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U.S. Government Shuts Down After Senate Rejects Dueling Funding Bills

Democrats refused a short‑term bill to force action on Affordable Care Act subsidies, with a demand to reverse Medicaid cuts.

Overview

  • OMB Director Russell Vought ordered agencies to execute shutdown plans after both a Republican stopgap and a Democratic alternative failed to clear the Senate’s 60‑vote threshold.
  • The Congressional Budget Office estimates roughly 750,000 federal employees could be furloughed daily, while designated essential personnel must work without pay until funding resumes.
  • President Donald Trump warned of irreversible actions during the shutdown, including mass layoffs, as reporting indicated agencies were told to prepare potential reduction‑in‑force notices.
  • Core benefits such as Social Security, Medicare, Medicaid and VA payments are expected to continue with possible delays, while many discretionary services pause and national parks and museums face limited operations.
  • Travel risks could build if the stoppage lingers, with TSA screeners and air traffic controllers working unpaid and industry groups warning of longer lines, flight disruptions and up to $1 billion in weekly economic losses.