The US federal government officially entered a shutdown after and failed again to pass competing in the Senate, deepening the partisan standoff over federal spending and health care.
Funding plans blocked, shutdown triggered
On a 55-45 vote, the GOP proposal to extend funding until November 21 fell short of the 60 votes needed to overcome a filibuster, effectively guaranteeing a shutdown from 12:01 am (local time) on Wednesday.
Republicans also blocked the Democrats’ version, which sought to extend funding until the end of October while adding over $1 trillion in health care spending, including maintaining Affordable Care Act subsidies and reversing recent Medicaid cuts.
The Office of Management and Budget (OMB) issued a memo confirming that current federal funding levels “expire at 11:59 pm tonight”, effectively triggering a shutdown.
The memo said the GOP-led continuing resolution (CR), which would have extended funding through November 21, was blocked by Democrats due to what the White House called “insane policy demands,” including $1 trillion in new spending.
Also read: US govt heads for first shutdown in 7 years: Why stakes are higher this time - 10 FAQs answered“But it is now clear that Democrats will prevent passage of this clean CR prior to 11:59 pm tonight and force a government shutdown. As such, affected agencies should now execute their plans for an orderly shutdown,” the memo said.
A few members of the Democratic caucus, including Senators Catherine Cortez Masto, John Fetterman, and Angus King, broke ranks and supported the Republican funding bill, while Republican Senator Rand Paul opposed his party’s measure, highlighting fractures on both sides.
Democrats have framed their resistance as a strategic fight to prevent cuts to health care that could hit millions of Americans and to push back against Trump’s administration, unlike earlier standoffs when they had allowed temporary stopgap funding.
Shutdown procedures and employee impact
As per Fox News, Federal employees were instructed to report for scheduled duty to implement shutdown procedures, while a follow-up memo will be issued if a spending bill is passed, signalling the resumption of full operations once funding is restored.
The OMB also instructed federal agencies to begin implementing shutdown plans following the failed votes, according to news agency AP.
Agencies were warned that non-essential workers could face permanent layoffs, not just furloughs, in a “reduction in force,” with some departments posting warnings on their websites, including a HUD notice blaming Democrats for the shutdown.
Also read: From banks to courts- What stays open and what closes if Senate fails to pass funding billsHundreds of thousands of federal workers face furloughs or layoffs, with the Congressional Budget Office estimating that around 750,000 employees could be affected each day once a shutdown begins.
If health care tax credits lapse, about 4 million people could lose coverage next year, while 20 million more could see higher insurance costs. By 2034, the CBO projects an additional 10 million Americans could become uninsured due to cuts in the GOP tax law, heightening the stakes of the impasse.
Political accusations fly across parties
Senate majority leader John Thune accused Democrats of forcing a showdown. “The Democrats' far-left base and far-left senators have demanded a showdown with the president,” he said, warning that Americans would bear the consequences, as per the New York Times.
Democrats, however, insisted their demands—including extending Affordable Care Act subsidies and reversing Medicaid cuts—were essential to prevent a health care crisis.
Senate minority leader Chuck Schumer warned, “If the president were smart, he'd move heaven and earth to fix this health care crisis right away, because Americans are going to hold him responsible when they start paying $400, $500, $600 a month more on their health insurance.”
Also read: Federal agencies send emails blaming Democrats; cite 'unrelated policy demands'Trump embraces shutdown as a political tool
President Trump appeared to welcome the prospect of a shutdown. He threatened to use it to “cut vast numbers of people out, cutting things that they like, cutting programs that they like,” later adding that “a lot of good can come down from shutdowns”, suggesting layoffs could target programs favoured by Democrats.
He also perpetuated unfounded claims that Democrats were shutting down the government to provide health care to immigrants lacking legal status, echoing debunked conspiracy theories.
Earlier, tensions further escalated when Trump posted an AI-generated video mocking Democratic leaders with distorted voices and caricatures, including a cartoon sombrero on House Democratic Leader Hakeem Jeffries.
Jeffries responded by sharing a photo of Trump with Jeffrey Epstein, captioned, “This is real.”
With both sides entrenched, the stalemate left little hope for a resolution before the deadline, setting the stage for the first government shutdown in nearly seven years.