Vance Says US Headed for Shutdown After Talks With Democrats

Vice President JD Vance said he believes the US government is on track to shut down, seeking to pin the blame on Democrats one day before federal funding is set to lapse. “I think we’re headed into a shutdown because the Democrats won’t do the right thing,” Vance said Monday following a meeting with congressional leaders at the White House. “I hope they change their mind, but we’re going to see.” President Donald Trump met with top Democratic and Republican congressional leaders less than 48 hours before an Oct. 1 shutdown deadline. The two sides left no closer to resolving Democrats’ demands to extend health-care subsidies and reverse Medicaid funding cuts included in Trump’s signature tax legislation passed earlier this year. “If he will accept some of the things we asked, which we think the American people are for, on health care and on rescissions, he can avoid a shutdown, but there are still large differences between us,” Senate Democratic leader Chuck Schumer said after the meeting.

President Donald Trump threatened mass firings of federal workers as the US hurtles toward a shutdown with Democrats and Republicans at an impasse over funding the government.

“We may do a lot and that’s only because of the Democrats,” Trump said in response to a question about the number of government employees who could be dismissed during a shutdown. The White House last week directed agencies to draw up plans for widespread firings if the government closed down. So far, no agencies have explicitly called for terminations in their shutdown plans.

With just hours to go until a midnight deadline, the deadlock over spending threatens to paralyze many US government operations for only the 14th time in modern history, causing the suspension of services for Americans and paychecks for federal workers. Political fallout could be widespread for both Trump and Democrats ahead of next year’s critical midterm elections.

“They want to try to bully us — they are not going to succeed — into taking their partisan bill,” Senate Democratic Leader Chuck Schumer said Tuesday. “That’s why we are heading into a shutdown.”

House Speaker Mike Johnson, a Louisiana Republican, similarly predicted that a shutdown is imminent.

Although last-minute spending deals have averted several other threatened shutdowns in recent years, the stakes are especially high now, with the White House threatening to fire employees rather than furlough them, and Democratic leaders under intense pressure from progressives in the party to stand up to Trump.

Stocks fluctuated Tuesday morning with the prospect of a shutdown stoking concerns about how long it’ll go on and what impact the possibly delayed release of key economic data will have on the Federal Reserve’s upcoming interest-rate decisions.

Johnson accused Democrats of playing politics with their effort to renew health-care tax credits, saying it doesn’t have to be resolved until the end of the year when the tax credits expire.

“Open the government and then we’ll have all the discussions,” he said. “But right now that is a red herring.”

House Democratic Leader Hakeem Jeffries accused Republicans of being unwilling to participate in bipartisan negotiations, telling CNBC Tuesday that his party refuses to be a part of “a my-way-or-the-highway” approach.

Trump told Politico that he didn’t think the country would blame him if the government closed down “because people that are smart see what’s happening. The Democrats are deranged.”

Republicans in recent days have repeated the phrase “Schumer shutdown” in an attempt to pin the blame on their Democratic opponent.

“Chuck Schumer needs a Schumer shutdown and I think that’s what we’re probably careening toward,” Senate Republican Leader John Thune told CNBC on Tuesday.

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