United States is on the brink of its first federal government shutdown !

The United States is on the brink of its first federal government shutdown in nearly seven years, as a bitter partisan standoff over health care subsidies and spending priorities has left Congress deadlocked just hours before a midnight funding deadline.

Unless the Senate passes a seven-week stopgap funding bill approved by the House, non-essential federal operations will halt at 12:01 a.m. Wednesday, potentially furloughing hundreds of thousands of federal workers.

The core dispute centers on Democrats' demand to extend expiring Affordable Care Act (ACA) tax credits—critical subsidies that have lowered health insurance costs for millions of low- and middle-income Americans since the pandemic. These credits are set to expire on December 31. Senate Democrats, led by Chuck Schumer, refuse to support the short-term funding measure unless the health care extension is included.

President Donald Trump and Republican leaders, however, insist the bill must remain "clean"—free of policy add-ons—and accuse Democrats of holding the government hostage. "It's now in the president's hands," Schumer said after a tense White House meeting with Trump and congressional leaders on Monday. "He can avoid the shutdown if he gets Republican leaders to go along with what we want."

Vice President JD Vance dismissed the prospect of compromise, stating bluntly: "I think we're headed into a shutdown, because the Democrats won't do the right thing."

The meeting—Trump's first with all four top congressional leaders since beginning his second term—yielded little progress. While Schumer claimed Trump was "not aware" of the looming spike in health insurance costs post-December, the president showed no willingness to negotiate. Hours later, he posted a doctored video on social media mocking Schumer and House Democratic leader Hakeem Jeffries with racist caricatures—a move Jeffries condemned as “bigotry” and vowed would not deter Democratic resistance.

Republicans hold a 53-47 Senate majority but need 60 votes to overcome a Democratic filibuster. With Senator Rand Paul expected to oppose the bill, at least eight Democratic votes would be required—a scenario that appears increasingly unlikely.

Adding to the tension, federal agencies have already activated contingency plans, outlining which services will continue and which employees will be furloughed. White House budget director Russ Vought warned of "broad layoffs" but insisted the shutdown is avoidable if Democrats "stop the hostage-taking."

For Democrats, the stance marks a strategic shift. Once staunch opponents of shutdowns as economically damaging, many now view confrontation with Trump as politically necessary. Activists have pressured leaders to take a firmer stand, especially after this summer's passage of a sweeping Republican tax bill that cut Medicaid funding.

Still, some Democrats hold out hope for a last-minute deal. "A lot can happen in this place in a short period of time," said Senator Gary Peters of Michigan.

As the clock ticks down, the nation braces for a shutdown that could disrupt everything from national parks and passport processing to food safety inspections—underscoring the high stakes of a political impasse with no clear resolution in sight.