WASHINGTON (AP) — Plunged into a government shutdown, the U.S. is confronting a fresh cycle of uncertainty after President Donald Trump and Congress failed to strike an agreement to keep government programs and services running by Wednesday’s deadline.
Roughly 750,000 federal workers are expected to be furloughed, some potentially fired by the Trump administration. Many offices will be shuttered, perhaps permanently, as Trump vows to “do things that are irreversible, that are bad” as retribution.
His deportation agenda is expected to run full speed ahead, while education, environmental, and other services sputter. The economic fallout is expected to ripple nationwide.
“We don’t want it to shut down,” Trump stated at the White House just before the midnight deadline. However, he appeared unable to negotiate a deal between Democrats and Republicans to avert the standoff.
This is the third time Trump has overseen a federal funding lapse, emphasizing the persistent divide over budget priorities and the current political climate.
Plenty of Blame Being Thrown Around
The Democrats picked this fight, which was unusual for the party, reflecting their voters' eagerness to challenge Trump’s second-term agenda. They demand funding for health care subsidies that are expiring for millions under the Affordable Care Act.
Republicans, on the other hand, have refused to negotiate so far, opting to encourage Trump to remain uninvolved in talks. The political climate is charged, and neither side has proposed a viable solution to prevent a drawn-out closure.
“What the government spends money on is a demonstration of our country’s priorities,” noted Rachel Snyderman, a former White House budget official. Shutdowns, she remarked, “only inflict economic cost, fear and confusion across the country.”
Economic Fallout Expected to Ripple Nationwide
An economic impact could surface soon, particularly with an impending monthly jobs report. Although financial markets typically endure shutdowns without much reaction, Goldman Sachs indicates that this one could differ due to a lack of negotiations.
Trump’s Office of Management and Budget has implemented plans for not just furloughs but also mass firings of federal workers as part of a broader strategy to reduce government size.
What’s Staying Open and Shutting Down
The Medicare and Medicaid programs appear set to continue, though staffing issues could lead to service delays. The Pentagon remains operational, and most employees at the Department of Homeland Security will remain on duty.
However, Trump has warned of focusing cuts on programs important to Democrats, leading to potentially widespread implications.
As agencies decide worker classification, some Smithsonian museums may remain open temporarily. Yet, former national park managers have urged the administration to close parks to visitors, citing safety concerns.
No Easy Exit as Health Care Costs Soar
Ahead of the new fiscal year, House Republicans had cleared a temporary funding bill despite opposition from Democrats, but it repeatedly failed in the Senate due to requirements for bipartisan support. Even attempts by Democrats to propose solutions have been unsuccessful.
Most political analysts view the current impasse as a significant test for Senate Democratic leader Chuck Schumer, who faces pressure from a base advocating assertiveness in health care funding negotiations.
As a historical comparison, during Trump’s first term, the U.S. experienced a 35-day shutdown over funding for the border wall. Previous shutdowns also reflect a long history of budget conflicts.
