US President Donald Trump, speaking on the looming budget crisis, said a government shutdown was “not inevitable” but “very likely.”
Although Trump said, “We don't want the government to shut down,” the crisis is growing due to the deep disagreement between the parties.
Democrats in Congress are demanding a reversal of healthcare spending cuts made by Republicans over the summer and an extension of Obamacare subsidies expiring this year. Republican leaders are insisting on passing only the House bill that would fund the government through November 21st. Both sides blame each other for the impasse, and there is no sign of a resumption of talks.
If the shutdown goes ahead, it's estimated that more than 750,000 federal employees will be furloughed, costing approximately $400 million per day. The Congressional Budget Office has warned that a prolonged shutdown could lead to layoffs.
As the crisis continues, Trump's sharing of an AI-generated insulting video targeting Democratic leaders on social media has sparked outrage. Democrats described the move as a “deliberate provocation” following a meeting at the White House.
As the US government faces the risk of a shutdown starting October 1, political tensions appear to be escalating.
*This is not investment advice.
