More stories

  • in

    US shutdown deadlock deepens as senators reject competing bills

    The deadlock over ending the US government shutdown deepened on Wednesday, with senators once again rejecting competing bills to restart funding as Democrats and Republicans remain dug in on their demands for reopening federal agencies.The funding lapse has forced offices, national parks and other federal government operations to close or curtail operations, while employees have been furloughed. Signs of strain have mounted in recent days in the parts of the federal government that remained operational, with staffing shortages reported at airports across the US as well as air traffic control centers. Further disruptions may come next week, when US military personnel and other federal workers who remain on the job will not receive paychecks, unless the government reopens.When the Senate met on Wednesday afternoon, it became clear that sentiment had not shifted in the eight days since the shutdown began. For the sixth time, Democratic and Republican proposals to restart funding both failed to receive enough support to advance, and no senators changed their votes from recent days.Democrats are demanding that any bill to fund the government be paired with an array of healthcare-centered provisions, including an extension of premium tax credits for Affordable Care Act (ACA) plans. Those expire at the end of the year, and costs are set to rise for the plans’ roughly 20 million enrollees if they are not renewed.Donald Trump has sought to pressure the Democrats to accept the GOP’s proposal, which would only extend funding through 21 November. On Tuesday, the White House office of management and budget released a memo arguing that federal workers were not entitled to back pay, despite a 2019 law saying they should be.The Republican speaker of the House, Mike Johnson, poured cold water on that prospect at a press conference the following day, saying: “I think it is statutory law that federal employees be paid. And that’s my position. I think they should be.”Both parties otherwise remained unmoved in their demands. The House of Representatives passed the GOP’s bill on a near party-line vote last month, and Johnson has kept the chamber out of session ever since in a bid to force Senate Democrats to approve it.At his press conference, the speaker alleged that top Senate Democrat Chuck Schumer was opposing the Republican bill out of fear from a primary challenge by the “communists” in his party.“They are worried about the Marxist flank in their Democrat party,” Johnson said.“He’s terrified that he’s going to get a challenge from his far left. I’ve noted that Chuck Schumer is a very far-left politician, but he is not far enough left for the communists, and they’re coming for him, and so he has to put up his dukes and show a fight.”In a speech on the Senate floor, Schumer once again faulted Republicans for refusing to negotiate on the Democrats’ healthcare demands. The Senate’s majority leader John Thune has said he will discuss the ACA tax credit issue, but only when government funding is restored.“We can do both: fix healthcare and reopen the government. This is not an either-or thing, which Republicans are making it. The American people don’t like it,” Schumer said.While both parties’s rank-and-file lawmakers have appeared united around their leaders’ strategies, the GOP suffered a high-profile defection on Monday when far-right lawmaker Marjorie Taylor Greene backed negotiations over the tax credits. However in the days since, no other Republicans have publicly joined her.Jen Kiggans, a Virginia Republican congresswoman representing a swing district, has received bipartisan support for legislation that would extend the credits for a year, and is viewed a potential compromise in the funding standoff.At a press conference on Tuesday, top House Democrat Hakeem Jeffries called the idea a “nonstarter”.“It was introduced by the same people who just permanently extended massive tax breaks for their billionaire donors,” Jeffries said, referring to the One Big Beautiful Bill Act Republicans passed this year without Democratic votes. More

  • in

    Bondi spars over Epstein but stays silent on Comey: takeaways from a tense hearing

