US Govt Shutdowns For The First Time In Six Years! Donald Trump Threatens Of Layoff, US Stock Market In Focus

The United States government has entered its 15th shutdown since 1981, halting numerous operations. This includes delaying the September employment report, slowing air travel, and suspending scientific research. Additionally, American troops will not receive pay, and 750,000 federal workers face furloughs. This shutdown costs the government $400 million daily. The Senate's failure to pass a stopgap funding bill led to this situation.

President Donald Trump has intensified tensions by threatening layoffs of federal employees. "We'll be laying off a lot of people. They're going to be Democrats," he stated before the vote. This adds to an already significant exodus of federal workers, with more than 150,000 set to leave through a buyout program this week.

Political Standoff Over Health Care

The funding dispute revolves around $1.7 trillion for government agencies, which is a fraction of the total $7 trillion budget. Most of the remaining budget is allocated to health and retirement programs and interest on the national debt of $37.5 trillion. The deadlock primarily concerns health care subsidies under the Affordable Care Act that are due to expire at year's end.

Democrats demand these subsidies be included in any funding bill, fearing premium hikes for 24 million Americans without them. Senate Democratic Leader Chuck Schumer accused Republicans of trying to "bully" Democrats by withholding these subsidies and other priorities.

Impact on Federal Operations

The shutdown affects various sectors differently. Military personnel, border agents, and air traffic controllers will continue working but without pay until the shutdown concludes. Social Security checks and Medicare claims will still be processed. However, many federal employees face furloughs.

The Education Department plans to furlough nearly 90% of its staff, while the Environmental Protection Agency will pause some pollution cleanup efforts. The Small Business Administration will halt loan issuance, and even the Labor Department's unemployment report will be suspended.

Historical Context

This isn't Trump's first encounter with a government shutdown; in 2018, his demand for border wall funding led to a 35-day closure-the longest in US history. Since 1981, there have been 15 shutdowns in total, most lasting only a few days.

Senate Republican leader John Thune mentioned that lawmakers might attempt another vote later in the week to resolve the impasse. However, there are no signs of compromise between Republicans and Democrats as yet.

Some agencies have even sent memos blaming Democrats for the impending shutdown-a departure from norms that typically protect federal employees from partisan blame.

The Smithsonian museums and National Zoo will close their doors during this period. National parks may either lock gates or operate with minimal staff until further notice.

The current political standoff shows no signs of resolution soon as both parties remain firm on their positions regarding health care subsidies and budget allocations.