TL/DR –
The U.S. government shutdown is causing varying levels of access to federal services and has resulted in federal workers staying home. The White House and congressional leaders are blaming each other for the impasse, with Vice President JD Vance threatening federal layoffs if the shutdown continues and the Office of Management and Budget announcing the cancellation of certain infrastructure projects. Meanwhile, a small group of Senators from both parties have begun informal talks to find a way forward, while federal employees’ unions have begun legal action against possible layoffs.
Government Shutdown Ripple Effects Across Nation
Yesterday, consequences of a government shutdown were experienced across the country, with federal workers staying home, national parks bracing for closure, and varied access to federal government services. With the White House and Congressional leaders standing their ground, Senate Democrats continue to advocate for an extension of soon-to-expire Affordable Care Act subsidies.
Meanwhile, Vice President JD Vance has announced potential federal workforce layoffs if the shutdown continues, straying from previous practices of temporary furloughs. Additionally, Russ Vought, the director of the Office of Management and Budget, has declared a halt or postponement on infrastructure and green energy projects not aligned with the administration’s policy goals – majorly in states that backed former Vice President Kamala Harris.
White House Blames Democrats, Partisan Standoff Continues
The White House persists in blaming Democrats for the shutdown, accusing them of advocating for health care to undocumented immigrants. This perspective, however, doesn’t accurately reflect Democrats’ demands. They seek to reverse the Medicaid cuts included in the Republicans’ One Big Beautiful Bill, a provision that penalizes states providing health coverage to undocumented immigrants.
A Potential Compromise on the Horizon?
Despite staunch positions by party leaders, some Republican and Democratic senators have begun informal discussions about potential solutions. However, it remains uncertain whether a compromise reached amongst this group could progress in the Republican-dominated House. In essence, Republicans propose income caps on subsidies and eligibility limitations, while Democrats aim to maintain the credits for as many working and middle-class citizens as possible.
No votes are planned for Thursday due to the Jewish holiday, but Senate GOP leaders are expected to call for another vote on the House-passed stopgap bill on Friday. The House is out of session until October 7.
Federal employees’ unions are suing over the Office of Management and Budget memo preparing agencies for layoffs during a shutdown.
Contributors to this report include NPR’s Elena Moore and Tamara Keith.
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