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US hours from shutdown as parties trade blame over health care and spending

Democrats demand subsidy extension, Republicans press for ‘clean’ bill as 750,000 federal workers face furloughs.

   
October 1, 2025, 03:56
World
US hours from shutdown as parties trade blame over health care and spending

WASHINGTON (Realist English). With a government shutdown set to begin at 12:01 a.m. Wednesday, Democrats and Republicans remained deadlocked on Tuesday night, exchanging accusations and refusing to compromise on health care subsidies and spending priorities.

The standoff, if unresolved, would mark the first shutdown in almost seven years and could affect hundreds of thousands of federal employees. The Senate spent Tuesday evening debating a House-passed bill to extend government funding for seven weeks. A Democratic alternative that would also prolong Affordable Care Act tax credits was rejected earlier in the day.

Partisan confrontation

Senate Democratic leader Chuck Schumer accused Republicans of trying to “bully” Democrats into abandoning their demands. “It’s only the president who can do this. We know he runs the show here,” Schumer said, warning Republicans had “until midnight tonight to get serious.”

President Donald Trump and Senate Majority Leader John Thune insisted the House bill should be passed without changes. Thune said Republicans “are not going to be held hostage” by Democratic conditions. The Republican-controlled House, currently in recess, was not available to vote on any compromise even if the Senate produced one.

Trump escalated tensions by posting a mocking AI-altered video of Schumer and House Democratic leader Hakeem Jeffries, which Jeffries denounced as “racist and fake.” Trump also threatened “retribution,” warning a shutdown could mean “cutting vast numbers of people out, cutting programs they like.”

Healthcare at the centre

Democrats are pressing to extend health care subsidies, first enacted in 2021 during the pandemic, which expire at the end of December. They also demand reversal of Medicaid cuts enacted under Trump’s summer tax legislation and assurances that the White House will not rescind previously approved spending. “We are not going to support a partisan Republican spending bill that continues to gut the health care of everyday Americans,” Jeffries said.

Republicans, who hold a 53–47 majority in the Senate, likely need at least eight Democratic votes to reach the 60-vote threshold required to overcome a filibuster. Kentucky’s Rand Paul has already signalled he will vote against the bill. Thune said he hopes “reasonable Democrats” will break ranks to avoid a shutdown, promising ACA subsidies could be addressed later.

Uncertain prospects

A handful of Democrats remain undecided, holding out for concessions. Party activists, meanwhile, have pushed Schumer to resist, arguing Democrats must use their leverage to confront Trump. Schumer himself faced criticism earlier this year when he voted with Republicans to advance a funding bill, prompting some calls for his resignation.

The last US government shutdown, from December 2018 to January 2019, lasted 35 days as Trump demanded money for his border wall, ending only after nationwide airport delays and unpaid federal workers pressured the White House.

Impact on workers and economy

The White House has told agencies to prepare for a possible “reduction in force” if a shutdown occurs. The Congressional Budget Office estimated on Tuesday that about 750,000 federal employees could be furloughed each day. Many would lose pay, while some could face permanent layoffs.

Federal agencies had already begun preparations. On the homepage of the Department of Housing and Urban Development, a banner warned: “The Radical Left are going to shut down the government and inflict massive pain on the American people.”

Virginia senator Mark Warner noted that some federal workers in his state were urging Democrats to hold firm. “They’ve been on a slow, shutdown firing since the beginning of this administration,” he said. “They want us to push back.”

As midnight approaches, it remained unclear whether either side would yield — or whether the government would be forced into a shutdown with far-reaching political and economic consequences.

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