The U.S. federal government entered its first shutdown in nearly seven years on Wednesday after the Senate failed to pass a short-term spending bill. The deadlock centers on healthcare funding, with Democrats and Republicans clashing over support for undocumented immigrants.
Both parties rejected each other's proposals during back-to-back votes, mirroring Tuesday's impasse. Democrats argue their plan prioritizes healthcare protections for Americans, while Republicans accuse opponents of pushing benefits for undocumented individuals. U.S. Vice President JD Vance claimed Democrats were 'holding the economy hostage' to reinstate such benefits, while Senate Minority Leader Chuck Schumer countered that Republicans 'can't be bothered to protect healthcare for Americans.'
This shutdown follows a record 35-day closure in 2019 under former President Trump. Services ranging from national parks to permit processing face suspension, impacting millions. The White House warns of potential mass layoffs if the stalemate continues, with Press Secretary Karoline Leavitt stating cuts could occur 'very soon.'
Analysts note shutdowns have become a recurring feature of Washington's political gridlock, though this instance unfolds amid heightened tensions over proposed budget cuts to federal agencies. The economic ripple effects could influence global markets, particularly in Asia, where trade and investment ties remain closely linked to U.S. stability.
