US government nears shutdown as Senate vote fails; Trump warns of layoffs

US Faces Government Shutdown as Senate Vote Fails; Trump Threatens Layoffs.

Washington: The US teetered on the brink of a federal government shutdown Tuesday night after the Senate failed to pass a stopgap funding bill, with the shutdown set to begin at 12:01 a.m. Wednesday. Agencies are preparing to suspend “nonessential” services, potentially disrupting air travel, delaying economic reports, and closing government offices, research labs, and national parks.

With the House out of session and no agreement between Republicans and Democrats, prospects for a last-minute deal appear slim. Senate GOP leader John Thune said lawmakers may try again later in the week, but the impasse remains.

Senate Democratic Leader Chuck Schumer accused Republicans of “bullying” Democrats over health care subsidies and Medicaid cuts, while President Donald Trump escalated tensions by threatening mass federal layoffs if the shutdown occurs. Over 150,000 federal workers are expected to leave this week under a buyout program, the largest in eight decades.

During a shutdown, essential personnel like military staff, border agents, and air traffic controllers continue working but remain unpaid. Other employees face furloughs, and agencies including the Education Department, EPA, and Small Business Administration will scale back operations. Social Security and Medicare payments will continue, but national parks and museums may close.

At the heart of the deadlock is health care. Democrats demand ACA subsidies be preserved to protect 24 million Americans, while Republicans accuse them of leveraging health care for political gains ahead of the 2026 midterms.

This marks another shutdown showdown under Trump, recalling the 2018 35-day closure over border wall funding — the longest in US history. Since 1981, the US has experienced 15 government shutdowns, most lasting only days.