US government on brink of shutdown after Senate vote fails; Trump warns of potential layoffs

US on Verge of Government Shutdown as Senate Vote Fails, Trump Warns of Layoffs.

Washington: The United States edged toward a federal government shutdown Tuesday night after the Senate failed to pass a stopgap funding bill. The 55-45 vote leaves little chance of keeping the government open past midnight, with the shutdown clock set to expire at 12:01 a.m. Wednesday. Agencies are preparing to suspend “nonessential” services, potentially disrupting air travel, delaying economic reports, and closing research labs, small-business loan offices, and other government operations.

With the House out of session and no compromise in sight between Republicans and Democrats, a last-minute rescue appears unlikely. Senate GOP leader John Thune said lawmakers may attempt another vote later in the week, but the stalemate shows no immediate signs of breaking.

Political Standoff
Senate Democratic Leader Chuck Schumer accused Republicans of “bullying” Democrats over health care subsidies and other priorities. Democrats want to extend Affordable Care Act subsidies and reverse Medicaid cuts passed earlier this year, citing the need to protect health coverage for millions of Americans.

Meanwhile, President Donald Trump escalated tensions by threatening mass federal layoffs if the government shuts down. “We’ll be laying off a lot of people. They’re going to be Democrats,” he said ahead of the vote. The warning comes amid a historic exodus of federal employees, with more than 150,000 expected to leave this week under a buyout program, the largest in 80 years.

Who Works, Who Doesn’t
During a shutdown, military personnel, border agents, and air traffic controllers continue working but remain unpaid. Social Security checks and Medicare claims will proceed. However, hundreds of thousands of other federal employees face furloughs: the Education Department expects to furlough nearly 90% of its staff, the EPA will halt certain cleanup operations, and the Small Business Administration will stop issuing loans. National parks, Smithsonian museums, and the National Zoo may close or operate with minimal staff.

Health Care at the Core
Health care remains central to the dispute. Democrats insist any funding bill preserve ACA subsidies, warning that failure could increase premiums for 24 million Americans, particularly in Republican-led states like Florida and Texas. Republicans argue Democrats are leveraging health care to block the budget ahead of the 2026 midterms.

A Familiar Crisis
This is not the first government shutdown under Trump. In 2018, a 35-day closure occurred over border wall funding — the longest in US history. Since 1981, the US has experienced 15 shutdowns, most lasting only a few days.