The federal government partially shut down early Wednesday after Democrats and Republicans failed to reach an agreement on a funding package.
In the lead-up to the midnight deadline to pass a budget package, President Donald Trump warned the administration could make "irreversible" changes to the federal workforce, most notably through a new wave of fresh layoffs. The president has underscored that he and his allies did not want the government to shut down, but that it opened the door for some "good" that could come from it.
Senate lawmakers failed to reach a spending agreement in time for the end of fiscal year 2025 Tuesday, after a short-term extension of fiscal year 2025 funding, aimed at keeping the government open through Nov. 21, passed the House mainly along party lines earlier in September.
Democrats expressed frustration at being shut out of spending negotiations and over the GOP bill’s exclusion of enhanced Obamacare subsidies that were first enacted in 2021 under President Joe Biden. Those subsidies, a COVID-19-era measure, are set to lapse at the end of 2025 unless Congress takes action, Fox News Digital has reported.
Republicans have since pinned the shutdown blame on Democrats, arguing they refused to fund the budget as an attempt to reinstate taxpayer-funded medical benefits for illegal immigrants through Democrat lawmakers' continuing resolution, which would include extending the expiring Obamacare tax credits.