    In an often tense hearing before the Senate judiciary committee on Tuesday, the US attorney general, Pam Bondi, stood accused by Democrats of weaponizing the US Department of Justice, “fundamentally transforming” the department, and leaving “an enormous stain on American history” that it will take “decades to recover [from]”.Bondi criticized Democratic lawmakers in personal terms as she faced questions over the department’s enforcement efforts in Democratic-led cities, her mishandling of the Jeffrey Epstein investigation, and inquiries into Donald Trump’s political adversaries. Here are the key takeaways from Bondi’s appearance.1. Democrats criticized Trump’s weaponization of the justice departmentBondi faced questions about her tenure at the department, as Democratic senators condemned the Trump administration for weaponizing the DoJ to investigate and prosecute Trump’s political enemies.“Our nation’s top law-enforcement agency has become a shield for the president and his political allies when they engage in misconduct,” Dick Durbin said. Durbin called Lindsey Halligan, the new US attorney for the eastern district of Virginia, part of a “network of unqualified mega-loyalists masquerading as federal prosecutors”.“Attorney General Bondi: in eight short months, you have fundamentally transformed the justice department and left an enormous stain on American history. It will take decades to recover,” Durbin said.When asked by Amy Klobuchar whether she saw the president’s post on Truth Social, urging her to prosecute his political adversaries such as James Comey and Letitia James, as a “directive”, Bondi evaded the question.“President Trump is the most transparent president in American history,” Bondi said.She refused to “discuss personnel issues”, when Klobuchar asked about Bondi’s reported pushback to the president’s pressure campaign to remove Erik Siebert, Halligan’s predecessor. Bondi also refused to discuss the case against Comey, after Siebert said there was insufficient evidence to prosecute the former FBI director.Adam Schiff said that the department, under Bondi’s leadership, had become Trump’s “personal sword and shield to go after his ever growing list of political enemies and to protect himself, his allies and associates”.Schiff is a noted adversary of the president, and served on the House select committee that investigated the Capitol insurrection. Bondi snapped at him when she refused to answer questions about the allegations against Tom Homan, Trump’s border czar, for allegedly accepting $50,000 in bribes before Trump took office: “Deputy attorney general [Todd] Blanche and [FBI] director [Kash] Patel said that there was no evidence that Tom Homan committed a crime, yet now you’re putting his picture up to slander him.“If you worked for me, you would have been fired,” Bondi continued. “Will you apologize to Donald Trump for trying to impeach him?”2. Bondi refused to discuss the arrest of James ComeyIn a line of questioning by Richard Blumenthal, Bondi refused to discuss or disclose any conversations she may have had with the president in the lead-up to the indictment of Comey last month. Blumenthal said Bondi attended a dinner with Donald Trump, just days before the former FBI director was criminally charged.Bondi instead pushed back against the Democratic senator from Connecticut. “I find it so interesting that you didn’t bring any of this up during President Biden’s administration, when he was doing everything to protect Hunter Biden, his son,” she said.3. Bondi and Durbin sparred over EpsteinDurbin grilled Bondi as to why she made a public claim that the Epstein “client list” was “sitting” on her desk for review earlier this year, only to “produce already public information and no client list”.Bondi pushed back, saying she had “yet to review” the documents, and reaffirmed that there was no Epstein client list.Bondi sparred with Durbin, questioning why he “refused repeated Republican requests to release the Epstein flight logs in 2023 and 2024”. Durbin said Bondi’s claims were not accurate.“I did not refuse. One of the senators here wished to produce those logs, and I asked her to put it in writing, and she never did,” Durbin said, apparently referring to his Republican colleague Marsha Blackburn.4. Republicans focused on ‘Arctic Frost’ revelationsPam Bondi said that Operation Arctic Frost – an intelligence-gathering effort that led to special counsel Jack Smith’s investigation into the plot to overturn the results of the 2020 election – was “an unconstitutional, undemocratic abuse of power”.On Monday, several Republican lawmakers said the FBI gathered phone records from Republican senators. These records were obtained through a grand jury. Republicans have called this move part of the wider pattern of political weaponization of the previous administration.“This is the kind of conduct that shattered the American people’s faith in our government,” Bondi said at the hearing. “Our FBI is targeting violent criminals, child predators and other law breakers, not sitting senators who happen to be from the wrong political party.”Republican Josh Hawley also chimed in. “I’ve heard them say that Joe Biden never targeted his political enemies,” he said. “Huh? That’s interesting, because I could have sworn that yesterday we learned that the FBI tapped my phone.”5. Bondi said ‘national guard are on the way to Chicago’In a heated exchange with Durbin, Bondi refused to answer a question about whether she was consulted about Trump’s decision to send national guard troops to Illinois – the state that Durbin represents.“You voted to shut down the government, and you’re sitting here. Our law enforcement officers aren’t being paid. They’re out there working to protect you,” Bondi said, after declining to discuss internal conversations with the White House.“I wish you loved Chicago as much as you hate President Trump. Currently the national guard are on the way to Chicago. If you’re not going to protect your citizens, President Trump will.” More

  • in

    Trump threatens to invoke Insurrection Act as Bondi faces Senate – US politics live

    Good morning and welcome to our live coverage of US politics as Donald Trump threatened to invoke the Insurrection Act to deploy more troops into Democrat-led cities.“We have an insurrection act for a reason. If I had to enact it I would do that,” Trump told reporters in the Oval Office on Monday, adding, “if people were being killed and courts were holding us up or governors or mayors were holding us up, sure I would do that.”It came after a federal judge in Oregon temporarily halted a National Guard deployment in Portland although troops from Texas could be deployed in Chicago as soon as today despite a lawsuit from Illinois against the move.Meanwhile, Pam Bondi is likely to grilled over troop deployments as she faces the Senate judiciary committee. The attorney general is also likely to face questions over the indictment last month of the former FBI director James Comey, deadly strikes on boats believed to be carrying drugs off the coast of Venezuela, as well as the brewing controversy over the release of documents related to the late sex offender Jeffrey Epstein.Trump is also due to welcome the Canadian PM, Mark Carney, to the White House with trade talks expected to be the main focus of discussions.Later, he will meet American-Israeli former hostage Edan Alexander as the world marks the two-year anniversary of the 7 October attacks. In Egypt, indirect talks are taking place between Israel and Hamas over Trump’s 20-point plan for Gaza.And, of course, this all comes amid the backdrop of the ongoing government shutdown, now entering its second week. Stay with us for all the latest developments.In other news:

    A career federal prosecutor in Virginia has told colleagues she does not believe there is probable cause to file criminal mortgage fraud charges against New York attorney general Letitia James, according to a person familiar with the matter. The prosecutor, Elizabeth Yusi, oversees major criminal cases in the Norfolk office for the US attorney for the eastern district of Virginia and plans to soon present her conclusion to Lindsey Halligan, a Trump ally, who was installed as the US attorney for the eastern district of Virginia last month.

    The US supreme court has declined to hear an appeal from Jeffrey Epstein associate Ghislaine Maxwell of her sex trafficking conviction. Maxwell in 2022 was sentenced to 20 years in prison for sex trafficking and related crimes.

    The Trump administration said that funds from a US government program that subsidizes commercial air service to rural airports are set to expire as soon as Sunday because of the government shutdown.

    Jimmy Kimmel emerged as more popular than Donald Trump after a spat with the president’s administration temporarily left the talkshow host off the air in September, according to a recent poll.

    Brazil’s Luiz Inácio Lula da Silva has urged Donald Trump to scrap tariffs on his country’s imports and sanctions against its officials, as the two men held what the Brazilian presidency called a “friendly” video call. More

  • in

    US government shutdown: Donald Trump promises firings and cuts to ‘Democrats’ favorite projects’ if shutdown continues – live

