Title: U.S. Government Faces Shutdown as Funding Deadline Approaches
The U.S. government is on the brink of a shutdown, according to Vice President JD Vance. He made this statement following a meeting at the White House with President Donald Trump and congressional leaders. The meeting took place just one day before the federal funding deadline, which is set for midnight Tuesday.
Vance expressed concern, stating, "I think we’re headed into a shutdown because the Democrats won’t do the right thing." He urged Democrats to reconsider their stance.
The meeting included discussions between Trump and top leaders from both parties, but no significant progress was made. Senate Democratic Leader Chuck Schumer noted that the two sides remain far apart on key issues. He said, "If he will accept some of the things we asked, which we think the American people are for, on health care and on rescissions, he can avoid a shutdown, but there are still large differences between us."
Senate Republican Majority Leader John Thune criticized Democrats for not supporting a short-term spending bill that would keep the government funded until November 21. He described their actions as "hostage taking" but indicated a willingness to continue discussions after addressing the immediate funding crisis.
Vance mentioned that there are areas where compromise could be reached, particularly regarding rural health care funding. However, with a Republican majority in the Senate, GOP leaders will need at least eight Democratic votes to pass any funding measure, especially with opposition from some Republican senators like Rand Paul of Kentucky.
A government shutdown would have significant consequences, including delays in the release of important economic data, such as the monthly employment report. It could also lead to the furlough of hundreds of thousands of federal workers, while others would be required to work without pay to maintain essential services.
The Bureau of Labor Statistics announced it would not release economic data during a potential shutdown, causing U.S. stocks to lose some gains. Trump has threatened to fire federal workers permanently if the government shuts down, which could further impact the economy. Historically, furloughed employees have returned to work and received back pay once the government reopens.
Vance assured reporters that "essential services" would continue to operate during a shutdown. This would mark the first government shutdown since 2018-2019, which lasted five weeks during Trump’s first term.
House Minority Leader Hakeem Jeffries stated that Democrats would not accept vague promises to collaborate on health care policy in exchange for their votes on a short-term spending bill. He emphasized, "No one can trust their word on health care," referencing the Republican efforts to repeal the Affordable Care Act over the past decade.
Democrats are advocating for a $350 billion plan to permanently extend tax credits under the Affordable Care Act for middle-class families, aiming to prevent a spike in premiums. They also seek to reverse Medicaid cuts included in Trump’s tax legislation, which introduced new work requirements and limited states' ability to increase Medicaid reimbursement rates. Additionally, they want to restore funding for medical research and prevent the White House from rescinding previously approved appropriations.