The deadline for funding the government is approaching, and so far, lawmakers haven’t taken steps to prevent a partial shutdown.
The Senate is set to reconvene in Washington, D.C. on Monday, and Congressional leaders will meet with President Donald Trump to discuss government funding. However, last week saw both sides more focused on blame than finding solutions.
Lawmakers must pass short-term funding extensions by late Wednesday night; otherwise, a government shutdown will occur. This would mark the third shutdown under Trump.
A government shutdown happens when Congress cannot agree on the 12 necessary budget bills or fails to pass continuing resolutions (CRs).
Schumer and Democrats face pressure to reconsider their position on the looming shutdown threat
Since 1980, there have been 10 government shutdowns, with only three since the beginning of the 2000s.
Every shutdown has its unique challenges, and this upcoming one may hit the federal workforce harder due to recent administration actions.
Essential programs like Medicare, Social Security, and Medicaid will still function, as will postal services and veterans’ clinics, but many federal employees will likely go unpaid, and several agencies may face service disruptions. For instance, the IRS and some management services may be impacted, resulting in delays in housing assistance and loans.
Shutdowns often categorize many federal workers as “non-essential.” Recently, the Office of Management and Budget released a memo about considering employee reduction notifications in programs without alternative funding sources.
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The memo stated that furlough notifications would be combined with these reduction notices, regardless of whether employees remain excluded from furloughs.
The financial implications of a shutdown are significant. While the specific costs of this impending partial closure are unclear, a past analysis from the Congressional Budget Office indicated that the last shutdown in 2019 delayed federal spending by about $18 billion, resulting in a dip in the gross domestic product (GDP). The report indicated that approximately $3 billion would not be recouped.
This previous shutdown significantly affected federal workers and private companies, with some businesses never recovering their lost earnings.
Currently, Republicans and Democrats in Congress seem stuck on their positions regarding funding bills. The government is expected to stay open until November 21, albeit with additional spending for lawmakers.
Democrats have suggested that at least any short-term funding extension should include an extension for Obamacare’s premium subsidies, warning that millions could face rising healthcare costs if no action is taken.
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This subsidy grant remains valid until the year’s end, but Democrats note that insurance companies plan to roll out new fees starting October 1.
Senate Republicans, led by Majority Leader John Thune, have stated discussions on subsidies could happen post-funding negotiations; however, that hasn’t appeased Schumer and other Senate Democrats.
“Nothing has really changed. The options remain: either vote for a straightforward, nonpartisan funding bill that puts Americans first or face a shutdown driven by political agendas,” Schumer pointed out.
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Both Thune and Schumer, alongside House Speaker Mike Johnson and House Minority Leader Hakeem Jeffries, are scheduled to meet on Monday afternoon, a meeting that comes on the heels of Trump canceling talks with Democratic leaders.
In a joint statement after a new meeting was set, Schumer and Jeffries emphasized that Democrats are willing to negotiate a bipartisan agreement to address what Americans need.
“We are committed to avoiding shutdowns and tackling the healthcare crisis raised by Republicans. Time is of the essence,” they said.
