Government Shutdown Looms as Trump and Democrats Clash Over Funding

As the October 1, 2025, deadline for a government funding bill approaches, President Donald Trump has warned that a government shutdown is likely unless Democrats agree to his terms. In a recent phone interview with CBS News, Trump expressed frustration, stating, “I just don’t know how we are going to solve this issue.” With negotiations stalled, the risk of a shutdown grows, potentially disrupting federal programs and services.

Trump’s Stance and Strategy

Trump is confident that the public will support him if a shutdown occurs, believing Democrats will face political consequences for not cooperating. He accused Democrats of ignoring “fraud, waste, and abuse” in government spending and insisted that any healthcare discussions must focus on preventing undocumented immigrants from accessing public benefits. “The Democrats, incredibly, want to keep their old policies of open borders, and we’re not going to have it,” Trump said.

A source close to the president revealed to CBS News that Trump sees a potential shutdown as an opportunity to use executive power to cut government programs and salaries he considers unnecessary. This aligns with a memo from the White House’s Office of Management and Budget, which instructed federal agencies to prepare for possible layoffs. The memo, obtained by CBS News, advises agencies to issue reduction-in-force notices for employees in programs with discretionary funding that ends on October 1 or those not aligned with Trump’s priorities.

Democrats’ Response and Priorities

Democrats have strongly rejected Trump’s claims, particularly his assertion that they support healthcare benefits for undocumented immigrants. House Minority Leader Hakeem Jeffries clarified on MSNBC, “Donald Trump knows, or at least I think he knows, that current federal law prohibits using taxpayer dollars for undocumented immigrants in connection with their health care.” Democrats are instead focused on protecting healthcare for Americans, especially by extending Affordable Care Act (ACA) insurance subsidies.

The Democratic proposal includes a permanent extension of enhanced tax credits for ACA marketplace insurance buyers, restoring Medicaid funding cut in Trump’s earlier legislation, and reinstating funding for public broadcasters. These priorities, particularly the ACA subsidies, are non-negotiable for Democrats, creating a significant divide in negotiations.

Congressional Efforts and Deadlines

The House recently passed a Republican-led continuing resolution to fund the government until November 21, but it failed to gain traction in the Senate, where 60 votes are needed to pass most legislation. Democrats countered with their own proposal to extend funding until October 31 while addressing their healthcare priorities, but it also fell short. Senate Majority Leader John Thune emphasized that the House-passed bill is ready for a vote and blamed Democrats for the impasse, stating, “We need eight Democrats to pass it through the Senate.”

Meanwhile, Senator Amy Klobuchar, a Democrat from Minnesota, highlighted the urgency of addressing healthcare costs, noting that Americans face rising insurance premiums. “This is an opportunity for the country because of one big problem, and that is that the Republicans have created a health care crisis,” she said on CBS’s Face the Nation.

Upcoming Talks

Trump is set to meet with congressional leaders, including Thune, Senate Minority Leader Chuck Schumer, House Speaker Mike Johnson, and Jeffries, on Monday to try to resolve the deadlock. This follows Trump’s cancellation of an earlier meeting, which he called off due to what he described as Democrats’ “unserious and ridiculous” demands.

What’s at Stake

With the Senate returning from a weeklong recess, time is running out to avoid a shutdown. A failure to reach an agreement could lead to furloughs for federal workers and the suspension of non-essential government services. The outcome of Monday’s meeting will be critical in determining whether Congress can bridge the gap between Trump’s push for spending cuts and immigration restrictions and Democrats’ focus on healthcare protections.

As both sides dig in, the American public awaits a resolution to prevent the disruptions a government shutdown would bring.