U.S. Lurches Toward Shutdown as Senate Vote Fails, Trump Threatens Fresh Cuts

U.S. President Donald Trump sits the Oval Office to sign an executive order on AI and pediatric cancer research, at the White House, Washington, D.C., U.S., September 30, 2025. REUTERS/Nathan Howard

The United States edged closer to a federal government shutdown on Tuesday after the Senate failed to advance a stopgap funding bill, while President Donald Trump escalated tensions by threatening sweeping layoffs and program cuts.

In a 55-45 vote, senators fell short of the 60 votes needed to pass the measure, leaving federal agencies on track to suspend all but “essential” operations when funding lapses at midnight.

The move is expected to disrupt services ranging from air travel to the release of economic data, while tens of thousands of government workers face unpaid furloughs.

Senate Republican leader John Thune said the chamber would attempt another vote on Wednesday, but deep partisan divides have dimmed hopes of a last-minute compromise.

Democrats insist any funding bill must include permanent Affordable Care Act subsidies to prevent rising healthcare costs for 24 million Americans, while Republicans argue healthcare should be addressed separately.

Trump, who has already overseen mass federal layoffs, warned of further cuts if the shutdown proceeds. “We’ll be laying off a lot of people,” he told reporters, adding that “they’re going to be Democrats.”

More than 150,000 workers are already set to leave government payrolls this week after a buyout program, the largest exodus in eight decades.

Several agencies, including the Justice Department and Social Security Administration, sent furlough notices that blamed Democrats for the impasse, a move critics said violated norms of neutrality.

Two federal employee unions have filed lawsuits to halt mass layoffs, but courts have so far allowed Trump’s firings to continue.

Senator Catherine Cortez Masto of Nevada, one of three Democrats who voted with Republicans on Tuesday, warned the shutdown would hand “even more power to this reckless administration.”

The shutdown would halt nonessential services such as small business loans, environmental cleanups, and scientific research, while military personnel, border guards, and law enforcement officers would continue working without pay.

Airlines have already warned of flight delays, and the Labor Department said it will not release its monthly unemployment report.

The current standoff centers on $1.7 trillion in agency funding, about one-quarter of the federal government’s $7 trillion budget. Much of the rest is locked into healthcare, retirement programs, and interest payments on the $37.5 trillion national debt.

The U.S. has experienced 15 shutdowns since 1981, most lasting only days, though the 35-day shutdown of 2018-2019 under Trump remains the longest and cost the economy $3 billion.

With both parties dug in, it remains unclear how long the looming shutdown could last.

Democrats accuse Trump of inflaming the crisis, citing a controversial deep-fake video he shared targeting Democratic leaders, while Republicans blame Democrats for “holding the budget hostage” to healthcare demands.

As midnight approaches, millions of Americans brace for a new period of uncertainty in Washington’s ongoing fiscal battles.

Source: Reuters

Written By Rodney Mbua