Tuesday, 02 January 2024 12:17 GMT

US Government Shutdown Countdown: 5 Key Factors Driving The Odds As Deadline Looms


(MENAFN- Live Mint) With the clock ticking toward a midnight Wednesday deadline, the odds of the first US government shutdown in nearly seven years are growing . A partisan clash over health care and spending has hardened, leaving little room for compromise.

Democrats are demanding an extension of Affordable Care Act subsidies that expire at year's end, while President Donald Trump and Republicans insist on passing a“clean” funding bill without concessions.

“It's now in the president's hands,” said Senate Democratic leader Chuck Schumer , warning that the shutdown is increasingly likely unless Trump changes course.

Factor 1: Health care standoff

At the heart of the deadlock is the fight over Affordable Care Act tax credits that subsidize health insurance for millions of Americans. Democrats argue the credits are vital to prevent skyrocketing premiums, while Republicans want to defer the issue.

“We are not going to support a partisan Republican spending bill that continues to gut the health care of everyday Americans,” House Democratic leader Hakeem Jeffries said.

Even Senate Majority Leader John Thune acknowledged some GOP members are open to extending subsidies but insisted Democrats are“hijacking the American people” by tying it to government funding.

Factor 2: Political Posturing and Base Pressure

For Democrats, yielding without a health care deal risks backlash from their base. Party activists have long urged leaders to stand firm against Trump. Some groups even demanded Schumer's resignation earlier this year after he helped avert a shutdown.

Republicans, meanwhile, believe voters will blame Democrats if the government closes. Vice President JD Vance bluntly predicted:“I think we're headed into a shutdown, because the Democrats won't do the right thing.”

Factor 3: Trump's resistance to compromise

Democrats and Republicans remain deadlocked over funding, each side trading blame for the impasse. Washington prepared for a looming government shutdown on Tuesday, with Republicans and Democrats still far from a deal to keep funding in place beyond the midnight deadline. And, Trump has shown little interest in cutting a deal. Before Monday's White House meeting with congressional leaders, he dismissed Democrats' demands outright:“Their ideas are not very good ones.”

Hours later, instead of signaling flexibility, Trump inflamed tensions by posting a doctored video mocking Schumer and Jeffries. Jeffries responded:“Bigotry will get you nowhere. We are NOT backing down.”

The episode underscored Trump's combative approach, raising doubts about his willingness to strike a last-minute bargain.

Factor 4: Senate math against a quick fix

Republicans hold a 53–47 Senate majority but need 60 votes to overcome a Democratic filibuster. That means at least eight Democrats would have to cross the aisle. With GOP Sen. Rand Paul vowing to vote“no,” the margin for error is even smaller.

Democrats see this as rare leverage in a chamber tilted against them. As Sen. Gary Peters (D-Mich.) noted,“A lot can happen in this place in a short period of time” - but the math leaves little incentive for Democrats to retreat early.

Also Read | US government inches closer to shutdown as Trump, Democrats fail to reach deal Factor 5: Shutdown preparations already underway

Federal agencies have begun rolling out contingency plans , sending notices to employees about potential furloughs and service cuts. The White House budget office has warned of“broad layoffs across the government” if funding lapses.

Trump's budget director Russ Vought argued the standoff is avoidable - but blamed Democrats:“This is hostage-taking. It is not something that we are going to accept.”

Rising odds of a shutdown

The combination of entrenched partisan positions, looming health care stakes, Trump's unwillingness to bargain, and tough Senate math has pushed Washington closer to a funding lapse.

Also Read | When was the last US government shutdown? Look back at the events of 2018-19

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