grain in the hopes of juicing sales, China snapped up "at least 10 cargoes of Argentine soybeans," according to reporting from Reuters.

The move has further complicated America's trade relationship with China: once the largest buyer of American soybeans – Beijing bought $US12.5 billion ($18.91 billion) worth last year – USDA data shows it has not purchased any US soybeans since May, amid a trade spat with Washington.

The situation has hobbled America's $US60.7 billion ($91.81 billion) soybean industry, and there seems to be no concrete solution in sight without a trade deal and China reconfiguring its soybean supply chain.

"US soybean farmers have been clear for months: the administration needs to secure a trade deal with China. China is the world's largest soybean customer and typically our top export market," American Soybean Association President Caleb Ragland said in a September 24 statement.

"The US has made zero sales to China in this new crop marketing year due to 20 per cent retaliatory tariffs imposed by China in response to US tariffs."

Trump last Thursday at the White House suggested that his administration may distribute some tariff revenue to American farmers on a temporary basis to help alleviate their financial strain from his policies.

"We're going to take some of that tariff money that we've made, we're going to give it to our farmers, who are – for a little while – going to be hurt until it kicks in, the tariffs kick in to their benefit," Trump said.

It's the latest frustration for American farmers as they start to bring in this year's crop.

"We're always hopeful that those negotiations are moving forward, but yet with harvest here, patience may be running thin," one Indiana farmer told CNN, describing the result on America's heartland of inflation, Trump's trade war and the deportation of the industry's key migrant workforce.

"This is not your ordinary farm crisis. We call it 'farmageddon'," Joe Jennings, CEO of Daitaas Holdings, a Tennessee-based farm tech and software company, told CNN.

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