With US government funding set to expire at midnight on Tuesday, Republicans and Democrats in Congress show no signs of agreeing to a temporary budget fix that would avert a government shutdown.

President Donald Trump will meet with congressional leaders at the White House on Monday in a last-ditch effort to end the impasse. However, Democrats have signaled they are unwilling to simply agree to the Republican-backed short-term funding plan without some adjustments.

If Congress fails to act, thousands of federal government employees could be furloughed, from NASA to national parks, and various services would be disrupted. Federal courts may have to close, and grants to small businesses could be delayed.

However, this is a dispute about more than just temporary funding. It is a continuation of a dispute that has been brewing since Trump took office in January and refused to spend billions of dollars already approved by Congress.

Democrats intend to use the threat of a government shutdown to restore some of that funding and shore up healthcare subsidies that are set to expire at the end of the year. At stake is the $1.7 trillion in discretionary spending that funds agency operations, which is set to expire at the end of the fiscal year on Tuesday if Congress doesn't extend it.

The budget represents about a quarter of the government's $7 trillion budget, with most of the remainder allocated to healthcare and pension programs and interest payments on the $37.5 trillion debt.

The spotlight will be on Trump, a Republican who blames Democrats for the impasse, and Senate Democratic Leader Chuck Schumer, who must keep his members in line to achieve his party's goals.

The Republican-controlled House of Representatives narrowly passed a bill on September 19 to keep government agencies funded through November 21. The Senate, which needs 60 votes to approve the bill, promptly killed it.

CHRONIC SHUTDOWN

There have been 14 partial government shutdowns since 1981, most lasting only a few days. The last shutdown was also the longest, lasting 35 days in 2018 and 2019 due to immigration disputes.

This time, healthcare is a key issue. About 24 million Americans covered by the Affordable Care Act will see their costs increase if Congress doesn't extend the temporary tax breaks passed in 2021.

Schumer said Sunday there will be "tremendous pressure" on Republicans to agree to negotiations to reverse the healthcare cuts, which he said threaten to close rural hospitals and drastically increase insurance premiums. "We don't want a shutdown," he said on NBC's "Meet the Press." "We hope they sit down and have serious negotiations with us."

Senate Republican Leader John Thune has left open the possibility of addressing healthcare issues, but said Congress must first pass a stopgap spending bill to prevent a shutdown.

"You can't do this on Tuesday, and you can't do it while you're holding the American people hostage with a government shutdown," he said on "Meet the Press." Some Democratic aides in Congress have suggested lawmakers could support a short funding bill if Republicans agree to hold a vote in the coming weeks on extending the Affordable Care Act tax credit.

However, House Democratic Leader Hakeem Jeffries dismissed that idea on Friday, saying Republicans couldn't be trusted. "Now, we're supposed to believe, with a wink and a nod, that Republican leaders are actually interested in addressing the Affordable Care Act issue?" he said. (alg)

Source: Reuters