Tuesday, 02 January 2024 12:17 GMT

Countdown Begins! US Government Inches Closer To Shutdown As Trump, Democrats Fail To Reach Deal


(MENAFN- Live Mint) With only hours remaining before the midnight deadline, the lack of agreement on spending could lead to the US government shutdown, which will halt numerous government services and delaying pay for federal employees as Democrats and Republicans remain deadlocked over a funding plan, with both sides pointing fingers for the ongoing stalemate.

While last-minute funding agreements have prevented several potential shutdowns in recent years, the current situation carries particularly high stakes. The White House has warned it may fire employees instead of placing them on furlough, and Democratic leaders are facing mounting pressure from the party's progressive wing to take a firm stand against President Donald Trump , according to Bloomberg.

House Speaker Mike Johnson, a Republican from Louisiana, informed Fox News on Monday,“They wouldn't back off on any of these crazy demands."

Also Read | US govt shutdown to furlough 41% of health agency workers - who gets impacted?

Democratic leaders slammed Republicans for dodging repeated requests for bipartisan negotiation. Senate Minority Leader Chuck Schumer stated,“Their bill has not one iota of Democratic input. It's up to the Republicans whether they want a shutdown or not.”

Despite the possibility of a brief government shutdown, Republican lawmakers remained confident that Democrats would ultimately relent.

Senator Lindsey Graham, a Republican from South Carolina mentioned,“A 600-pound man is more likely to pass up a donut than the Democrats are to shut down the government for any length of time, because they love the government as much as a 600-pound man loves a donut."

Graham anticipated only a“brief” shutdown as both parties work toward a compromise. He pointed out that Republicans have previously attempted to use shutdowns to extract policy concessions, but ultimately ended up funding the government without achieving their goals.

Also Read | Government shutdown: What stays open, what shuts down

“It may be popular, but shutting the government down is not the answer to popular legislation. I've learned that the hard way," he added.

Trump, in a conversation with Politico, said that he didn't think the country would hold him responsible if the government shuts down“because people that are smart see what's happening. The Democrats are deranged.”

What happens in a US government shutdown?

When funding lapses, federal law mandates that agencies stop operations and place“non-excepted” employees on furlough. Those considered excepted, typically workers involved in protecting life and property, must continue working without pay until the shutdown is over.

During the 35-day partial government shutdown in Trump's first term, out of 800,000 federal employees affected, 340,000 were furloughed while the rest, classified as“excepted", were required to keep working, as per AP.

(With inputs from agencies)

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