    President Donald Trump on Thursday said firings of federal workers and cuts to projects could occur if a government shutdown that began Wednesday continues, Reuters reports.“There could be firings, and that’s their fault,” Trump said of Democrats in Congress, when asked during an interview with OAN television network about a recent memo from the Office of Management and Budget that raised prospects of firings.“We could cut projects that they wanted, favorite projects, and they’d be permanently cut,” he said, adding “I am allowed to cut things that should have never been approved in the first place and I will probably do that.”My colleage Lauren Gambino has another key line from the Donald Trump interview that aired today on One America News:“A lot of people are saying Trump wanted this, that I wanted this closing, and I didn’t want it, but a lot of people are saying it because I’m allowed to cut things that should have never been approved in the first place, and I will probably do that,” Trump said.Federal authorities refuse to release a Michigan man in a pending deportation case, despite his life-threatening leukemia and the inconsistent health care he’s received while in custody since August, his lawyer said Thursday, according to the Associated Press.The American Civil Liberties Union of Michigan is now seeking a bond hearing for Contreras-Cervantes, which could allow him to return to his Detroit-area family and doctors while his case winds through immigration court. He’s currently being held at a detention center about three hours away.Jose Contreras-Cervantes, a 33-year-old married father of three who has been living in the U.S. for about 20 years, but not legally, was arrested at a 5 Aug traffic stop in Macomb County, near Detroit. He had no criminal record beyond minor traffic offenses, said ACLU lawyer Miriam Aukerman.Contreras-Cervantes was diagnosed last year with chronic myeloid leukemia, a life-threatening cancer of the bone marrow, said his wife, Lupita Contreras.“The doctor said he has four to six years to live,” she said.Trump’s proposed “compact” with nine prestigious universities was offered to schools that were seen by Trump as “good actors”, May Mailman, a senior White House adviser told the Wall Street Journal yesterday, with a president or a board who were, in the Trump administration’s view, “reformer[s]” who have “really indicated they are committed to a higher-quality education.”The “compact” requires universities to eliminate departments that are seen as hostile or dismissive to conservatives, limit the proportion of international students on campus, accept the Trump administration’s definition of gender, and restrict the political speech of employees.Among the universities the Trump administration is wooing with promises of preferential federal funding in exchange for compliance with Trump’s values is the University of Southern California, a private research university with an $8.2 billion endowment.And even putting academic freedom aside, some of Trump’s proposals would be economically challenging for the University of Southern California, the Los Angeles Times reported.At USC, “26% of the fall 2025 freshman class is international,” the more than 50% of those students come from China or India, the Los Angeles Times reported. The Trump administration’s compact not only limits international student enrollment to 15% of students, but also requires that no more than 5% come from any one country.“Full-fee tuition from international students is a major source of revenue at USC, which has undertaken hundreds of layoffs this year amid budget troubles,” the Los Angeles Times noted.In threatening to cut state funding to any California university that cuts an ideological deal with Trump, California governor Gavin Newsom’s office called Trump’s proposed “compact” with nine leading American universities “nothing short of a hostile takeover of America’s universities.”“It would impose strict government-mandated definitions of academic terms, erase diversity, and rip control away from campus leaders to install government-mandated conservative ideology in its place,” Newsom’s office said in a statement. “It even dictates how schools must spend their own endowments. Any institution that resists could be hit with crushing fines or stripped of federal research funding.”Any California universities that sign the Trump administration’s proposed “Compact for Academic Excellence in Higher Education” will “instantly” lose their state funding, California governor Gavin Newsom said in a statement.“If any California University signs this radical agreement, they’ll lose billions in state funding—including Cal Grants—instantly. California will not bankroll schools that sell out their students, professors, researchers, and surrender academic freedom,” Newsom said in a statement. Trump offered nine prominent universities, including the University of Southern California, the chance to sign his “compact” yesterday, which asked that the universities close academic departments that “purposefully punish, belittle, and even spark violence against conservative ideas,” limit the proportion of international undergraduate students to 15% , and ban the consideration of race or sex in hiring and admissions, in exchange for “substantial and meaningful federal grants”.Newsom’s office said Trump’s offer to universities “ties access to federal funding to radical conservative ideological restrictions on colleges and universities.”President Donald Trump on Thursday said firings of federal workers and cuts to projects could occur if a government shutdown that began Wednesday continues, Reuters reports.“There could be firings, and that’s their fault,” Trump said of Democrats in Congress, when asked during an interview with OAN television network about a recent memo from the Office of Management and Budget that raised prospects of firings.“We could cut projects that they wanted, favorite projects, and they’d be permanently cut,” he said, adding “I am allowed to cut things that should have never been approved in the first place and I will probably do that.”The government shutdown will likely go into next week, with Senate Majority Leader John Thune telling Politico that it is “unlikely” senators will be in the Capitol voting this weekend.“They’ll have a fourth chance tomorrow to vote to open up the government, and if that fails, we’ll give them the weekend to think about it, and then we’ll come back and vote on Monday,” the Republican senator said.Thune also reiterated he will not negotiate the Affordable Care Act tax credits, which has been the point of contention leading to the government shutdown.Senate Minority leader Chuck Schumer previously said that Republicans need to work with Democrats “to reach an agreement to reopen the government and lower healthcare costs.”The Trump administration is considering giving at least $10bn in aid to US farmers, as the agriculture industry begins to grapple with an economic fallout due to Trump’s tariffs, the Wall Street Journal reports.The Journal reports that the Trump administration is considering using revenue from tariffs to fund the aid provided to US farmers and may start to be distributed in the coming months.The deliberations are reportedly still ongoing and the deal to give billions for US farmers has not been finalized. A potential negotiation with China in the coming weeks may change Trump’s calculation to provide aid to the farmers.House Minority Leader Hakeem Jeffries said the Trump administration has done “nothing” to lower the high cost of living for people in the US, while at the same time giving the wealthy significant tax breaks.“The Trump tariffs are actually making life more expensive,” Jeffries said. “And now Republicans refuse to do anything to extend the Affordable Care Act tax credit.”House Minority Leader Hakeem Jeffries accused the Trump administration and Republicans of desiring a government shutdown.