The federal government shutdown has entered its third day with no signs of resolution as both parties remain entrenched in their positions on Capitol Hill. Republicans plan to bring the same funding bill to the floor for a fourth time, while Democrats continue to demand a permanent extension of Affordable Care Act tax credits.
The Trump administration has hinted at announcing thousands of federal layoffs since the shutdown began, adding another layer of complexity to the standoff. All eyes are on both Capitol Hill and the White House for potential developments.
Republican strategy faces continued resistance
House Republicans are expected to put their short-term government funding bill on the floor for the fourth time, despite it not being expected to pass. Democrats have rejected the measure, maintaining they will settle for nothing less than a permanent extension of Affordable Care Act tax credits that expire at the end of this year.
House Speaker Mike Johnson has insisted there is nothing to negotiate and that Democrats should accept the short-term extension, which Republicans claim contains no "poison pills."
Health insurance costs could skyrocket without action
If the Affordable Care Act subsidies expire, Americans who get insurance through state marketplaces could see their premiums increase by an average of 114%, according to the Kaiser Family Foundation. The nonpartisan Congressional Budget Office estimates that millions of Americans could lose their health insurance if the subsidies are not extended.
RELATED STORY | Blame game: At federal agencies, political messages fault Democrats for shutdown
Americans have had access to these enhanced subsidies since 2021, and their expiration could create significant financial hardship during open enrollment periods.
Trump administration threatens federal layoffs
The Trump administration continues to hint at potential layoffs of thousands of federal workers, a move that senators from states with high concentrations of federal employees view as a negotiating tactic.
Senator Chris Van Hollen called the potential layoffs "a mafioso demand" from President Trump. Democrats argue such layoffs would be illegal, though it remains unclear what they could do to prevent them beyond legal challenges.
Public opinion and political calculations
A Washington Post survey of 1,000 people found that 47% of Americans blame Republicans for the shutdown, while 30% blame Democrats. The Democratic base had previously criticized party leadership for not fighting harder during past shutdown negotiations.
Democrats may see political opportunity in the standoff, particularly if health care costs rise significantly for Americans. The party out of power typically performs well in midterm elections, and Democrats are hoping to retake control of both the House and Senate in 2026.
RELATED STORY | Vance: Federal government layoffs expected as shutdown drags on
Shutdown impacts expected to worsen
While the immediate effects of the shutdown have been limited, the impacts are expected to become more severe as it continues. Programs like WIC and federal worker paychecks could be affected if the shutdown extends into next week or beyond.
Both sides will need to find a face-saving way to end the standoff, though the longer it continues, the more painful it becomes for all involved.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
