U.S. government braces for shutdown as Senate fails to pass short-term spending bill

The U.S. Senate failed to pass a short-term spending bill on Tuesday night, setting the federal government on track for a shutdown starting at midnight, which would mark the first federal government shutdown in nearly seven years.

Senate Democrats blocked a continuing resolution proposed by Republicans to temporarily keep the government running. The measure didn't gain enough support, falling short of the 60 votes required for passage.

Senate Republican Leader John Thune said the chamber would vote again on the House-passed measure later this week.

In the latest negotiations, healthcare benefits have been one of the core sticking points between the two parties. Democrats are demanding stronger healthcare-related benefits, including an extension of the enhanced subsidies for the Affordable Care Act set to expire at the end of the year, as well as restoring the act's coverage eligibility for certain immigrants who are legally present, including refugees and asylum seekers.

Republicans, on the other hand, opposed these measures and have been pushing to temporarily maintain current government funding levels to allow more time for negotiations.

Earlier in the day, Republicans and Democrats continued to trade blame, accusing each other of forcing the government into a "shutdown."

Ahead of Tuesday's vote, U.S. President Donald Trump told reporters at the White House on Tuesday afternoon that Democrats want to shut down the government, claiming that their insistence on providing free healthcare to undocumented immigrants has caused the negotiations to stall.

"We'll be laying off a lot of people," Trump told reporters. "They're going to be Democrats."

"This is Donald Trump's shutdown. He owns it," Senate Minority Leader Chuck Schumer said on X, retweeting the video of Trump's remarks. Schumer also said that Republicans are lying about Democrats' stance.

"Republicans would rather lie and shut down the government than protect your health care," said Schumer in another post on X.

The operating funds for the U.S. federal government are supposed to come from annual budget appropriations. Congress is normally expected to pass new annual appropriations bills before the start of the new fiscal year on October 1. However, in recent years, intense partisan battles have often prevented timely agreement.

Over the past year, the federal government has faced multiple "shutdown" crises, with Congress passing short-term spending bills just hours before funds ran out in December 2024 and March 2025.

The government last shut down for 35 days in 2018 and 2019, during Trump's first term, due to a dispute over immigration. That cost the U.S. economy $3 billion, or 0.02% of GDP, according to the nonpartisan Congressional Budget Office.

At issue now is $1.7 trillion that funds agency operations, which amounts to roughly one-quarter of the government's total $7 trillion budget. Much of the remainder goes to health and retirement programs and interest payments on the growing $37.5 trillion debt.

"Shutdowns don't save money, they waste money," Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said in a statement.

"Under shutdowns, we pay federal workers not to work and rent buildings that aren't being used, all while requiring costly shutdown planning, inefficient allocation of government resources, and a reduction in the services available to the American people. We should avoid a shutdown and keep the government funded," she said.

(With input from agencies)