Democrats demanded extensions of Affordable Care Act subsidies and reversals of Medicaid cuts as part of the deal, while Republicans wanted separate consideration of these issues.
This is the first government shutdown in more than six years. In 2018-2019, funding for the government had lapsed for five weeks during President Donald Trump's first term.
The impasse will leave hundreds of thousands of federal employees furloughed and government operations disrupted.
Since the 1977 fiscal, the US government has witnessed 20 funding gaps.
A memo from the White House Office of Management and Budget (OMB) cautioned government agencies to “execute their plans for an orderly shutdown,” though certain functions like immigration enforcement and some public health activities will continue.
“Unfortunately, Democrat senators are blocking passage of H.R. 5371 in the Senate due to Democrats' insane policy demands, which include $1 trillion in new spending,” the OMB memo said.
Around 750,000 federal workers would be affected, with a total daily cost of roughly $400 million in lost compensation, the Congressional Budget Office estimated.
While workers in essential roles like air traffic controllers, law enforcement and social security operations will continue working, many services, including passport processing, national park operations and regulatory inspections are expected to stop.
ALCHEMPro News Desk (DS)
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