US federal government shutdown: What does it mean for the US government as Donald Trump and Congress fail to reach agreement?
The US federal government has been plunged into shutdown after President Donald Trump and Congress failed to meet an agreement to keep programmes and services running.
The US is facing a period of uncertainty after Trump and Congress failed to reach a funding agreement to keep services running into the new fiscal year by the deadline of Wednesday, October 1. As a result, 750,000 federal government workers will be furloughed amid the shutdown of services across the country.
There is a fear that some of those workers could be fired and offices shuttered permanently by President Trump, after the US leader said that he would “do things that are irreversible, that are bad” in retaliation of an agreement not being reached.
What services are impacted by the US federal government shutdown?
Education, environment and other services are likely to be affected by the showdown, while Trump’s deportation agenda is expected to go ahead as planned.
Services impacted by previous federal government shutdowns include the National Park Service, the Food and Drug Administration, as well museums across the country closing its door altogether. Essential services, such as inpatient and emergency medical care, air traffic control, law enforcement, border security, disaster aid, and power grid maintenance, will continue but may face added pressure and delays as staff work without pay.
The federal government shutdown is expected to have a huge impact on the US as a whole, with an economic jolt possibly being felt in a matter of days. Previous shutdown have only lightly impacted markets, but with no agreement on the horizon effects may be more severe, according to Goldman Sachs analysis.
Why has the US federal government shutdown happened?
This marks the third time President Trump has presided over a federal government shutdown, but is the first of this White House term.
Democrats in Congress have been demanding funding for healthcare subsided that are expiring and impacting millions of people in the US under the Affordable Care Act. This has caused insurance premiums to spike across the country. Republicans have refused to negotiate on a deal, with representatives advising Trump to not engage in any talks.
At the same time, Trump’s Office of Management and Budget have prepared not only by executing plans for furlough, but also for mass firing of federal workers. It comes as part of the Trump administration’s aim to shrink the federal government. He previously introduced the Department of Government Efficiency to cut spending within federal government.