US government shutdown: 750,000 jobs at risk, estimated daily loss of 400 million USD
The US government shut down most of its operations on October 1 after deep partisan divisions prevented Congress and the White House from reaching a budget deal. The shutdown, which is expected to last for a long time, immediately led to the furloughing of 750,000 federal workers and cost the economy an estimated $400 million a day.
The shutdown began hours after the US Senate rejected a short-term spending measure that was expected to keep the US government running until November 21.
The tensions revolve around the allocation of $1.7 trillion for agency operations, about a quarter of the U.S. government's $7 trillion budget, according to sources.
The main cause of the impasse was Democrats' demand to include a provision to extend health care benefits for millions of Americans that are about to expire. Democrats opposed the short-term bill because Republicans rejected the provision, arguing that the issue should be addressed separately.
Senate Democratic leader Chuck Schumer accused Republicans of trying to "bully" and failing.
Meanwhile, Senate Majority Leader John Thune (Republican) asserted that the change was due to "President Trump being in the White House", turning the budget issue into a political tool.
Federal agencies warned that the 15th shutdown since 1981 would have many consequences: Delaying the release of important economic reports, including the September jobs report; Delaying air travel and suspending scientific research; Withholding US military pay.
President Trump, who is on track to cut about 300,000 federal jobs by December, warned that the shutdown could pave the way for "irreversible" actions, including further permanent cuts to programs and staff.
Mr Trump's budget director has even threatened to permanently fire him in the event of a government shutdown.
Independent analysts warn that this confrontation could last longer than the longest shutdown in US history (35 days during Mr Trump's first term), due to a "radically polarized" political environment and the growing power of extremist wings in both parties.
Professor Robert Pape of the University of Chicago said "the rules of politics are changing radically", making it difficult for leaders to make concessions to their supporters.
