Shutdown Threat! Trump and Congress Fail to Reach Budget Deal
US President Donald Trump's meeting with congressional leaders from both parties at the White House on Monday evening local time ended without an agreement. This meeting was expected to provide a way out to avert a government shutdown that was just hours away.
According to an Associated Press report, the main debate was over the Democrats' proposal to include government funding along with an extension of health insurance subsidies under the Affordable Care Act (ACA). Democrats argued that if these subsidies were not extended, millions of people would be directly impacted. In contrast, Republicans, along with the White House, pushed for a clean continuing resolution—a temporary funding extension without additional policy provisions.
"We're getting close to a shutdown," said Vice President JD Vance, warning that the impasse could have serious consequences for public services if not resolved quickly.
Several reports indicate that the administration has asked federal agencies to prepare contingency plans. If no budget agreement is reached by the Tuesday evening deadline, thousands of non-essential federal employees will be furloughed, while non-urgent public services such as national museums and some administrative offices will be closed. Employees who remain employed in essential sectors—including the military, security, and air traffic controllers—will likely experience pay delays.
Reuters noted that if a shutdown does occur, nearly 41% of federal healthcare workers would be directly impacted by temporary layoffs. This situation has the potential to trigger turmoil in financial markets and slow economic growth through the fourth quarter of 2025.
This budget impasse is reminiscent of the longest shutdown in US history, a 35-day shutdown in 2018–2019, also under the Donald Trump administration, which was triggered by a dispute over funding for a border wall with Mexico.
With time running out, the spotlight is now on Capitol Hill. If a compromise cannot be reached, the United States will face another government shutdown, potentially destabilizing the domestic economy and global markets.
Source: Newsmaker.id
