Trump, Democrats fail to reach budget deal

(MENAFN) The U.S. government came to a standstill early Wednesday after negotiations between President Donald Trump and congressional Democrats to fund federal operations failed to produce an agreement, according to reports.

Negotiators had until midnight Tuesday to finalize a deal, but key differences remained unresolved. Democrats sought to include health care provisions in any funding legislation, including partially reversing Trump’s tax law that cut Medicaid funding and extending subsidies under the Affordable Care Act.

Republicans, however, pushed for a “clean” continuing resolution that would maintain current spending levels without any policy changes.

The House of Representatives passed a bill on September 19 that would have funded the government at existing levels through November 21, but the measure stalled in the Senate, where Republicans do not hold the 60 votes needed to advance the legislation.

Trump previously oversaw the longest government shutdown in U.S. history, which lasted 35 days from late 2018 into 2019. While a shutdown does not automatically trigger a full economic crisis, it disrupts many aspects of daily life.

Federal employees may face furloughs or be required to work without pay, and mandatory leave will be imposed for others until a new budget is approved. Each agency has its own shutdown plan, determining which employees are considered essential.

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