“They want to inflict on the American people, they continue to engage in their retribution efforts,” Jeffries said. “And they have zero interest in providing high-quality, affordable and accessible care to everyday Americans.”House Minority leader Hakeem Jeffries called Trump’s behavior “unserious and unhinged.”Ahead of the looming shutdown, Trump shared a racist video on his Truth Social account on Tuesday, depicting Jeffries wearing a sombrero and mustache, while Senate Minority Leader Chuck Schumer spoke in a fake, AI-generated voice.House Minority Leader Hakeem Jeffries said “Republicans have shown zero interest in even having a conversation” to come to a government funding agreement.Jeffries added Democrats are willing to meet with Republicans, including Trump and vice-president JD Vance, to come to an agreement.House minority leader Hakeem Jeffries blamed Republicans for the government shutdown during a press conference.“This is day two of Donald Trump’s shutdown, but it’s day 256 of the chaos that the Trump presidency has unleashed on the American people,” Jeffries said. “Republicans have shut the government down because they don’t want to provide healthcare to working class Americans.”The Trump administration is seeking to strike deals with companies across 30 different industries deemed critical to national or economic security, Reuters reports, in a concerted push before next year’s midterm elections. In some cases, the Trump administration is offering tariff relief in exchange for concessions.Reuters reports that pharmaceutical companies have been contacted by the White House and top Trump administration officials to strike potential deals. For example, Eli Lilly was asked to produce more insulin, Pfizer was asked to produce more cancer and cholesterol medications and AstraZeneca was asked to consider moving its headquarters from London to the US.The administration’s plan to strike deals with companies is an effort to push companies to further Trump’s goal of moving manufacturing to the United States, reducing dependence on China, strengthening supply chains for critical products and contributing to the government’s coffers, according to Reuters. It is an all-out effort to secure wins before next year’s midterms.The administration has reached out to companies working in the pharmaceutical, semiconductor, AI, mining, energy and other industries.This week, Trump announced a deal with Pfizer to cut drug prices in exchange for relief from looming tariffs on imported pharmaceuticals.WIC, the federal program that provides free, healthy food to low-income pregnant women, new mothers and children under five, could run out of funds if the government shutdown persists, NBC News reports.The program serves some 6.8 million people. According to the National WIC Association, “devastating disruptions” may deny millions of moms and children access to nutritious foods if the government remains closed for longer than a week or two, as contingency funds from the USDA will have dried up by then.“Historically, when there has been a shutdown, WIC has remained open for business, but because this one falls at the start of the fiscal year, there are some risks,” Georgia Machell, president of the National WIC Association, told NBC. She called on Congress to pass a funding bill that protects the program and keeps it running without interruption.A USDA spokesperson told the outlet that WIC’s continued operation will depend on “state choice and the length of a shutdown”.Meanwhile, some administration officials are privately warning agencies against mass firings during the shutdown, the Washington Post (paywall) reports.Senior federal officials are telling agencies not to fire employees en masse, warning that it may violate appropriations law and be vulnerable to challenges from labor unions, the Post reports citing two anonymous sources.Senate majority leader John Thune told Politico last night that Democrats folding is the only way he sees the shutdown ending.His comments were echoed House speaker Mike Johnson, who earlier told reporters this morning, “I have quite literally nothing to negotiate,” and insisted that Democrats should support the “clean” continuing resolution.Per Politico’s report, Thune “insisted he would not negotiate on the substance of an extension [to Obamacare subsidies] while the government is closed. But pressed on whether he was open to discussions with Democrats about how the health care negotiations might work post-shutdown or how to advance full-year appropriations bills, he said, ‘We are.’”
    Some of those conversations are happening. With our members and their members there’s a lot of back-and-forth going on right now about some of the things they would like to see happen.
    Thune also said it’s “unlikely” that there will be Senate votes this weekend, meaning the shutdown is likely to last for at least six days. He told Semafor this morning:
    They’ll have a fourth chance tomorrow to open up the government. If that fails, we’ll give them the weekend to think about it. We’ll come back vote again Monday.
    Venezuela’s defense minister General Vladimir Padrino said on Thursday that five combat planes had been detected near country’s coast, in what he characterized as a threat by the United States.“They are imperialist combat planes that have dared to come close to the Venezuelan coast” Padrino said at an air base, in comments broadcast on state television, saying information about the planes had been reported to a control tower by an airline. “The presence of these planes flying close to our Caribbean Sea is a vulgarity, a provocation, a threat to the security of the nation.”The US has deployed a fleet of warships through the Caribbean, which Washington says is to combat drug trafficking, and has also struck several boats it claims were carrying drugs from Venezuela, killing those aboard. Experts have questioned the legality of the strikes.Earlier, we reported that Trump has declared drug cartels operating in the Caribbean are unlawful combatants and said the US is now in a “non-international armed conflict”, according to a memo obtained by the Associated Press.The US military last month carried out three deadly strikes against alleged drug smuggling boats in the Caribbean. At least two of those operations were carried out on vessels that originated from Venezuela.On Monday, Venezuela’s vice-president said Nicolás Maduro was ready to declare a state of emergency in the event of a US military attack on the country, and warned of “catastrophic” consequences if such an onslaught materializes.Hamas will demand key revisions to Donald Trump’s Gaza ceasefire proposal but is likely to accept the plan in coming days as a basis for renewed negotiations, analysts and sources close to the group have told my colleague and Guardian international security correspondent Jason Burke.Trump imposed a deadline of “three or four days” from Tuesday for Hamas to give its response to his 20-point plan, which aims to bring the two-year war in Gaza to a close and allow an apparently indefinite international administration of the devastated territory, or “pay in hell”.Mkhaimar Abusada, a political scientist from Gaza based in Cairo, said Hamas now had to “choose between the bad and the worst”. “If they say ‘no’, as Trump has made clear, that will not be good and will allow Israel to do whatever it takes to finish this. They will say “yes, but we need this and that”, Abusada said.Hamas leaders are divided between Istanbul, Doha and Gaza, which complicates discussions on the group’s response. Turkey and Qatar are putting pressure on Hamas to make concessions.One sticking point is the plan’s demand that Hamas disarm, a source close to the organisation said. The surrender of all weapons would be very difficult for Hamas to accept, especially without any political process or substantial progress towards a two-state solution.Another concern for Hamas is the vague promise of Israeli withdrawals, though the clear statement that there will be no annexation or occupation of Gaza by Israel was welcomed by one source close to Hamas.Hugh Lovatt, a senior fellow at the European Council on Foreign Relations, said it would be very difficult for Hamas to accept the terms unconditionally. “That is understandable. The text lacks details. But then anything other than total and final acceptance will be used against Hamas by Israel, the Trump administration and possibly the Europeans,” he said.You can read Jason’s full piece here: More

