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U.S. Government Shutdown Nears as Trump Won’t Compromise and Agencies Ready Layoff Plans

Senate rules require 60 votes, giving Democrats leverage as they seek to extend enhanced Obamacare tax credits.

Overview

  • Congress has four days to pass a stopgap after failing to approve any of the 12 full-year spending bills, with the House passing a GOP plan that the Senate rejected alongside a Democratic alternative.
  • President Donald Trump canceled a meeting with Democratic leaders and signaled no compromise, locking in a standoff over a Republican push for a clean funding extension versus Democrats’ health-care demands.
  • The Office of Management and Budget directed agencies to prepare mass layoff plans tied to programs losing discretionary funding on Oct. 1 if a shutdown occurs.
  • A funding lapse would furlough many non-essential federal workers and require others to work without pay, with national parks and some inspections curtailed, while Social Security benefits, VA medical care and Postal Service operations continue.
  • Key economic data could be delayed, including the Oct. 3 jobs report and the Sept. consumer price index slated for Oct. 15, echoing delays seen in past shutdowns.