U.S. Government on Brink of Shutdown
(MENAFN) The United States government is on the brink of a shutdown just one day before the start of the 2026 fiscal year, as lawmakers remain unable to strike a deal over the national budget. With the fiscal year 2025 set to conclude at midnight on Wednesday, Congress has yet to reach a consensus on funding.
On September 19, the House of Representatives passed a budget bill that would extend federal funding until November 21, but the Senate has refused to approve the Republican-backed measure. Tensions between the two parties remain high as both sides fail to reconcile their differences.
Republicans and Democrats are locked in a standoff over key issues, including health insurance subsidies and Medicaid cuts. Democrats are pushing for an extension of health insurance subsidies and the reversal of Medicaid reductions, but they have firmly rejected the Republican proposal, arguing that it would make healthcare access more difficult. Republicans, however, are steadfast in their position and have shown no willingness to yield.
After a meeting with Democratic leaders on Monday, Vice President JD Vance stated that the US is “headed to a shutdown,” accusing Democrats of refusing to meet halfway. “The US is headed to a shutdown,” he said, laying blame squarely on the Democratic side.
Meanwhile, Senate Democratic Leader Chuck Schumer placed the responsibility for the shutdown squarely on the Republicans. "Whether a shutdown happens depends on the Republicans," Schumer stated.
Despite Republican control of both chambers of Congress, their inability to secure the 60 votes required to pass the budget bill in the Senate leaves them in a precarious position. If an agreement is not reached, the US government could face its first shutdown since 2019.
In the event of a shutdown, temporary budgets are meant to bridge the gap. However, if Congress fails to approve these interim measures, federal agencies would lose their spending authority and be forced to suspend many of their operations.
Though not an immediate threat to the overall economy, a government shutdown would trigger widespread disruptions across various sectors dependent on federal funding. Federal workers will face delayed payments and potential mandatory leave until a new budget is passed. Each federal agency is preparing its own shutdown protocol to determine which activities can continue under the uncertain circumstances.
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