US Government Shutdown Looms: Lawmakers Deadlocked on Spending Bill Amidst Budget Cuts

United States lawmakers remain at an impasse, failing to reach an agreement on a federal spending bill for a second consecutive day, pushing the government closer to a partial shutdown. Both Republican and Democratic proposals for stopgap funding were rejected in the Senate on Wednesday, mirroring similar failures earlier in the week that led to the current stalemate.

The Republican-backed bill, which sought to extend government funding until November 21, was voted down 55-45. Notably, two Democrats, John Fetterman and Catherine Cortez Masto, along with independent Angus King, crossed party lines to support the measure. Conversely, the Democrats’ bill, linking government funding to an additional $1.5 trillion in healthcare spending, failed with a 53-47 vote, facing unanimous Republican opposition.

Adding to the tensions, the administration has begun implementing budget cuts targeting Democratic-run states. The White House budget director announced a freeze of $26 billion in infrastructure funding, including $18 billion for New York City transport projects, citing concerns over “unconstitutional DEI principles.” An additional $8 billion earmarked for “Green New Scam funding” across 16 states, including California and Washington, has also been canceled.

Officials have further indicated that mass layoffs within the federal workforce are imminent due to the shutdown. The Vice President stated during a White House briefing, “We are going to have to lay people off. We’re gonna have to save money in some places so the essential services don’t get turned off in other places.”

Experts warn that the ongoing uncertainty is already negatively impacting the economy, leading to delayed investments, increased borrowing costs, and administrative burdens. With neither party showing signs of compromise, the shutdown’s effects are expected to deepen.

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