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Senate stalemate sends US shutdown into second week

October 3, 2025

U.S. Senators have failed for the fourth time to pass spending proposals to reopen the federal government, with both Republican and Democratic proposals unable to reach the required 60-vote threshold. The primary disagreement centers on healthcare, with Democrats seeking to maintain low-income health insurance subsidies and reverse Medicaid cuts, while Republicans accuse Democrats of trying to provide healthcare to undocumented immigrants. The White House has warned of potential mass layoffs to maintain essential services if the shutdown continues, already suspending billions in infrastructure funding to Democratic-led areas.

Who is affected

  • Federal government workers facing potential layoffs
  • Americans who rely on low-income health insurance subsidies and Medicaid
  • Chicago, New York City, and Democratic-run states losing billions in federal infrastructure and energy funding
  • The broader American economy (potentially losing $15 billion in GDP weekly)
  • Unemployed individuals as unemployment rates rise

What action is being taken

  • The White House is discussing potential layoffs with the Office of Management and Budget (OMB)
  • The federal government is suspending $2.1 billion in infrastructure funding for Chicago
  • The government has frozen $18 billion in infrastructure spending for New York City
  • Approximately $8 billion in federal energy project funding for Democratic-run states has been canceled
  • White House officials are examining which agencies should face cuts

Why it matters

  • The economic consequences are accumulating daily with potential $15 billion weekly GDP losses
  • Health insurance subsidies for low-income Americans could expire
  • Trump administration's cuts to the Medicaid health program may remain in place
  • Federal infrastructure and energy projects are being suspended or canceled
  • The political divide is deepening with both parties blaming each other and little progress in negotiations

What's next

  • No explicit next steps stated in the article

Read full article from source: BBC

Senate stalemate sends US shutdown into second week