U.S. Shutdown Enters Second Week as White House Signals Layoffs, Senate Faces Likely Failed Vote
Democratic demands for permanent ACA tax credits remain the central obstacle.
Overview
- The White House says permanent federal employee firings have begun and could expand if negotiations go nowhere.
- The Senate scheduled a fifth round of votes today on rival funding plans, with neither expected to reach the 60 votes required; Republicans still lack the eight Democratic votes they need.
- Democrats are insisting on a permanent extension of Affordable Care Act tax credits, while Republicans are pushing a short-term funding bill through late November.
- OMB Director Russ Vought has frozen at least $28 billion in infrastructure funds in New York, California and Illinois, heightening pressure on Democratic-led states.
- More than two million federal workers will go unpaid until Congress passes funding, and Treasury Secretary Scott Bessent warned of potential hits to GDP and growth if the closure persists.