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U.S. Government Enters Shutdown After Funding Talks Collapse

A budget standoff over health‑care cuts versus tax priorities has halted funding, triggering furloughs.

Overview

  • The White House Office of Management and Budget ordered agencies to execute shutdown plans, with Director Russell Vought signing the directive just before midnight.
  • Roughly 750,000 to 800,000 federal employees face furloughs while essential personnel, including military and air traffic control, continue working without pay as parks and museums close.
  • Senate efforts to pass short‑term funding failed after cross‑vetoes on dueling proposals that require 60 votes, and additional votes offered Wednesday produced no breakthrough.
  • Democrats are pressing to extend Obamacare premium credits and reverse Medicaid cuts, while Republicans back preserving tax cuts and a short‑term “clean CR” to keep spending at current levels.
  • The White House has directed agencies to prepare mass layoff plans and has frozen selected funds, including $18 billion for New York infrastructure, while economists warn of delayed BLS data, a weekly GDP drag near 0.1 percentage point, and a flight to gold.