US: Federal government shutdown over healthcare, layoffs looming

The United States of America was thrown into a government shutdown on October 1st after the 2025 spending bill failed to pass the US Senate.

The Democratic Party is holding firm in its position to include amendments in the bill that would protect Americans’ access to healthcare subsidies, while Republicans warn this shutdown would put thousands of jobs at risk, according to the AP.

Vice President JD Vance has stated in the White House briefing room that if this drags on, they will have to carry out considerable layoffs. The Trump administration has famously slashed federal jobs earlier this year, and this seems to be another pretext to continue his austere policies. Talks between both sides haven’t been scheduled yet, which might drag this out for longer than needed.

Reportedly, the bill has not gathered the necessary votes to pass several times, with the current divide at 55-45, whereas it needs 60 votes to move forward. Republicans hold a 53-47 majority in the House, yet these votes are not enough to advance it, and the condition ultimately pushes for bipartisan cooperation in the Senate.

Republican Senate Majority Leader John Thune said his party is open to discussing the healthcare legislation; however, he said this won’t happen as part of the talks for the spending bill. This intervention has helped Republicans, as some Democrats are now rethinking their votes.

Yet, the Democrats don’t have faith in the Republicans’ promises, as Trump has said that out of the programmes and offices that he considers closing permanently, his party would be slashing the ones that Democrats advocate for. This seems to refer to education, environmental, and a plethora of government services that will be underfunded to favour Trump’s deportation policies.

Democrats argue their fight to include the healthcare subsidies is a “moral” issue, as millions of Americans won’t be covered by the Affordable Care Act anymore, which would leave them at the mercy of insurance companies that are projected to dramatically increase their prices. This signals that the majority of the party’s members will still hold firm in their positions.

This federal funding fallout marks the third time it’s happened during Trump’s presidential term. This divide over the budget sheds light on the current political climate that doesn’t favour compromises between parties, which have become inflexible in their stances.

It has been almost 9 months since Trump started his second term, and the government shutdown makes this term even more tumultuous than it was before. The president came in like a wrecking ball, slashing international aid and cutting down the numbers and budgets of federal agencies with the DOGE initiative. He led a trade war with Canada, China, Mexico, and the EU and raised tariffs on countries all over the world.

He was heavily involved in ceasefire deals to help bring an end to Israel’s war on Gaza, he tried to resolve the Russia-Ukraine war, he launched a crackdown on American universities, and he banned travel for 12 nations.

While the end of this government shutdown is nowhere near in sight for now, it could affect not only Americans but countries worldwide, as has been the case since the start of Donald Trump’s second term.

AP, Maghrebi.org