Senate blocks short-term funding bill, raising odds of government shutdown 

On September 19, the Senate rejected both Republican and Democratic short-term spending proposals, heightening the chances of a federal government shutdown set to begin on October 1, at 12:01 a.m.

The Republican measures, which cleared the GOP-controlled House earlier in the day by a 217-212 vote, fell short of the Senate’s 60-vote threshold on a 44-48 tally. Sen. John Fetterman of Pennsylvania was the only Democrat to support it, while Senators Rand Paul of Kentucky and Lisa Muroqsku of Alaska opposed. A Democratic alternative also failed, with a 47-45 vote primarily along party lines, as seven Republicans missed the vote. 

While the collapse of both measures leaves Congress without a clear path forward,  lawmakers are preparing for a partial recess next week. Unless the chambers agree on the same legislation and secure President Donald Trump’s signature, large portions of the federal government will shutter at the start of the new fiscal year.

The House-passed GOP bill would have extended funding through Nov. 21 at current levels. Just one Democrat, Rep Jared Golden of Maine, crossed party lines to support it, while Republican Reps. Thomas Massie of Kentucky and Victoria Spartz of Indiana joined Democrats in opposition. Democrats countered with their own measure funding the government through Oct 31, which included extensions of Obamacare subsidies, reversal of Trump-era Medicaid cuts, restoration of foreign aid, and money for public broadcasting. 

Speaking to reporters Friday, Trump signaled the shutdown threat could become a reality, while House Speaker Mike Johnson, R-La., defended the Republican proposal, calling it a “clean” continuing resolution. 

Notably, a shutdown would force hundreds of thousands of federal employees, including members of the military, to go unpaid. Mandatory services such as Border Patrol, the Postal Service, and Social Security would continue to operate. 

With Congress divided and the clock ticking, uncertainty remains over whether lawmakers can strike a bipartisan deal to keep the government open. Further, small business owners could face delays in federal loan programs, grant processing, and regulatory approvals, while uncertainty around government services may complicate planning and cash flow as the fiscal year begins.