Federal funding set to expire at midnight Tuesday, Congress shows no sign of agreement on a temporary spending measure, raising the prospect of a U.S. government shutdown. President Donald Trump will meet congressional leaders at the White House on Monday in a last-ditch effort to resolve the impasse.
The standoff could furlough thousands of federal workers, disrupt services from NASA to national parks, close federal courts, and delay small business grants. At issue is $1.7 trillion in discretionary spending, roughly one-quarter of the $7 trillion federal budget, which funds agency operations and lapses at the fiscal year’s end if no extension is passed.
The dispute extends beyond short-term funding. Democrats aim to restore healthcare subsidies set to expire at year-end, while Republicans seek a temporary spending bill without additional concessions. The Republican-controlled House passed a bill to fund agencies through November 21, but the Senate defeated it.
Senate Democratic Leader Chuck Schumer warned of “huge pressure” on Republicans to negotiate healthcare funding, citing risks to rural hospitals and rising insurance premiums for 24 million Americans under the Affordable Care Act. Senate Republican Leader John Thune urged Congress to pass a stopgap funding measure first, saying healthcare negotiations cannot be resolved by Tuesday.
Democrats hope to leverage the funding debate to energize their base ahead of the 2026 midterm elections. Some moderate Democrats have expressed concern about potential shutdown effects on local economies and federal operations, such as the U.S. Coast Guard and medical research at universities.
The stakes are high: a shutdown could produce widespread disruption, while political maneuvering over healthcare could shape public perception ahead of upcoming elections. Both parties face the challenge of balancing immediate fiscal responsibilities with longer-term policy priorities.
Partial government shutdowns are not new. Since 1981, the U.S. has experienced 14, most lasting only a few days. The most recent, from 2018 to 2019, lasted 35 days amid disputes over immigration funding.
Democrats remain firm on healthcare, with party leaders insisting any spending measure must address subsidies and tax credits. Republicans have criticized the stance, suggesting opposition is politically motivated.
As the deadline approaches, the focus is on whether negotiations can prevent a shutdown and its potential economic and social impact.