Republicans and Democrats are unable to narrow the differences in spending bills as the effects of the closure begin to be shown.
US lawmakers have not made any progress by ending partial federal closures.
The US Senate on Wednesday defeated a duel proposal with a margin that reflected similar efforts the day before, failing to avoid a shutdown.
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The senator rejected the Republican proposal to expand government funding by 55-45 votes until November 21st.
Two Democrats, John Fetterman of Pennsylvania, Catherine Cortez Mast of Nevada and Angus King of Maine, crossed the aisle to support the bill, as they did Tuesday.
The Democratic bill, which tied the government’s funding extension to around $1.5 trillion in new healthcare spending, failed to 53 or 47 votes, with all Republicans once again opposed.
A deadlock came when US President Donald Trump built his promise that he had pledged to spend the Democrats on the closure.
White House Budget Director Russell T. Vert said the administration would freeze $26 billion in infrastructure funds allocated to democratic states.
Vought said $18 billion was pending for New York City’s transportation projects, and was pending to prevent it from being delivered under the “unconstitutional DEI principles.”
Vought said $8 billion in “Green New Scalling Funding” in 16 states, including California, Washington and Hawaii, have also been cancelled.
Trump administration officials have also shown that the US president will use shutdowns to advance his previous threat of implementing massive layoffs.
“We’re going to have to fire people,” Vice President J.D. Vice President Vance told the White House briefing.
“You need to save money in some places, so that important services don’t turn off elsewhere.”
Stephanie Razer, a lecturer in public policy at the University of Michigan’s Gerald R. Ford School of Public Policy, said the uncertainty created by the closure has already hurt the economy.
“Everyone is waiting to see how politics unfolds and who the biggest losers and winners are, but we need to remember that uncertainty is already costing us in terms of investment/expenditure delays, increased borrowing costs, exhaustion of reserves and management responsibility.”
“Everyone is spending all the time spinning the scenario and worrying about the next few weeks and months, rather than planning for the future.”
With the closure entering its second day, neither Republicans nor Democrats felt like they were in a compromise.
Senate minority leader Chuck Schumer has accused Trump of treating Americans as “pawns” and “threatening them as national threatening pain.”
He said Democrats’ push to expand Medicaid cuts, the opposite of the healthcare subsidies included in Trump’s one big beautiful bill act, reflects the hopes of the people.
“Above it. No more. I want them to sit down and negotiate something real that will remove this huge strain from their shoulders,” Schumer said.
John Teen, the leader of the Republican Senate Majority, took responsibility for the Democrats’ feet.
“They lost all the rationale regarding their hatred of President Trump,” Tune said in an X post.
“I hope Democrats come to their sense and reopen their government.”
