US government shutdown looms: ‘A lot’ of federal workers could be laid off

WITH a midnight deadline looming, the United States faces its first government shutdown in nearly seven years as Democrats and Republicans remain locked in a standoff over federal spending and health care.

President Donald Trump warned that many federal workers could be laid off if a funding agreement is not reached. “We may do a lot and that’s only because of the Democrats,” Trump said, pointing to Democratic resistance as the reason for potential terminations.

The White House last week instructed federal agencies to prepare contingency plans for mass firings in the event of a shutdown, though no agency has officially called for layoffs so far.

Impasse over funding and health care

The impasse stems largely from Democrats’ demand to extend Affordable Care Act tax credits, which subsidise health insurance for millions and are set to expire at the end of the year. Republicans, led by Trump, insist on a “clean” funding bill without concessions.

“Democrats are fighting to protect the health care of the American people,” House Democratic leader Hakeem Jeffries said. “We are not going to support a partisan Republican spending bill that continues to gut the health care of everyday Americans.”

Senate Majority Leader John Thune, meanwhile, pushed Democrats to vote for the funding bill and defer health care debates. “We’re willing to sit down and work with them on some of the issues they want to talk about,” Thune said. “But as of right now, this is a hijacking of the American people, and it’s the American people who are going to pay the price.”

Negotiations stall at White House

Congressional leaders held a last-minute meeting with Trump on Monday, including Senate Democratic leader Chuck Schumer, Senate Majority Leader John Thune, House Speaker Mike Johnson, and House Democratic leader Hakeem Jeffries.

“There are still large differences between us,” Schumer said following the meeting. “It’s in his hands,” he added, noting that the President listened to Democratic proposals.

Vice President JD Vance blamed Democrats for the standoff. “I think we’re headed into a shutdown because the Democrats won’t do the right thing,” he told reporters.

With a 53–47 Republican majority, the Senate needs at least 60 votes to pass a funding bill and avoid a shutdown. Republican Sen. Rand Paul has indicated he will vote against the legislation, meaning at least eight Democrats would need to cross the aisle for the bill to pass.

During the last shutdown scare in March, Schumer and nine other Democrats broke a filibuster to allow a Republican-led funding bill to advance, a decision that drew backlash from the party base.