WASHINGTON — With no deal in sight to extend funding, the U.S. is now in a government shutdown, following the failure of President Donald Trump and Congress to reach an agreement by Wednesday’s deadline, resulting in a wave of uncertainty.
An estimated 750,000 federal employees are expected to face furloughs, and some might even lose their jobs due to the administration’s actions. Several government offices are at risk of closing permanently as Trump pledges consequential measures as punishment. Meanwhile, his agenda on deportation is expected to proceed, while sectors like education and the environment experience disruptions. The economic impact is likely to spread across the country.
“We don’t want it to shut down,” Trump said at the White House before the midnight deadline.
Yet, despite private meetings held with congressional leaders, the president was unable to broker a deal between the Democrats and Republicans to avoid the shutdown.
This marks Trump’s third instance overseeing a federal funding gap, the first following his return to office this year, highlighting a history marked by a stark political split over budget issues. This atmosphere encourages rigid stances over more traditional negotiation tactics.
Plenty of blame being thrown around
Typically inclined to maintain government operations, the Democrats initiated this standoff, pushed by constituents to counter the president’s second-term goals. Their demands include financial support for expiring health care subsidies under the Affordable Care Act, which are causing insurance premiums to rise nationally.
Currently, Republicans have opted out of negotiations and advised Trump against engaging in discussions. After a meeting at the White House, the president released a mocking video targeting Democratic leaders, which many criticized as both inappropriate and offensive.
What neither side has devised is an easy offramp to prevent what could become a protracted closure. The ramifications are certain to spread beyond the political arena, upending the lives of Americans who rely on the government for benefit payments, work contracts and the various services being thrown into turmoil.
“What the government spends money on is a demonstration of our country’s priorities,” said Rachel Snyderman, a former White House budget official who is the managing director of economic policy at the Bipartisan Policy Center, a think tank in Washington.
Shutdowns, she said, “only inflict economic cost, fear and confusion across the country.”
Economic fallout expected to ripple nationwide
An economic jolt could be felt in a matter of days. The government is expected Friday to produce its monthly jobs report, which may or may not be delivered.
While the financial markets have generally “shrugged” during past shutdowns, according to a Goldman Sachs analysis, this one could be different partly because there are no signs of broader negotiations.
“There are also few good analogies to this week’s potential shutdown,” the analysis said.
Across the government, preparations have been underway. Trump’s Office of Management and Budget, headed by Russ Vought, directed agencies to execute plans for not just furloughs, as are typical during a federal funding lapse, but mass firings of federal workers. It’s part of the Trump administration’s mission, including its Department of Government Efficiency, to shrink the federal government.
What’s staying open and shutting down
The Medicare and Medicaid health care programs are expected to continue, though staffing shortages could mean delays for some services. The Pentagon would still function. And most employees will stay on the job at the Department of Homeland Security.
But Trump has warned that the administration could focus on programs that are important to Democrats, “cutting vast numbers of people out, cutting things that they like, cutting programs that they like.”
As agencies sort out which workers are essential, or not, Smithsonian museums are expected to stay open at least until Monday. A group of former national park superintendents urged the Trump administration to close the parks to visitors, arguing that poorly staffed parks in a shutdown are a danger to the public and put park resources at risk.
No easy exit as health care costs soar
Ahead of Wednesday’s start of the fiscal year, House Republicans had approved a temporary funding bill, over opposition from Democrats, to keep government running into mid-November while broader negotiations continue.
But that bill has failed repeatedly in the Senate, including late Tuesday. It takes a 60-vote threshold for approval, which requires cooperation between the two parties. A Democratic bill also failed. With a 53-47 GOP majority, Democrats are leveraging their votes to demand negotiation.
Senate Majority Leader John Thune has said Republicans are happy to discuss the health care issue with Democrats – but not as part of talks to keep the government open. More votes are expected Wednesday.
The standoff is a political test for Senate Democratic leader Chuck Schumer, who has drawn scorn from a restive base of left-flank voters pushing the party to hold firm in its demands for health care funding.
“Americans are hurting with higher costs,” Schumer said after the failed vote Tuesday.
House Speaker Mike Johnson sent lawmakers home nearly two weeks ago after having passed the GOP bill, blaming Democrats for the shutdown.
“They want to fight Trump,” Johnson said Tuesday on CNBC. “A lot of good people are going to be hurt because of this.”
Trump, during his meeting with the congressional leaders, expressed surprise at the scope of the rising costs of health care, but Democrats left with no path toward talks.
During Trump’s first term, the nation endured its longest-ever shutdown, 35 days, over his demands for funds Congress refused to provide to build his promised U.S.-Mexico border wall.
In 2013, the government shut down for 16 days during the Obama presidency over GOP demands to repeal and replace the Affordable Care Act, also known as Obamacare. Other closures date back decades.
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Associated Press writers Matt Brown, Joey Cappelletti, Will Weissert, Fatima Hussein and other AP reporters nationwide contributed to this report.
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