US Government Edges Toward Shutdown As Senate Rejects Stopgap Funding Bill, Trump Threatens Layoffs Targeting Democrats

The United States faced the imminent threat of a government shutdown on Tuesday (30 September) night after the Senate voted down a stopgap funding bill, India Today reported.

President Donald Trump heightened tensions further by warning of potential new layoffs of federal workers.

With a 55-45 vote, the Senate effectively closed the door on keeping the government open beyond midnight.

The shutdown is set to begin at 12.01 am local time Wednesday.

Federal agencies have started preparing to halt “nonessential” services, potentially disrupting air travel, delaying economic data, and closing research centres and loan offices.

The US House is not in session, and with Republicans and Democrats still at odds, chances of a last-minute resolution appear slim.

Senate Republican leader John Thune noted lawmakers may revisit the issue later in the week, but for now the deadlock continues.

Senate Democratic Leader Chuck Schumer accused Republicans of attempting to “bully” Democrats by blocking negotiations on health care subsidies and other major priorities.

Following a fruitless White House meeting on Monday, Schumer said, “It’s only the president who can do this. We know he runs the show here.

"Republicans have until midnight tonight to get serious with us," he added.

According to Democrats, the standoff centres on protecting health care access for millions.

They are pushing to extend Affordable Care Act subsidies and reverse Medicaid reductions included in Trump’s tax legislation earlier this year.

Rather than easing negotiations, Trump escalated the conflict.

Before the Senate vote, he warned that mass layoffs would follow a shutdown: “We’ll be laying off a lot of people. They’re going to be Democrats,” he said.

Trump’s warning follows a record wave of federal departures.

Over 150,000 workers are scheduled to exit this week under a buyout plan — the largest in eight decades — after tens of thousands were already dismissed earlier in the year.

Trump's decision to withhold billions in approved funding has further hardened Democratic opposition.

In an unusual step, several agencies circulated memos faulting Democrats for the possible shutdown — breaking with the tradition of keeping federal employees insulated from partisan disputes.

Government contingency plans reveal a familiar but disruptive scenario.

Military staff, border security, and air traffic controllers will continue working without pay, while Social Security and Medicare operations are expected to continue.

However, hundreds of thousands of federal employees are expected to receive furlough notices.

The Education Department anticipates sending home nearly 90 per cent of its workforce.

The EPA will suspend some pollution cleanups, the Small Business Administration will stop issuing loans, and the Labor Department’s key unemployment report will be put on hold.

The Smithsonian museums and National Zoo will shut down, while national parks may either close entirely or operate with minimal staffing.

Health care remains the core of the dispute.

Democrats demand that any funding deal secure Affordable Care Act subsidies expiring at year’s end.

Without renewal, premiums could rise for nearly 24 million Americans, especially in Republican-led states such as Florida and Texas.

Schumer dismissed the Republican proposal, saying, “It does nothing, absolutely nothing to solve the biggest health care crisis in America.”

Republicans counter that Democrats are obstructing the budget for political leverage before the 2026 midterms.

“The far left’s determination to oppose everything President Trump has said or done is not a good reason to subject the American people to the pain of a government shutdown,” Thune said.

This marks another shutdown confrontation for Trump.

In 2018, his push for border wall funding caused a 35-day closure, the longest in US history.

Since 1981, the US government has shut down 15 times, though most lasted only a few days.

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