WASHINGTON, October 1 — The United States inched closer to a government shutdown after the Senate failed to advance a temporary funding measure, with President Donald Trump warning of more federal layoffs and program cancellations if Congress does not reach a deal.
The chamber voted 55–45, falling short of the 60 votes needed to extend funding past the midnight deadline, virtually guaranteeing that federal agencies will scale back operations on Wednesday. Nonessential services will be suspended, potentially disrupting air travel, small business loans, and even the release of the monthly unemployment report. Law enforcement, border guards, and military troops will continue working, but without pay until the deadlock ends.
Republicans and Democrats remain locked in a standoff. Democrats insist any spending measure must include permanent subsidies under the Affordable Care Act, while Republicans argue healthcare should be debated separately. The dispute has left little room for compromise, and any agreement would also have to pass the Republican-controlled House, which is not currently in session.
Senate Republican Leader John Thune said another vote on the House-passed bill will take place Wednesday, though prospects for success remain slim. “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.
Trump escalated tensions ahead of the vote, pledging to dismiss more workers and cancel programs backed by Democrats. “We’ll be laying off a lot of people,” he told reporters. “They’re going to be Democrats.” Already this week, more than 150,000 federal employees are scheduled to leave under a buyout program, the largest exodus in 80 years, while tens of thousands have already been fired this year.
In memos to staff, agencies including the Justice Department and the Social Security Administration blamed Democrats for the looming shutdown — a break from long-standing practice of insulating government workers from partisan disputes.
Senator Catherine Cortez Masto of Nevada, one of three Democrats to support the Republican bill, said the “costly shutdown” would “hand even more power to this reckless administration.”
Federal unions have filed lawsuits to block the wave of layoffs, but courts so far have allowed Trump to proceed while cases are under review. Agencies have published contingency plans that would halt scientific research, close customer service offices, and stop pollution cleanup programs. The Small Business Administration said it would stop issuing loans, and airlines warned of flight delays if air traffic staffing is disrupted.
The immediate fight centers on roughly $1.7 trillion that funds agency operations, about one-quarter of the $7 trillion federal budget. The remainder primarily covers health, retirement benefits, and interest on the $37.5 trillion national debt. Democrats argue the stakes for healthcare are especially urgent, with subsidies set to expire at the end of the year. Without action, they say, costs for 24 million Americans will surge — particularly in Republican-led states like Florida and Texas that have resisted expanding coverage.
“Our guarantee is to the American people that we’re going to fight as hard as we can for their healthcare, plain and simple,” Senate Democratic Leader Chuck Schumer said. Republicans counter that Democrats are holding the budget hostage to shore up support before the 2026 midterm elections.
The looming shutdown recalls the 35-day impasse of 2018–19, the longest in U.S. history, which cost the economy $3 billion, according to the Congressional Budget Office. With no clear path forward, lawmakers and agencies are bracing for yet another round of fiscal brinkmanship.
