U.S. Faces Shutdown as Congress Stalemate Escalates/ Newslooks/ WASHINGTON/ J. Mansour/ morning Edition/ The U.S. government faces its first shutdown in nearly seven years as Republicans and Democrats remain deadlocked over spending and health care subsidies. President Trump and congressional leaders failed to reach a deal at the White House, leaving thousands of federal workers bracing for furloughs or layoffs.
U.S. Shutdown Standoff Quick Looks
- Shutdown deadline: 12:01 a.m. Wednesday if no deal
- Trigger issue: Expiring Affordable Care Act tax credits
- Republicans push for “clean” funding extension with no add-ons
- Democrats demand subsidies and other protections before voting
- Trump unmoved after White House talks with Schumer, Jeffries, Thune, Johnson
- Senate math: GOP needs 60 votes, requiring 8 Democrats
- Federal agencies issue furlough and contingency notices
- Activists push Democrats to stand firm, even if shutdown occurs
- Markets and economy brace for possible disruption
- Political blame game intensifies as deadline nears
U.S. Faces Shutdown as Congress Stalemate Escalates
Deep Look
The U.S. government stands hours away from its first shutdown in nearly seven years, with Congress mired in a deep partisan standoff that shows little sign of breaking.
How It Started
At the heart of the dispute are expiring health care subsidies tied to the Affordable Care Act. Democrats insist that any short-term funding measure must include an extension of tax credits that help millions afford health coverage. Republicans, led by President Donald Trump and Senate Majority Leader John Thune, argue the stopgap bill should simply keep the government open while longer-term spending bills are finalized.
If no deal is reached, the government will shut down at 12:01 a.m. Wednesday. The House already passed a seven-week funding extension, but Senate Democrats are threatening a filibuster unless their demands are addressed.
No Deal at the White House
On Monday, Trump convened congressional leaders at the White House — Senate Democratic Leader Chuck Schumer, House Democratic Leader Hakeem Jeffries, Speaker Mike Johnson, and Thune. The meeting was Trump’s first with all four leaders since returning to the Oval Office in his second term.
By all accounts, it did little to bridge the divide.
“Their ideas are not very good ones,” Trump said afterward, signaling he had no plans to bend.
Schumer described the meeting as “candid” but said Trump “was not aware” of the looming spike in health insurance costs if subsidies expire.
Jeffries, meanwhile, accused Trump of mocking Democrats online with a doctored video after the meeting, calling the post “bigotry” and vowing Democrats would not “back down.”
Vice President JD Vance told Fox News afterward: “I think we’re headed into a shutdown, because the Democrats won’t do the right thing.”
The Stakes for Health Care
The ACA tax credits were expanded during the COVID-19 pandemic to lower premiums for low- and middle-income families. They are scheduled to lapse on December 31, but Democrats want an extension passed now to prevent uncertainty.
“We are not going to support a partisan Republican spending bill that continues to gut the health care of everyday Americans,” Jeffries declared.
Republicans counter that subsidies can be debated later, with Thune saying the Democratic maneuver was “hijacking” the budget process. Some in the GOP support extending credits but want restrictions to curb costs and tighten eligibility.
Democrats Under Pressure
For Democrats, the impasse is politically tricky. The party has long denounced shutdowns as “pointless and destructive,” but grassroots groups are pressuring lawmakers to finally stand firm against Trump.
Earlier this year, Schumer took heavy criticism from his own base after he and nine other Democrats voted with Republicans to avert a shutdown. Activists now warn Democrats risk alienating voters if they cave again.
Schumer says circumstances have changed, pointing to the passage of the Republican tax bill this summer that slashed Medicaid funding.
“There’s a difference between keeping the lights on and ignoring damage already being done,” he said.
Countdown to Shutdown
With just hours before the deadline, federal agencies have started issuing contingency notices to employees. These include details about which operations will continue, who will be furloughed, and which essential workers must stay on the job without pay until funding is restored.
The White House budget office, led by Trump ally Russ Vought, warned that the shutdown could mean “broad layoffs across the government.” Vought accused Democrats of “hostage-taking,” even though he once advised conservatives to use shutdown threats as leverage in negotiations.
Markets are also watching nervously. While past shutdowns have often produced limited short-term economic harm, analysts warn this one could be different if prolonged, particularly because it could delay the release of critical economic data at a time of global uncertainty.
Political Fallout
Both parties are already framing the blame. Republicans insist Democrats are sabotaging a simple funding extension. Democrats say the GOP is refusing to negotiate while controlling both the White House and Congress.
Senator Gary Peters of Michigan, a Democrat, struck a cautious tone. “A lot can happen in this place in a short period of time,” he said, leaving open the possibility of a last-minute compromise.
But Vice President Vance voiced what many on Capitol Hill already suspect: barring a sudden reversal, the government is likely to begin shutting down by midnight.
If that happens, it will mark the first U.S. government shutdown since 2018 — and set the stage for a bruising political fight as both sides test how far they are willing to go.
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