The federal government could shut down Wednesday morning if Congress doesn't reach a deal on funding legislation. Democrats and Republicans remain deadlocked over health care and spending issues, with both sides dug in on their positions.
The House passed a seven-week funding extension, but Senate Democrats want health care benefits included in any agreement. Democrats are upset over expiring Affordable Care Act subsidies and want the Trump administration to address those subsidies. Without action, Democrats say millions of Americans will face higher insurance premiums in the months and years ahead.
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Republicans have issues with those subsidies and the program itself, and are not prepared to make health care part of the current funding debate.
With the House of Representatives not even in Washington, any last-minute compromise would require members to fly back to avoid a shutdown. All indications point toward the first government shutdown in several years.
White House officials believe that a government shutdown is likely.
Senate Minority Leader Chuck Schumer responded to the impasse, calling it a "joke shutdown" while criticizing the Republican approach.
"Their bill has not one iota of Democratic input. That is never how we've done this before," Schumer said.
Thousands of federal workers could be furloughed or even laid off during a shutdown. The average length of government shutdowns dating back to the 1970s is eight days, though the last shutdown from 2018 to 2019 lasted 35 days.
Federal workers and military members will receive back pay once the government reopens, but there's no telling how long a shutdown might last. Some financial institutions are offering zero-interest loans for military members concerned about October paychecks.
Different government agencies will be affected differently during a shutdown. The IRS plans to use leftover funds from the Inflation Reduction Act to cover employee pay for at least the first few days. Other agencies will operate with skeleton crews, distinguishing between essential and non-essential workers.
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Some services will continue during a shutdown, including Social Security checks and Medicare and Medicaid administration. However, economic reports and data releases will be delayed, potentially frustrating economists and Wall Street.
National parks may close or limit services, affecting families with planned visits and reservations.
The Trump administration has threatened mass firings and furloughs, though it remains unclear whether this is a negotiating tactic or a serious threat that Democrats are calling his bluff on.
Republican leadership in the Senate is expected to bring up bills to avert a government shutdown one more time, while Democrats are expected to reject the Republican proposal and Republicans to reject the Democratic proposal.
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