Washington braced for a looming government shutdown on Tuesday, as Republicans and Democrats appeared unlikely to reach a deal that would extend funding past the midnight deadline.

The Republican-controlled Senate is expected to vote on a stopgap spending bill that has already failed once, with no signs that a second vote will be successful. Democrats want to modify the must-pass spending bill to extend health benefits for millions of Americans that are set to expire at the end of the year. Republicans say they should address the issue separately.

Meanwhile, federal agencies released detailed plans that would close offices that conduct scientific research, customer service, and other activities not deemed "essential" and send thousands of workers home if Congress does not approve a fix before funding expires at midnight (04:00 GMT on Wednesday).

Airlines warned that the shutdown could slow flights, opens a new tab, while the Labor Department said it would not release its monthly unemployment report, opens a new tab, a closely watched barometer of economic health.

Democrats are seeking to divide US President Donald Trump and his Republican allies in Congress, saying the president expressed interest in extending a tax break that lowers healthcare costs for 24 million Americans at a White House meeting on Monday.

"The decision to avoid a government shutdown is up to the president," Senate Democratic Leader Chuck Schumer said after the meeting. Vice President J.D. Vance said Democrats had indeed proposed some "reasonable" ideas at the meeting, but said they should not threaten a government shutdown to achieve their goals.

Any last-minute deal would also have to be approved by the Republican-controlled House of Representatives, which will convene on Wednesday after funding expires. Budget disputes have become a regular occurrence in Washington as the nation's politics become increasingly dysfunctional, though they are often resolved at the last minute. The government last shut down for 35 days in 2018 and 2019, during Trump's first term, over a dispute over immigration.

At issue is the $1.7 trillion that funds agency operations, which amounts to roughly a quarter of the government's total $7 trillion budget. Most of the rest is allocated to health and pension programs and interest payments on the growing $37.5 trillion debt. (alg)

Source: Reuters