Thousands of American workers are now on furlough after the federal government shut down at midnight on Wednesday. Here is the latest on this developing situation.

Federal Government Closed for Business

The blame game has begun in Washington, D.C. Both Democrats and Republicans are blaming each other for the government shutdown that began after the two parties failed to reach an agreement on the funding bill. This is the 15th government shutdown since 1981, as well as the third shutdown for President Donald Trump. The president's first term saw three shutdowns, including a closure that lasted 35 days from the end of 2018 and into 2019. This shutdown remains the longest in American history.

There is little hope on Capitol Hill that an agreement will be reached in the near future, as congressional Democrats advocate for an extension of the federal subsidies for Americans using health insurance through the Affordable Care Act (ACA). These subsidies are currently set to expire at the end of the year. The GOP wants to push through the funding bill without those assurances, detailing that they will work out the details of the extension for the subsidies at a later time.

There is also the threat of mass layoffs of federal workers as a result of the shutdown. Trump confirmed this possibility on Wednesday, echoing the warning in an email sent to federal employees by the White House Office of Management and Budget (OMB). Two unions representing these government employees filed a lawsuit on Tuesday in response to the warning from the OMB.

The shutdown transpired as expected when Senate Democrats blocked a proposal by the GOP to keep the government funded through November 21. There were 55 senators who voted for this temporary funding bill, five votes short of the magic number of 60 needed to prevent a Democratic filibuster.

Democratic Rep. Jared Golden was the only one in his party in the House to vote for the funding bill. Known for often breaking with his party, Golden criticized his Democratic colleagues for giving in to the demands from the far-left side of the party.

What is Next on Capitol Hill?

Congress will need to pass an appropriations bill in order to reopen the government. The bill would then be sent to President Trump for final approval. Lawmakers could also work to pass a temporary spending bill, known in political circles as a continuing resolution (CR). This would buy more time for party leaders to work out a final piece of legislation.

There is a lot of uncertainty surrounding how long this shutdown could persist. The OBM is instructing government agencies to prepare for a lengthy shutdown, along with the possibility of mass layoffs.

The Senate announced on Wednesday that it will take a break from negotiations and voting on Thursday so that its Jewish staff can observe Yom Kippur. Legislators are expected to be back on Capitol Hill for potential votes on Friday and Saturday. Should the shutdown linger through Saturday, the Senate is expected to return to work on Monday.

Meanwhile, party leaders are continuing to negotiate the terms of a potential agreement throughout the day on Wednesday.

Government Leaders Address the Issue

It is no surprise to learn that the shutdown grabbed all of the headlines in Washington, D.C. on Wednesday. Vice President JD Vance joined White House press secretary Karoline Leavitt on Wednesday afternoon for the daily press briefing. Vance falsely told reporters that Democrats wanted to shut down the government to "benefit illegal aliens." The vice president was referring to the illegal aliens receiving health care benefits. However, undocumented immigrants are not eligible for any of the ACA subsidies. In addition, the One Big Beautiful Bill Act narrowed this eligibility even further for some groups of legal immigrants.

When asked by reporters about the scope of the federal government layoffs, Leavitt did not provide specific percentages. She did acknowledge that the layoffs could happen "very soon." It is not unusual for federal employees to be put on furlough during a shutdown. However, these shutdowns have not typically triggered mass layoffs across the government sector.

House Minority Leader Hakeen Jeffries also addressed the media on Wednesday afternoon. Jeffries used the time behind the podium to hammer home that his party's goal is to protect the ACA subsidies so that Americans are not left without health care.

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