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U.S. Government Hours From Funding Lapse After White House Talks Fail

Talks collapsed over Democratic demands for Medicaid protections opposed by the White House.

Overview

  • The Republican House passed a temporary funding bill, but it failed in the Senate, which requires 60 votes and thus some Democratic support.
  • The Office of Management and Budget told agencies to prepare for personnel impacts and to consider separation notices if funding lapses.
  • Vice President J.D. Vance said he expects a shutdown and blamed Democrats, while President Trump posted an AI-altered video mocking Democratic leaders.
  • If no deal is reached, many agencies will curtail operations, hundreds of thousands of workers could be furloughed or unpaid, and services from national parks to aviation may be disrupted.
  • A lapse could halt the release of key economic data used by the Federal Reserve, adding uncertainty as the midnight Tuesday deadline approaches.