Washington faces a looming government shutdown as lawmakers struggle to agree on funding before the midnight deadline.
WASHINGTON
The U.S. government edged closer to a shutdown on Tuesday with little sign of compromise between Republicans and Democrats ahead of a midnight funding deadline.
The Senate, controlled by Republicans, is preparing to vote on a stopgap spending measure that has already failed once. Democrats insist the bill include an extension of healthcare subsidies set to expire this year, arguing it would benefit millions of Americans. Republicans counter that healthcare must be addressed separately. Even if the Senate passes a revised bill, the Republican-led House is not scheduled to reconvene until after the deadline, further narrowing the chances of a deal.
Federal agencies have released contingency plans, warning of furloughs for thousands of workers and closures of research and customer service offices. Airlines have said delays are likely, while the Labor Department cautioned that its monthly jobs report would be suspended.
President Donald Trump, who has clashed with Democrats over spending priorities, has threatened broader layoffs of federal employees deemed “nonessential.” He has also withheld billions of dollars previously approved by Congress, fueling Democratic resistance to passing new spending bills.
Democrats, led by Senate Majority Leader Chuck Schumer, argue that Trump privately signaled interest in preserving tax credits that lower healthcare costs, but Republicans maintain they will not negotiate under shutdown threats.
The impasse endangers $1.7 trillion in agency funding, roughly a quarter of the federal budget. With both sides under pressure before the 2026 midterms, the standoff underscores deep partisan divides that have made shutdown threats a recurring feature of U.S. politics.