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US govt shutdown nears as deal with democrats remains elusive

Business Standard

|

October 01, 2025

Washington braced on Tuesday for a fastapproaching government shutdown, as Republicans and Democrats appeared unlikely to reach an agreement that would extend funding pasta midnight deadline.

- REUTERS

‘The Republican-controlled Senate is expected to vote on a temporary spending bill that has failed once already, with no sign that a second vote will bring success.

Democrats want to modify the bill to extend health benefits for millions of Americansthatare due to expire at the end of the year. Republicans say they must tackle that issue separately.

Federal agencies, meanwhile, issued detailed plans that would close offices conducting scientific research, customer service, and other activities not deemed “essential” and send thousands of workers home if Congress does not agree on a fix before funding expires at midnight (4 am GMT on Wednesday).

Airlines warned that a shutdown could slow flights, while the Labor Department said it would not issue its monthly unemployment report, aclosely watched barometer of economic health.

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