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Senate Stalemate Extends U.S. Government Shutdown Into Next Week

A fight over pandemic-era health subsidies is driving a shutdown the White House is leveraging with targeted funding freezes.

Overview

  • Senate efforts to advance competing short‑term funding plans failed on Friday, leaving no path to reopen the government before next week.
  • President Trump’s budget office froze $2.1 billion for Chicago transit and has halted at least $28 billion reported for Democratic-led jurisdictions, with Russ Vought citing concerns over race-based contracting.
  • The Bureau of Labor Statistics and Bureau of Economic Analysis have paused scheduled releases, including Friday’s jobs report, clouding market and policy decisions ahead of the late‑October Federal Reserve meeting.
  • Payment has been halted for roughly 2 million federal employees by one estimate, while other reports cite about 750,000 without pay as agencies furlough workers and keep only essential operations running.
  • Republicans push a short stopgap without health-subsidy provisions while Democrats insist on reversing recent subsidy cuts, and Senate leaders signaled no weekend session after Friday’s failed vote.