U.S. lawmakers returned to the Capitol for another round of voting on government funding amidst a partial shutdown, with little progress made in resolving the impasse. Despite Republican control of the executive and legislative branches, Senate filibuster rules mandate at least 60 votes for funding legislation, granting Democrats leverage to push for policy concessions with their 47 seats.
Democrats have insisted on extending expiring health insurance tax credits before agreeing to a deal, while Republicans argue that such negotiations should occur post-funding approval. The shutdown’s potential economic impact looms large, as an estimated 750,000 federal employees face furloughs, risking a daily loss of $400 million in wages, likely dampening overall consumer demand.
Economic data releases, including the key monthly employment report, have been halted by the U.S. Labor Department. The Trump administration announced a $2.1 billion withholding for Chicago infrastructure projects and previously paused $18 billion for New York projects during the shutdown, prompting criticism from Senate Minority Leader Chuck Schumer.
The week witnessed federal agencies disseminating partisan messages blaming Democrats for the shutdown, drawing ire from the public. Such messaging, alleged by some to violate the Hatch Act restricting political activities by federal employees, has sparked calls for investigations into potential violations. Housing and Urban Development Secretary Scott Turner dismissed concerns over Hatch Act allegations, labeling them distractions from the shutdown’s impact on Americans.
Critics highlight the risk of eroding trust in government impartiality amid the administration’s targeted messaging. The White House and some Republicans have resorted to sharing memes targeting Democrats, including debunked claims linking benefits for unauthorized residents to the shutdown. Latin organizations condemned the dissemination of AI videos portraying Democratic leaders as “reprehensible,” underscoring the divisive political climate surrounding the shutdown.