Overview

• High-level talks with President Trump, Vice President JD Vance, and congressional leaders ended without progress, with Vance saying the country is heading toward a shutdown and Democrats citing very large differences.
• The Republican-led House approved a short-term funding bill, but the plan stalled in the Senate, where 60 votes are required and Republican leaders lack enough Democratic support.
• Health care is the central dispute, as Democrats demand extending enhanced Affordable Care Act subsidies and reversing recent Medicaid cuts; Trump and GOP leaders dismissed the demands as unacceptable.
• The White House budget office directed agencies to prepare furlough or dismissal letters, signaling concrete contingency steps as the deadline approaches.
• A lapse would pause many federal services, furlough or delay pay for large numbers of employees, disrupt national parks and some court operations, strain air travel, and halt key economic data releases.