US government shutdown to cost $400m per day
- The U.S. government ceased many of its operations on Wednesday following a failure by Congress and the White House to agree on a funding deal, sparking a potentially prolonged standoff.
- The shutdown is projected to furlough 750,000 federal employees, halt the release of economic reports, disrupt air travel, and suspend scientific research, incurring a daily cost of $400 million.
- The impasse arose after the Senate rejected a short-term spending bill, as Democrats insisted on including an extension of health benefits, which Republicans wished to address separately.
- President Donald Trump and his budget director warned of potential job cuts, while financial markets, including Wall Street futures and gold prices, reacted negatively to the uncertainty.
- The highly polarized political environment, with Democrats seeking a victory on healthcare funding ahead of the 2026 midterm elections, suggests a difficult path to resolution.