US gov't Shuts Down After Senate Rejects Funding Plans

The U.S. federal government entered a shutdown at the start of Wednesday, a few hours after the U.S. Senate failed to pass a short-term spending bill on Tuesday night.

This marks the first government shutdown in nearly seven years. The last and also the longest federal government shutdown occurred from late 2018 to early 2019 during Trump’s first term.

Democrats opposed Trump’s proposed funding for the U.S.-Mexico border wall, and the two parties’ disputes over immigration led to a 35-day shutdown, during which some 800,000 federal employees were forced to work without pay or take unpaid leave.

Hundreds of thousands of federal employees will be forced to take unpaid leave this time too, with some public services potentially suspended or delayed, and the release of economic data possibly impacted as well.

Senate Democrats on Tuesday evening blocked a continuing resolution proposed by Republicans to temporarily keep the government running. The measure didn’t gain enough support, falling short of the 60 votes required for passage.

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In the latest negotiations, healthcare benefits have been one of the core sticking points between the two parties.

Democrats are demanding stronger healthcare-related benefits, including an extension of the enhanced subsidies for Affordable Care Act set to expire at the end of the year, as well as restoring the act’s coverage eligibility for certain immigrants who are legally present, including refugees and asylum seekers.

Republicans, on the other hand, opposed these measures and have been pushing to temporarily maintain current government funding levels to allow more time for negotiations.

Earlier in the day, Republicans and Democrats continued to trade blame, accusing each other of forcing the government into a “shutdown.”

The operating funds for the U.S. federal government are supposed to come from annual budget appropriations.

Congress from both parties is normally expected to pass new annual appropriations bills before the start of the new fiscal year on October 1. However, in recent years, intense partisan battles have often prevented timely agreement.

According to U.S. media reports, the Senate Republicans are planning to hold another vote on the bill on Wednesday.