Senate Rejects Funding Bills, Looming Government Shutdown

The Senate has officially entered a shutdown stalemate after rejecting both a Republican and a Democratic short-term funding proposal on Friday. This decision has left no clear pathway to avoid a government shutdown by midnight on September 30. Senate Majority Leader John Thune warned that the only option remaining is to approve the House-passed Republican funding bill.

Republicans rejected a Democratic counterproposal in a 47-45 vote, which linked government funding through October 31 with health care policies and limits on President Donald Trump’s ability to withhold funds approved by Congress. Democrats plan to use this vote to criticize Republicans for opposing the restoration of Medicaid cuts and the extension of health insurance subsidies expiring later this year.

Senate Minority Leader Chuck Schumer accused Republicans of being out of touch with constituents, highlighting fears of hospital closures and rising healthcare costs. Democrats also rejected the GOP stopgap bill in a 48-44 vote, with only one Democrat, Sen. John Fetterman, supporting it.

House members were advised that planned sessions on September 29 and 30 were canceled, meaning the House would not be able to act quickly even if a compromise were reached in the Senate. Republicans have suggested that Democrats are to blame for the funding lapse, with Sen. Eric Schmitt accusing Schumer of being too afraid to stop the shutdown.

Thune expressed willingness to meet with Schumer, but Democrats believe the onus is on Republican leadership to initiate negotiations. Senate Democratic appropriator Patty Murray emphasized the need for Republican leadership to engage in talks to secure Democratic support for a funding bill.

President Trump has suggested that Republicans should not even bother dealing with Democrats, despite the need for minority party votes to pass a funding bill. However, Republicans are open to negotiating on extending health insurance subsidies, which were part of Biden’s American Rescue Plan and expire on December 31.

Democrats argue that an extension cannot wait, as Americans need to make coverage decisions for next year before the subsidies expire. The fear is that even if a bipartisan deal is reached, Trump and White House budget director Russ Vought might unilaterally rescind spending decisions.

With the deadline approaching, the situation remains volatile, as both parties continue to show no signs of compromise, risking a government shutdown that could disrupt essential services and operations across the country.