  • in

    Why healthcare spending was at the center of the US government shutdown battle

    The federal government shut down on Wednesday in part, due to a battle between Democrats and Republicans over healthcare spending.Democrats had said that they would not vote for legislation to keep the government open unless Donald Trump and Republicans, who hold the majority in Congress, agreed to reverse cuts to Medicaid and extend subsidies for Affordable Care Act plans. That did not respire in either of the votes in the Senate on Tuesday.In June, the US president approved legislation he calls his “big, beautiful bill”, which the Congressional Budget Office estimated would reduce federal Medicaid spending by $793bn and increase the number of uninsured people by 7.8 million.The savings in federal Medicaid spending will largely come from the implementation of the new requirements, which include completing 80 hours of work or community service activities per month, or meeting exemption criteria.The law also means that the premium tax credits implemented during the Covid-19 pandemic for insurance purchased through the Health Insurance Marketplace will expire at the end of 2025. That would make coverage more expensive and lead to 3.1 million more people without health insurance, according to the CBO.skip past newsletter promotionafter newsletter promotion“We are not going to support a partisan Republican spending bill that continues to gut the healthcare of everyday Americans,” Jeffries said following a negotiation with Trump and Republican leaders on Monday.Meanwhile, Trump doubled down during an Oval Office press conference on Tuesday that if the parties can’t reach an agreement, “we can do things during the shutdown that are irreversible, that are bad for them,” Trump said while speaking to reporters in the Oval Office on Tuesday afternoon. “Like cutting vast numbers of people out, cutting things that they like, cutting programs that they like.”He did not mention Medicaid or the Affordable Care Act but said: “We can do things medically and other ways, including benefits.”Still, there could be an opening for negotiation in coming weeks. The Senate majority leader, John Thune, said on the Senate floor on Tuesday that the Democrats should vote to keep the government open until 21 November and that he would be happy to fix the “ACA credit issue” before the credits expire at the end of the year. More

  • in

    What is a government shutdown and why is this year’s threat more serious?

    The federal government is once again on the brink of a shutdown, unless Congress can reach a funding agreement before the start of the new fiscal year, on 1 October.With the clock ticking and both Democrats and Republicans seemingly dug in, there is little time left to avoid a lapse in government funding. And in a sharp escalation, the White House has threatened permanent mass layoffs of government workers in the event of a shutdown, adding to the roughly 300,000 it forced out earlier this year.What is a government shutdown?If a compromise isn’t reached by midnight on 30 September, parts of the government will begin shutting down. Until Congress acts, a wide range of federal services could be temporarily halted or disrupted as certain agencies cease all non-essential functions.In a polarized Washington, with the chambers narrowly divided, shutdown threats have become a feature of recent congressional budget battles. A standoff in 2018, during Trump’s first term, resulted in a 34-day shutdown, the longest in the modern era. At the time, roughly 800,000 of the federal government’s 2.1 million employees were sidelined without pay.What’s causing the fight this time?The federal government’s new fiscal year begins on Wednesday, and Congress has yet to strike an agreement on a short-term funding bill.Republicans, who control both chambers of Congress, are refusing to compromise and in effect daring Democrats to reject a stopgap measure that would extend funding levels, mostly at current levels, through 21 November. That bill narrowly passed the House but fell short in the Senate earlier this month.Donald Trump has said he expects the government to shut down this week. “If it has to shut down, it’ll have to shut down,” he said on Friday, blaming the Democrats.Republican and Democratic congressional leaders remained at an impasse after a Monday-afternoon meeting with Trump at the White House. “I think we’re headed into a shutdown because the Democrats won’t do the right thing,” JD Vance told reporters after the summit.View image in fullscreenDemocrats, locked out of power in Washington, have little leverage, but their votes are needed to overcome the filibuster in the Senate. Democrats are demanding an extension of subsidies that limit the cost of health insurance under the Affordable Care Act and are set to expire, a rollback of Medicaid cuts made in Trump’s One Big Beautiful Bill Act, and the restoration of funding to public media that was cut in the rescissions package.Leaving the White House on Monday, the Senate Democratic leader, Chuck Schumer, said: “There are still large differences between us.”Congressional Democrats are under pressure to use their leverage to stand up to Trump and his administration. In March, Schumer lent the necessary Democratic votes to approve a Republican-written short-term funding measure without securing any concessions – a move that infuriated the party’s base.Why is this year’s threat more serious?This time, the impact on federal workers could be even more severe. In a memo released last week, the White House’s office of management and budget (OMB) told agencies not just to prepare for temporary furloughs but for permanent layoffs in the event of a shutdown.The memo directed agencies to ready reduction-in-force notices for federal programs whose funding sources would lapse in the event of a shutdown and are “not consistent with the president’s priorities”.The OMB led the administration’s earlier efforts to shrink the federal workforce as part of a broader government efficiency campaign led by Elon Musk’s “department of government efficiency”.In a statement on Thursday, AFL-CIO’s president, Liz Shuler, said government employees had “already suffered immensely” this year under the Trump administration’s vast cuts to the federal workforce. “They are not pawns for the president’s political games,” she said.Asked about the memo on Thursday, Trump blamed Democrats, saying a shutdown was what the party wanted. “They never change,” he said.At a news conference, the House minority leader, Hakeem Jeffries, said on Thursday that Democrats “will not be intimidated” by the Trump administration’s threats to fire more federal employees if the federal government shuts down. He added that his message to Russell Vought, the head of OMB, was simple: “Get lost.”What happens if the government shuts down?In the event of a full or partial government shutdown, hundreds of thousands of federal workers may be furloughed or required to work without pay. Approximately 750,000 federal employees will be furloughed each day of a government shutdown, according to an estimate by the congressional budget office released on Tuesday.Operations deemed essential – such as social security, Medicare, military duties, immigration enforcement and air traffic control – would continue, but other services may be disrupted or delayed. Mail delivery and post office operations would continue without interruption.Agencies have been releasing updated contingency plans in the event of a shutdown. The Department of Education said nearly all its federal employees would be furloughed, while most of the Department of Homeland Security workforce would remain on the job.The effect can be wide-ranging and potentially long-lasting. Previous shutdowns have closed national parks and the Smithsonian museums in Washington, slowed air travel, delayed food-safety inspections, and postponed immigration hearings.While the broader economy may not feel the effects immediately, analysts warn that a prolonged shutdown could slow growth, disrupt markets and erode public trust. More

  • in

    Senate fails to pass short-term funding bill, with both parties blaming the other for looming government shutdown – US politics live

    The Republican-controlled Senate has failed to pass a short-term funding bill that would prevent a government shutdown at the end of the month.Earlier, continuing resolution (CR) cleared the House, but ultimately stalled in the upper chamber – unable to reach the 60 votes needed to overcome the filibuster.Democrats remain resolute that they will continue to block any bill if it doesn’t include significant amendments to health care provisions. Today, senator John Fetterman, of Pennsylvania, was the lone Democrat to vote for the GOP-drawn CR. While Republican senators Lisa Murkowski of Alaska, and Rand Paul of Kentucky, joined their colleagues across the aisle and voted no.The Trump administration officially announced plans to raise the fee companies pay to sponsor H‑1B workers to $100,000, claiming the move will ensure only highly skilled, irreplaceable workers are brought to the US while protecting American jobs.“I think it’s going to be a fantastic thing, and we’re going to take that money and we’re going to reduce taxes, we’re going to reduce debt,” Trump said.Lutnick criticized the H‑1B visa program, saying it has been “abused” to bring in foreign workers who compete with American employees.“All of the big companies are on board,” Lutnick said.President Donald Trump, along with commerce secretary Howard Lutnick, unveiled a new immigration program called the “Gold Card,” which would create an expedited visa pathway for foreigners who pay $1 million to the US Treasury.If visa holders are sponsored by a corporation, they must pay $2 million.“Essentially, we’re having people come in, people that, in many cases, I guess, are very successful or whatever,” Trump said. “They’re going to spend a lot of money to come in. They’re going to pay, as opposed to walking over the borders.”After a reporter asked President Donald Trump about his thoughts on cancel culture amid surging debates about free speech, the president claimed that networks gave him overwhelmingly negative coverage, citing – without evidence – that more than 90% of stories about him were “bad.”“I think that’s really illegal,” he said.Trump told reporters that the level of negative coverage made his election victory “a miracle” and said that the networks lack credibility with the public.He also repeated a false claim that the Federal Communications Commission licenses US TV networks. While the FCC requires the owners of local television stations, which are often affiliated with national networks that produce programming, to obtain licenses, the FCC states on its website: “We do not license TV or radio networks (such as CBS, NBC, ABC or Fox) or other organizations that stations have relationships with, such as PBS or NPR.”President Donald Trump scolded House Democrats who voted against a resolution honoring slain conservative activist Charlie Kirk.In a 310-58 vote, the resolution passed nine days after a gunman assassinated Kirk while he was speaking to a crowd at Utah Valley University. Several Democrats who opposed the resolution said they condemned Kirk’s murder, as well as political violence, but could not support a figure who used his speech. Many critics have pointed out that Kirk had disparaged Martin Luther King Jr. and called the Civil Rights Act of 1964 a “huge mistake.”“Just today, the House Democrats voted against condemning the political assassination of Charlie Turk,” the president said during his remarks at the White House today. “Who could vote against that?”President Donald Trump is expected to announce a new $100,000 fee for H-1B visa applications, Bloomberg reports, in what marks the administration’s latest move to deter legal immigration.The presidential proclamation is slated to be signed today.Trump aides have previously argued that the H-1B program, designed to bring skilled foreign workers to the US, suppresses wages for Americans and discourages US-born workers from pursuing STEM fields.The additional fee would add to the already costly process to obtain an H-1B visa, which could go from about $1,700 to $4,500. About 85,000 H-1B visas are granted every year. More than half a million people are authorized to work in the US under H-1B visas. While these are temporary, and typically granted for three years, holders can try to extend them, or apply for green cards.Republican senator Ted Cruz compared Federal Communications Commission chair Brendan Carr’s threats to revoke ABC’s broadcast license to “mafioso” tactics similar to those in Goodfellas, the 1990 mobster movie.On his podcast Verdict with Ted Cruz, the Texas Republican called Carr’s comments “unbelievably dangerous” and warned that government attempts to police speech could ultimately harm conservatives if Democrats return to power.“He threatens explicitly: ‘We’re going to cancel ABC’s license. We’re going to take him off the air so ABC cannot broadcast anymore’… He says: ‘We can do this the easy way, but we can do this the hard way.’ And I got to say, that’s right out of GoodFellas. That’s right out of a mafioso coming into a bar going, ‘Nice bar you have here. It’d be a shame if something happened to it,’” Cruz said.“I hate what Jimmy Kimmel said. I am thrilled that he was fired,” Cruz said. “But let me tell you: If the government gets in the business of saying, ‘We don’t like what you, the media, have said. We’re going to ban you from the airwaves if you don’t say what we like,’ that will end up bad for conservatives.”The acting inspector general of the department of education, Heidi Semann, said that her office would be launching a probe into the department’s handling of sensitive data.It comes after several Democratic lawmakers, led by senator Elizabeth Warren, wrote to the department’s watchdog – asking her to review the Department of Government Efficiency’s (DOGE) “infiltration” of the education department.“Because of the Department’s refusal to provide full and complete information, the full extent of DOGE’s role and influence at ED remains unknown,” the letter states.In response, Semann – whose office serves as an independent entity tasked with rooting out waste, fraud and abuse within the agency – said the following: “Given the sensitive nature of the data it holds, it is crucial that the [education] Department ensures appropriate access to its data systems and maintains effective access controls for system security and privacy protection purposes.”

    On Capitol Hill today, a flurry of action and inaction, after the House passed a stopgap funding bill – written by Republicans to stave off a government shutdown – only for Democrats to reject it in the Senate. In kind, GOP lawmakers blocked a Democratic version of the bill. Funding expires at the end of September, and with congressional lawmakers on recess next week the threat of a shutdown is perilously close.

    In response, legislators from both sides of the aisle have spent the day shirking blame and claiming the other party would be responsible for a shutdown on 1 October. Senate majority leader John Thune said that “Democrats are yielding to the desires of their rabidly leftist base and are attempting to hold government funding hostage to a long list of partisan demands.” While his counterpart, Chuck Schumer said that Republicans “want” the shutdown to happen. “They’re in the majority. They don’t negotiate, they cause the shutdown – plain and simple,” he said.

    Also on the Hill today, a resolution honoring murdered conservative activist Charlie Kirk passed the House of Representatives with bipartisan support, but only after causing considerable consternation among Democrats. All Republicans in attendance voted in favor of the resolution, which describes Kirk as “a courageous American patriot, whose life was tragically and unjustly cut short in an act of political violence”. Ninety five Democrats supported the resolution, while 58 opposed it. Several Democrats who opposed the resolution said they condemned Kirk’s murder, and political violence at large, but could not support a figure who used his speech.

    Meanwhile, a federal judge dismissed Donald Trump’s $15bn defamation lawsuit against the New York Times over its content. US district judge Steven Merryday said Trump violated a federal procedural rule requiring a short and plain statement of why he deserves relief. He gave Trump 28 days to file an amended complaint, and reminded the administration it was “not a protected platform to rage against an adversary”.

    The Trump’s administration also asked the supreme court on Friday to intervene in a bid to refuse to issue passports to transgender and non-binary Americans that reflect their gender identities. It’s one of several disputes in regard to an executive order Trump signed after returning to office in January that directs the government to recognize only two biologically distinct sexes: male and female. A lower court judge had blocked the policy earlier this year, and an appeals court let the judge’s ruling stay in place.

    And on foreign policy, Donald Trump and Xi Jinping “made progress on many very important issues” during their call this morning, according to a Truth Social post from the president. Trump said that the pair discussed “trade, fentanyl, Russia’s war in Ukraine, and the TikTok deal”. The president also said he and Xi would have a face-to-face meeting at the APEC summit in South Korea next month, he would travel to China “in the early part of next year”, and Xi would also come to the US at a later date.
    A top donor to Donald Trump and other Maga Republicans has privately mocked the US president’s longtime position that he has an upper hand in trade negotiations with China, in a sign that even some loyal supporters have been uneasy with the White House strategy.Liz Uihlein, the billionaire businesswoman who co-founded office supply company Uline with her husband, Richard, sent an email to her staff earlier this year that contained a cartoon in which Trump can be seen playing cards with Chinese president Xi Jinping. In the cartoon, Trump claims: “I hold the cards”, to which Xi responds: “The cards are made in China.”The email, seen by the Guardian, appears to have been sent in April by an administrative assistant on Liz Uihlein’s behalf. Uihlein prefaced the cartoon with a short remark: “All – The usual. Liz”.The barb is significant because it was sent by an important political ally to Trump and his movement. Liz and Richard Uihlein were the fourth largest political donors in the presidential election cycle, having given $143m to Republicans, according to Opensecrets, which tracks political giving.A Uline spokesperson said Liz Uihlein had no comment. A White House spokesperson did not respond to a request for comment.Also on Capitol Hill today, Alex Acosta, the former US attorney for southern Florida who also served as the labor secretary during the first Trump administration, testified before lawmakers on the House Oversight Committee today in a closed-door deposition.Acosta negotiated the deal in 2008 that saw Jeffrey Epstein plead guilty and receive no federal charges for soliciting minors. At the time he served a 13-month prison sentence in a county jail and received various work privileges.Then, in 2019, Epstein was eventually charged with federal sex trafficking crimes, which shone the spotlight back on Acosta – now the labor secretary under Trump – who resigned from his cabinet position.The 2008 plea deal has come up again throughout the Oversight committee’s investigation into the handling of the Epstein case. Democrats on the committee have called it a “sweetheart deal”, and after today’s deposition several of those lawmakers characterised Acosta was “evasive” and “non-credible”.“It’s very difficult to get straightforward answers out of him regarding what happened during this time, what he knew of the relationship between Donald Trump and Jeffrey Epstein,” said congresswoman Yassamin Ansari, a Democrat who sits on the Oversight committee.Earlier today, Republican congressman James Comer said that the committee, which he chairs, has begun receiving documents from the treasury department relating to the Epstein case.“When we met with the victims, and we said, ‘what can we do to expedite this investigation to be able to provide justice for you all?’, they said, ‘follow the money, follow the money’,” Comer told reporters today.A reminder, government funding lapses on 30 September. The Senate isn’t back from recess until 29 September, meaning that any vote to avoid a shutdown would need to happen less than 48 hours before the deadline.In response, congressional Democrats just wrapped a press conference where they said that any blame for a government shutdown lays squarely at the feet of their Republican colleagues.“The bare minimum here is for Republican leadership to simply sit down with Democratic leadership to hammer out a path forward. Now they’re leaving town instead of sitting down with Democrats,” said Democratic senator Patty Murray, who serves as the vice-chair of the Senate appropriations committee.Minority leader Chuck Schumer said today that plans by House lawmakers to not return from recess until 1 October – effectively stymieing Democrat’s hopes of negotiations before government funding expires at the end of this month – was proof that Republicans “want” the shutdown to happen.“They’re in the majority. They don’t negotiate, they cause the shutdown – plain and simple,” Schumer added.Per my last post, on the Senate floor today, majority leader John Thune said he is unlikely to call back lawmakers next week (when Congress is on recess). Instead, he shirked any blame for government funding expiring, and said the“ball is in the Democrats’ court” now.“I can’t stop Democrats from opposing our nonpartisan continuing resolution. If they want to shut down the government, they have the power to do so,” the South Dakota Republican said. “If they think they’re going to gain political points from shutting down the government over a clean, non partisan CR, something they voted for 13 times under the Biden administration, I would strongly urge them to think again.” More

  • in

    Democrats reject spending bill over healthcare cuts as shutdown looms

    The US federal government drew closer to a shutdown on Friday, after Democrats made good on their vow not to support a Republican-backed measure that would extend funding for another two months because it did not include provisions to protect healthcare programs.The GOP-controlled House of Representatives had in the morning approved a bill to extend government funding through 21 November on a near party-line vote, but Democrats swiftly blocked it in the Senate, where most legislation must receive at least some bipartisan support. Republicans, in turn, rejected a Democratic proposal to extend funding through October while preventing cuts to healthcare programs, setting up a standoff that could see federal agencies shutter and workers sent home just nine months into Donald Trump’s term.“Senators will have to choose: to stand with Donald Trump and keep the same lousy status quo and cause the Trump healthcare shutdown, or stand with the American people, protect their healthcare, and keep the government functioning,” the top Senate Democrat, Chuck Schumer, said before the votes.Democrats have seized on the annual government funding negotiations to use as leverage against Trump’s policies and particularly cuts to Medicaid, the healthcare program for poor and disabled Americans, which Republicans approved in the One Big Beautiful Bill Act earlier this year. They are also demanding an extension of subsidies for Affordable Care Act (ACA) insurance plans that are set to expire at the end of 2025, after which healthcare costs for millions of Americans are expected to increase.“We don’t work for Donald Trump, we don’t work for JD Vance, we don’t work for Elon Musk, we work for the American people,” Hakeem Jeffries, the top House Democrat, said before the chamber voted. “And that is why we are a hard no on the partisan Republican spending bill because it continues to gut the healthcare of everyday Americans.”Republicans have backed a “clean” continuing resolution that extends funding without making significant changes to policies. Both parties’ proposals include millions of dollars in new security spending for judges, lawmakers and executive branch officials in response to the conservative activist Charlie Kirk’s killing.The stopgap measures are intended to give congressional appropriators more time to pass the 12 bills that authorize federal spending for the fiscal year.John Thune, the Republican Senate majority leader, called the Democratic proposal “fundamentally unserious” in a speech following the House vote.“Instead of working with Republicans to fund the government through a clean, nonpartisan continuing resolution, so that we can get back to bipartisan negotiations on appropriations, Democrats are yielding to the desires of their rabidly leftist base and are attempting to hold government funding hostage to a long list of partisan demands,” he said.Under pressure from their base to oppose Trump and still smarting from a disappointing performance in last year’s elections, the spending impasse will pose a major test of Democratic unity across Congress.Maine’s Jared Golden was the only Democrat to vote for the Republican spending bill in the House, while Washington’s Marie Gluesenkamp Perez missed the vote but said she supported it. In the Senate, only Pennsylvania’s John Fetterman voted for the Republican spending bill. All represent states or districts won by Trump last year.Of greater concern to Democrats is whether Schumer, the Senate minority leader, will be able to resist pressure not to allow a shutdown. A similar spending deadlock took place earlier in the year but ended on a sour note for Democrats after Schumer encouraged his colleagues to vote for a Republican bill to keep the government funded, arguing a shutdown would be “devastating”.House Democrats opposed that bill and felt burned by Schumer’s compromise, but are once again counting on the Senate minority leader not to back down.“I think Senator Schumer knows he’s got to hold the line there. We’ll see what this negotiation brings, but this is about fighting for healthcare. That’s an easy one for them to give us,” said the California congressman Ami Bera after the vote.Democrats writ large believe they have leverage they need against a president who opinion polls show is growing unpopular with many voters, even though government shutdowns can bring their own risks for the party that instigates them.“I don’t know how you could be in control of the House, the Senate, the executive, have more votes on the supreme court, and then blame the other party that’s completely not in power. That’ll be a new one,” said the Florida congressman Jared Moskowitz. Asked if he was concerned about Schumer’s resolve to oppose the Republican bill, he replied: “I’m Jewish, I have a lot of anxiety, all the time.”The appropriations process is historically bipartisan, but the progressive Washington congresswoman Pramila Jayapal warned that even if a spending deal is reached, Republicans have damaged their trust with Democrats by actions like cancelling funding Congress had approved for foreign aid and public media.“We need to make sure that once we approve a budget, that they don’t just go back and do a partisan vote to strip money away or close an agency. So, there’s got to be some provision in there about making and keeping a promise, versus getting us to vote for something, saying that they’re going to do something, and then changing their mind the very next day and passing a partisan rescission package,” she said.There is little time left for Congress to find a compromise. Both chambers are out of session next week for the Rosh Hashanah holiday, and on Friday afternoon, the House’s Republican leaders cancelled two days in session that had been scheduled for the end of September, denying the Democrats the opportunity for another vote on the issue before funding lapses. More