Tuesday, 02 January 2024 12:17 GMT

Budget Dispute Triggers U.S. Government Shutdown


(MENAFN) The functions of the U.S. government came to a standstill early Wednesday after talks between President Donald Trump and congressional Democrats failed to result in a funding deal.

The negotiation window closed at midnight on Tuesday, but no consensus was achieved, with significant disagreements remaining unresolved.

Democratic lawmakers have pushed to incorporate healthcare-related changes into any budget legislation.

These changes include undoing elements of Trump's hallmark tax reform that led to reductions in Medicaid spending, as well as prolonging financial support under the Affordable Care Act, the U.S.'s semi-universal healthcare system.

Conversely, Republicans are insisting on a "clean" continuing resolution—one that would maintain current funding without introducing any policy changes.

On September 19, the House of Representatives approved a measure to maintain government funding at existing levels through November 21.

However, the proposal failed to progress in the Senate, where Republicans lack the necessary 60 votes to bypass procedural rules and advance the bill.

President Trump previously presided over the lengthiest government shutdown in U.S. history when funding expired in 2018, extending into 2019 for a total of 35 days.

Although a shutdown does not immediately cause a widespread economic collapse, it significantly disrupts various facets of daily life in the United States.

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