The U.S. Senate on Wednesday failed to approve a short-term spending bill, as the federal government entered its first shutdown in nearly seven years.

The Senate voted on the same two bills that it failed to pass on Tuesday night – one from Democrats and the other from Republicans.

Healthcare benefits remain a key sticking point in the latest negotiations, with Democrats advocating stronger healthcare funding, while Republicans accuse them of seeking to provide free healthcare to undocumented immigrants.

"Now, Senate Democrats are shutting down the government and holding the economy hostage because they want to reinstate those benefits for illegal aliens," U.S. Vice President JD Vance said in a Fox News interview on Wednesday.

"Republicans shut down the government because they can't be bothered to protect health care for Americans across this country," Senate Minority Leader Chuck Schumer said Wednesday on X.

Schumer took to social media on Tuesday saying that Republicans were lying about Democrats' stance. "This is a lie. Not a single federal dollar goes to providing health insurance for undocumented immigrants. NOT. ONE. PENNY."

Shutdowns are a periodic feature of gridlocked Washington, although this is the first since a record 35-day pause in 2019, when Trump was in his first term. They are unpopular because multiple services used by ordinary voters, from national parks to permit applications, become unavailable.

This time, the shutdown comes against a darker backdrop, with Trump racing to enact hard-right policies, including slashing entire government departments.

The White House is threatening to turn many of the furloughs into mass firings.

Vance warned on Wednesday that a prolonged federal government shutdown would lead to layoffs. 

"Let's be honest, if this thing drags on for another few days, or, God forbid, another few weeks, we are going to have to lay people off," he told reporters at a White House press briefing.

White House Press Secretary Karoline Leavitt said at the briefing that she expected layoffs to happen "very soon."

The Washington Monument and the U.S. Capitol are among the landmarks closed due to the government shutdown. The Smithsonian Institution said that it will use money from the last fiscal year's budget to keep its museums, research centers and the National Zoo open at least through October 6.

Most national parks will keep outdoor areas open, but staffed facilities, such as visitor centers, will be closed.

Federal employees who are considered essential must still report to work, although they will not be paid until the government reopens. Hundreds of thousands of others will be placed on unpaid leave. Some public services will be suspended or delayed, and the release of economic data will also be affected.

"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)