The U.S. government shut down just after midnight Wednesday after lawmakers failed to agree on temporary funding legislation, leaving hundreds of thousands of federal employees facing furloughs.
Talks collapsed as Republicans and Democrats stood firm on opposing demands. Democrats insisted on extending enhanced Affordable Care Act tax credits as part of any short-term spending bill, while Republicans pushed for a “clean” resolution without health care provisions.
Office of Management and Budget Director Russell Vought directed federal agencies Tuesday night to begin implementing shutdown procedures. The Congressional Budget Office estimated about 750,000 federal employees could be furloughed, costing roughly $400 million per day in lost compensation.
“It’s a sad day for our nation,” Sen. John Fetterman, D-Pa., said after breaking ranks to back a Republican-led stopgap plan. “I won’t vote for the chaos of shuttering our government. My vote was for our country over my party.”
Business leaders expressed alarm over the gridlock. “Funding the government is an essential responsibility of Congress,” said Business Roundtable CEO Joshua Bolten. “A government shutdown would create uncertainty, disrupt critical services and harm American businesses, workers and families.”
House Speaker Mike Johnson, R-La., blamed Democrats for blocking a resolution. “They need to come to their senses here, and do the right thing,” he said in an interview. Johnson accused Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries of holding out to protect party interests.
Republicans also rejected Democrats’ claims that ACA subsidies were necessary, with Senate Minority Whip John Thune calling the debate “a made-up problem by the Democrats.”
Jeffries countered that Republicans are at fault. “If the government shuts down, it’s their decision to do it,” he said on CNBC. “We are ready and willing and able to find a bipartisan way forward.”
Democrats warned the lapse in funding could trigger higher health insurance premiums for millions if ACA subsidies are not extended. Jeffries dismissed Republican accusations that Democrats want to fund coverage for undocumented immigrants, calling the claim “an outright lie.”
“Federal law prohibits the use of taxpayer dollars to provide medical coverage to undocumented individuals,” Jeffries said. “There is nothing in anything we have proposed that changes that.”
The shutdown comes as both parties brace for public fallout, with no immediate path forward to reopen the government.
Related Readings:
