Democrats, Republicans remain at an impasse despite govt. shutdown
INTERNATIONAL – USA
6 OCTOBER 2025
- Republican and Democratic lawmakers at an impasse on reopening the federal government provided few public signs of meaningful negotiations talking place to end what has so far been a five-day shutdown.
- Leaders in both parties are betting that public sentiment has swung their way, putting pressure on the other side to cave.
- Democrats are insisting on renewing subsidies to cover health insurance costs for millions of households, while President Donald Trump wants to preserve existing spending levels and threatening to permanently fire federal workers if the government remains closed.
- The squabble comes at a moment of troubling economic uncertainty.
- While the U.S. economy has continued to grow this year, hiring has slowed and inflation remains elevated as Mr. Trump’s import taxes have created a series of disruptions for businesses.
- At the same time, there is a recognition that the nearly $2 trillion annual budget deficit is financially unsustainable yet there has to be a coalition around the potential tax increases and spending cuts to reduce borrowing levels.
- The Republican President Donald Trump said in a text message, “We are winning and cutting costs big time.”
- His administration sees the shutdown as an opening to wield greater power over the budget, with multiple officials saying they will save money as workers are furloughed by imposing permanent job cuts on thousands of government workers, a tactic that has never been used before.
