Article Summary –
The federal government partially shut down on October 1 due to the failure of the GOP-led Congress and President Trump to pass any appropriations bills or a stopgap measure, affecting federal operations and worker pay. Congressional Democrats proposed a continuation to maintain government operations and extend health insurance subsidies, but Republicans refused to negotiate beyond a short-term measure that does not address increasing insurance premiums. President Trump, who has falsely accused Democrats of providing free healthcare to undocumented immigrants, also plans to use the shutdown as a reason to permanently lay off federal workers, aiming to reduce the workforce by 300,000 in 2025.
The federal government halted operations on Oct. 1 after Congress, led by the GOP, and President Donald Trump did not pass any of the 12 annual appropriations bills or a stopgap bill by the deadline.
Without spending laws, essential government programs halt, leaving federal workers unpaid.
Subsidies that reduce health insurance costs under the Affordable Care Act for millions of Americans are set to expire at the end of 2025. Renewal notices this month may show premium hikes of 20% or more.
Democrats proposed a continuing resolution to keep the government running until Oct. 31, prolong health insurance subsidies, increase public official security funding, and reverse $1 trillion in Medicaid and other health program cuts enacted in Trump’s budget law.
Trump and Congressional Republicans refused to negotiate, pushing a seven-week stopgap law that ignores health insurance cost spikes.
A stopgap bill passage requires a simple House majority and a three-fifths Senate supermajority, meaning Republicans need at least seven Senate Democrat votes.
On Sept. 30, House Republicans adjourned after two minutes, blocking Democrats from considering legislation to avert a shutdown and insurance price hikes. Senate Republicans rejected the proposal with a 53-47 vote. Trump also refused to negotiate, telling Fox News on Sept. 12, “The Democrats are sick. Don’t even bother dealing with them.”
Trump falsely claimed the Democratic proposal offers free health care to undocumented immigrants, posting on social media: “The Democrats want Illegal Aliens… to receive FREE Healthcare.”
The Trump administration threatened to use the shutdown as a pretext for more federal worker layoffs. Since January, Trump’s Department of Government Efficiency has orchestrated tens of thousands of layoffs, targeting a workforce reduction of 300,000 people in 2025.
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