Trump asserts that Democrats are the only ones who can navigate the funding crisis caused by the government stalemate. As he steps away from the negotiations on Capitol Hill, both parties appear discouraged about making progress without serious discussions.
Senate Majority Leader John Thune (R-S.D.) announced on Friday that he intends to push Senate Democrats to vote on a seven-week funding resolution that the House has already passed. However, this measure has failed four times, making it unlikely that he will attract new support.
Thune is banking on getting eight Democrats to back the House bill, which could potentially give him the 60 votes needed to send it to Trump. But many think this is a long shot.
Senate Democratic Leader Chuck Schumer (D-N.Y.) believes that the responsibility to resolve the government shutdown falls squarely on Trump, rather than on Thune or Speaker Mike Johnson (R-La.).
“In the end, the president must be part of the solution. Johnson and several in his caucus aren’t enthusiastic about the ACA; that won’t suffice. Many Senate Republicans alone cannot carry this,” Schumer remarked.
On CBS’s “Face the Nation,” Johnson mentioned that the House has done its part, suggesting he would keep the Senate out of the fray for now. He has pushed back the House’s holiday schedule to October 14, signaling to Democrats that passing the House funding bill is crucial to ending the shutdown.
During a personal call to House Republicans on Saturday, leadership indicated they would give 48 hours’ notice should a return to Capitol Hill be necessary this week. Nonetheless, there are no signs they are shifting to a backup plan.
While Trump is distancing himself from direct talks with Democrats, he is ramping up external pressure by threatening significant layoffs of federal workers and accusing Democrats of intending to allocate vast federal healthcare funds to undocumented immigrants.
Kevin Hassett, director of the White House National Economic Council, warned during a CNN interview that widespread federal layoffs could happen if negotiations remain stagnant.
If the shutdown drags on past October 15, it’s possible Trump will have to push for negotiations with Democrats.
House Democratic Leader Hakeem Jeffries (NY) countered the accusations about spending on undocumented immigrants during an appearance on NBC’s “Meet the Press.” He emphasized that federal law forbids taxpayer dollars from going toward medical care for those individuals.
Experts have warned that a prolonged shutdown exceeding a month could wreak havoc on the economy. This is likely something Trump wishes to avoid, especially since a recent Reuters/Ipsos poll indicated only 36% of respondents viewed the economy positively.
Renowned economist Allen Sinai from Decision Economics, Inc. predicted that a lengthy shutdown could lead to a recession, noting that around a million workers might lose their jobs. “If this lasts two weeks to a month, I foresee a GDP growth forecast of about 1% for the fourth quarter. If it extends beyond Christmas, we’re looking at a potential negative GDP,” he commented.
Sinai stated that the current estimate for fourth-quarter GDP stands at 2.5% growth if the shutdown is resolved quickly.
Democrats feel they are gaining ground in the shutdown battle, especially after a Wall Street Journal report surfaced about a White House aide discussing enhanced ACA subsidies, hinting Republicans want to dodge blame for the program’s efficacy.
They perceive the shutdown as an opportunity to spotlight healthcare issues while resisting a clean, continuous resolution that wouldn’t expand these subsidies. “All we asked was to negotiate,” Senator Jackie Rosen (D-Nev.) noted, dismissing any agreement from Thune and Johnson to discuss subsidy extensions in the future.
Rosen pointed out that insurance companies have started notifying families about potential premium increases in 2026.
KFF, a nonpartisan health policy organization, released a survey of 1,334 adults across the nation recently.
Senate Republicans and Democratic sources indicate that Thune is reluctant to make significant concessions to Democrats without Trump’s endorsement of the funding deal.
They pointed out that Trump previously derailed bipartisan efforts Senate GOP leaders were making over stalled executive candidates this summer.
Democrats are advocating that any deal to reopen the government includes a continuation of the enhanced ACA subsidies, which are set to expire at the year’s end.
However, Thune acknowledged on Friday that he couldn’t agree to any terms that political leaders on the Democratic side would find acceptable.
“We can’t commit to anything regarding Covid grants because we can’t guarantee a vote on those,” Thune explained to reporters.
Senate Republicans are planning a deal that would allow eight Democratic votes on the House bills necessary to reopen the government this week. They pledged that if Democrats cooperate in passing the ongoing resolution, they would immediately negotiate relevant issues like agriculture and veterans’ affairs, as well as other Democratic priorities.
The GOP senator expressed optimism about the discussions, saying they were “very close” to an agreement to reopen the government. Yet Schumer promptly dismissed this framework as inadequate since it does not sufficiently address the necessity of the ACA grants.
