A deadline to find a solution to the budget dispute in Congress was set to midnight American time on the East Coast, at 06.00 in Sweden. Already on Tuesday, the White House budget office ordered federal authorities to prepare to stop government activities.
In a last attempt to resolve the deadlock between the Republicans and the Democrats, the parties presented budget proposals in the Senate during the night, but no proposal was accepted. The Republicans have a majority in the Senate with 53 seats, but to break the deadlock, 60 votes are required.
The shutdown is expected to heavily increase the burden on the US economy. The international market reactions on Wednesday morning have, however, been almost non-existent.
Critical of Trump
Democrats Hakeem Jeffries and Chuck Schumer place the blame for the situation on President Donald Trump and the Republicans.
"After having made life more difficult and expensive for months, Donald Trump and the Republicans have now shut down the federal activities because they do not want to protect the American people's healthcare", Jeffries and Schumer write in a joint statement, according to CNN.
On the White House website, the Democrats are instead blamed for the shutdown, and a ticking clock shows how long the shutdown has lasted.
Hundreds of thousands may be laid off
The budget dispute is about the Republicans wanting the Democrats in the Senate to vote for a temporary budget. For the Democrats to agree to this, the party demands extensions of the healthcare benefits that have provided subsidized health insurance since the pandemic.
It is unclear which authorities are affected by the shutdown, but approximately 750,000 government employees are expected to need to be laid off in the first step, according to CNN. President Donald Trump has also threatened with mass layoffs.
People with federal jobs that are considered particularly important may need to work despite the shutdown – with delayed salary payments as a result.
Similar situations have arisen before in American politics. The longest shutdown so far lasted 35 days at the turn of the year 2018-2019. The conflict then concerned President Donald Trump's demand for $5.7 billion in budget supplements to build a border wall against Mexico. Since 1976, shutdowns have occurred 21 times.
Congress is the federal legislative assembly in the USA with its seat in the Capitol in the capital Washington DC. Its work runs in two-year periods – on January 3, 2025, the 119th Congress will begin.
Congress consists of the Senate with 100 members, two from each state, and the House of Representatives with 435 seats distributed in relation to the population of the states.
In the Senate, the Republicans have 53 of the seats. South Dakota Republican John Thune is the majority leader and New York Democrat Chuck Schumer is the minority leader.
In the House of Representatives, the Republicans have 219 seats, the Democrats 213, and three are vacant. Republican Mike Johnson is the speaker and Democrat Hakeem Jeffries is the minority leader.
Congress enacts federal laws, decides on taxes and appropriations, and approves ministers and other senior officials. It can also dismiss federal officials, including the president and judges, through impeachment.
Sources: USA's Congress, House Press Gallery, AP, AFP
