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U.S. Government Shutdown Persists as White House Signals Agency Cuts

The standoff centers on Democrats' demand to extend ACA subsidies, with Republicans refusing to include the health measures in a stopgap.

Overview

  • Talks remain stalled after a Senate stopgap drew 55 votes, short of the 60 needed, and no new votes are expected until the weekend, according to congressional schedules reported Thursday.
  • The Office of Management and Budget ordered an orderly shutdown, agencies began furloughs and curtailments affecting an estimated 750,000 federal employees, and analysts estimate economic losses near $400 million per day.
  • Key government data releases are paused, including the U.S. jobs report, and Chicago Fed President Austan Goolsbee warned the missing figures could complicate monetary policy decisions.
  • President Trump said he will use the pause to cut or eliminate agencies, and budget director Russell Vought moved to suspend funding for a major New York transport project and about $8 billion in climate initiatives, drawing rebukes from governors Kathy Hochul and Gavin Newsom.
  • Operational impacts are widening as the FAA sends roughly 11,000 employees home and keeps about 13,000 air-traffic controllers working unpaid, DHS continues core functions with reduced staffing, and parks and museums face partial closures or limited services.