Politics

Government Shutdown Looms: Will Trump’s Second Term Face a Funding Crisis?

Congress faces a shutdown as Trump and leaders fail to agree on funding; Dems want ACA subsidies.

byEditorial Staff

September 30, 2025, 7:53 AM

American flag waving in front of the U.S. Capitol building

An American flag waves proudly in front of the U.S. Capitol building, a symbol of American democracy. By MDL.

Executive Summary

A government shutdown is imminent within 24 hours, with negotiations between President Trump and congressional leaders failing to resolve a stalemate over a stopgap funding plan.

The core dispute centers on Democratic demands for extensions of enhanced Affordable Care Act (ACA) subsidies and a reversal of Medicaid cuts, which Republicans insist should not be tied to keeping the government open.

Senate Republicans plan to repeatedly vote on their seven-week funding extension without policy provisions, aiming to pressure Democrats to yield through public outcry over a shutdown.

The Story So Far

The impending government shutdown is rooted in a fundamental dispute over a stopgap funding bill, where Democrats are demanding extensions of enhanced Affordable Care Act (ACA) subsidies and a reversal of Medicaid cuts, asserting these are critical responses to issues stemming from President Trump’s “One Big Beautiful Bill Act.” Republicans, conversely, maintain that these policy provisions should not be attached to government funding and are employing a strategy of repeatedly voting on a clean funding bill, expecting that public pressure will ultimately force Democrats to yield.

Why This Matters

With a government shutdown increasingly likely due to an intractable partisan stalemate over linking healthcare provisions to federal funding, millions of Americans could face disruption and federal employees may be furloughed, signaling an early and significant challenge for President Trump’s administration and highlighting deep divisions over essential social programs.

Who Thinks What?

Democrats demand extensions of enhanced Affordable Care Act (ACA) subsidies and a reversal of Medicaid cuts, asserting these health care concessions must be tied to government funding and placing responsibility on President Trump and Republican leaders to meet these demands.

Republicans insist that Democratic demands for health care provisions should not be linked to government funding, proposing a “status-quo” seven-week funding extension and accusing Democrats of holding the government hostage, with a strategy to repeatedly vote on their plan until Democrats yield.

Congress faces an imminent government shutdown with less than 24 hours remaining until the midnight deadline on September 30, 2025. A high-stakes meeting between President Donald Trump and top congressional leaders at the White House on Monday failed to yield progress, leaving lawmakers in a bitter stalemate over a stopgap funding plan. The core dispute centers on Democratic demands for extensions of enhanced Affordable Care Act (ACA) subsidies and a reversal of Medicaid cuts, which Republicans insist should not be tied to keeping the government open.

Stalled Negotiations

The impasse follows weeks of disagreement, making a government funding lapse in President Trump’s second administration increasingly likely. Senate Republicans are preparing to give Democrats another opportunity to support their plan, which would extend government funding for seven weeks without the policy provisions sought by Democrats.

Senate Majority Leader John Thune aims to pressure Senate Minority Leader Chuck Schumer, who has so far blocked the GOP’s “status-quo” funding bill. Schumer has placed responsibility on President Trump and Republican leaders to meet Democratic demands for health care concessions.

Partisan Blame Game

Republicans accuse Democrats of holding government funding hostage, arguing that negotiations on ACA tax credits should be separate from appropriations. Senator Josh Hawley, a Republican advocate for extending these credits, stated he sees no reason to force a shutdown over the issue, expressing willingness to work on the matter outside of funding deadlines.

Conversely, Democrats have consistently linked health care concessions to government funding. They emphasize the need to address a “health care collapse,” referring to expiring ACA subsidies and Medicaid cuts enacted under President Trump’s “One Big Beautiful Bill Act.”

GOP Strategy to Force a Vote

Senate Republican leaders have indicated their strategy is to repeatedly vote on their seven-week funding extension until Democrats yield. They believe public outcry over a shutdown and the furloughing of federal employees will compel Democrats to capitulate.

Senator John Kennedy, a Republican, dismissed Democratic demands for health care negotiations before the midnight deadline as “unserious,” suggesting Democrats desire a shutdown. Senator Markwayne Mullin echoed this, stating, “There’s no other option” than to keep putting the GOP package to a vote.

Senator Kevin Cramer predicted that any potential shutdown would be brief, as he believes Democrats would not sustain a prolonged opposition to funding the government. Senator John Fetterman, a Democrat who previously voted for the GOP plan, expressed concern over the potential chaos and disruption a shutdown would cause for millions of Americans.

Outlook

With the deadline rapidly approaching, the prospects for an agreement appear dim. The entrenched positions of both parties, coupled with the Republicans’ strategy of persistent voting and the Democrats’ insistence on health care concessions, suggest a high likelihood of a government shutdown.