TL/DR –
The U.S. government shutdown has entered its second week after the Senate again rejected rival bills to restart funding. The stalemate centers around healthcare subsidies, with Democrats refusing to back any bill that does not include concessions such as an extension of premium tax credits for people covered by the Affordable Care Act. President Donald Trump indicated he may be open to negotiating on these subsidies, while the Trump administration warned it is prepared to slash the federal workforce if the shutdown continues.
US Government Shutdown Continues Amidst Healthcare Subsidies Stalemate
As the US government shutdown enters its second week, Senate discarded proposals from both sides to resume funding, while President Donald Trump showed interest in discussions on healthcare subsidies, a vital issue for Democrats. The Republican-written bill to reboot the government failed its fifth Senate vote, falling short of the 60-vote threshold. Meanwhile, the Democrats’ proposal was also defeated.
A lack of congressional legislation approval to continue government spending led to many departments and agencies closing last week. The Trump administration warned of plans to reduce the federal workforce. Minority Leader of the Senate, Chuck Schumer, emphasized the need for a bipartisan agreement to address the healthcare crisis after five unsuccessful votes.
Democrats insist on backing bills incorporating a range of healthcare concessions, including an extension of premium tax credits for those insured under Affordable Care Act (ACA) health insurance. However, Republican leaders have refused to negotiate until government funding is restored.
Trump hinted at a potential agreement with Democrats on ACA subsidies, while also claiming billions are being wasted. “We have a negotiation going on right now with the Democrats that could lead to very good things,” Trump stated. Despite Trump’s claims, Schumer denied any outreach from the president.
According to White House Press Secretary, Karoline Leavitt, if the shutdown continues, a food program for low-income mothers and children and government employees’ paychecks could be at risk. Federal law, however, guarantees back pay for these workers. Additionally, she reiterated threats to terminate federal workers.
Russ Vought, Director of the White House Office of Management and Budget, has cancelled funding for several energy and transportation projects. Despite this, suggested cuts to the federal workforce have largely not yet occurred. “We’ll see how the vote goes tonight,” Leavitt said regarding possible layoffs.
Both Democrats and Republicans show no signs of softening their stances since the shutdown began. Democrats remain firm on their demand for an extension of ACA tax credits in any government funding legislation. The credits, created under Joe Biden, are set to expire soon, and costs for 20 million enrollees will rise if not extended.
The Democratic funding bill also includes a reversal of Republican cuts to Medicaid, restoration of funding for public media outlets, and a prohibition on Trump’s ability to undo congressional appropriations. Despite this, Republican majority leader John Thune has pledged to continue holding votes on the parties’ bills.
According to recent polls, Democrats hold a slight edge in public opinion regarding the shutdown. House Speaker Mike Johnson stated he won’t call a House session until government funding is restored. Newly elected Democratic representative Adelita Grijalva will be sworn in once the House returns to work.
Grijalva is set to be the 218th lawmaker to sign a petition to force a vote on releasing files related to Jeffrey Epstein. Critics accuse Johnson of keeping the House out of session to delay this vote.
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