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US Government Shuts Down After Budget Impasse

The US federal government entered shutdown at midnight after Congress failed to pass a stopgap funding bill. Democrats demanded billions in healthcare spending, while President Trump blamed them for the deadlock and threatened job cuts.

The United States federal government shut down early Wednesday after lawmakers and President Donald Trump failed to resolve a bitter budget standoff. Talks collapsed as Democrats conditioned their support for a temporary funding bill on restoring healthcare allocations, particularly for low-income households. With no deal in sight, operations at federal agencies have been suspended and hundreds of thousands of government workers face furloughs or unpaid work.

Democrats push for healthcare funding

Senate Democrats overwhelmingly rejected a seven-week funding extension that had cleared the House, citing the exclusion of healthcare spending they said was vital to families reliant on the Affordable Care Act. House Democratic Leader Hakeem Jeffries accused Republicans of “marching the country” into a shutdown over their refusal to negotiate protections for healthcare programs.

Trump: “Good can come from shutdowns”

President Trump, speaking in the Oval Office, placed the blame squarely on Democrats and suggested the shutdown could be used to cut what he called “Democrat things.” He warned of large-scale layoffs in the federal workforce and signaled he was prepared to target social programs in retaliation. “We’d be laying off a lot of people that are going to be very affected. And they’re Democrats, they’re going to be Democrats,” Trump told reporters.

Federal agencies brace for disruption

The shutdown, the first since the record 35-day closure in 2019, will affect multiple agencies, sidelining up to 750,000 workers according to Congressional Budget Office estimates. Essential services such as the military, postal service, Social Security and food stamps will continue. But hundreds of thousands of federal employees will either be furloughed or forced to work without pay until a new spending deal is reached.

A recurring standoff in Congress

Since the modern budget process was introduced in 1976, the federal government has shut down 21 times. Most lasted only hours, but the longest stretched from late 2018 into January 2019, when Trump clashed with Democrats over border wall funding. The latest impasse comes eight months into Trump’s second term, a period marked by sweeping cuts and the dismantling of several federal agencies.

What’s next?

The Senate is due back in session Wednesday but will recess for Yom Kippur on Thursday, returning Friday with weekend negotiations possible. Republicans had sought to extend funding through late November while longer-term talks continued, but without the 60 Senate votes required, a resolution remains uncertain.

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