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The clash between Donald Trump and Democrats in Congress over government funding intensified on Friday, as the shutdown of federal operations that has brought Washington to a standstill was set to continue into the weekend.
The Senate on Friday afternoon failed to pass White House-backed legislation to reopen the government until late November, after the vast majority of Democrats blocked the bill in the upper chamber of Congress.
The budget fight has resulted in a lapse in government funding that began early on Wednesday. The shutdown has led to the furlough of thousands of federal workers and the closure of a vast array of government facilities.
On Friday, it prevented the release of the monthly jobs report from the Bureau of Labor Statistics, a vital guide to the state of the US labour market that is closely watched by economists on Wall Street and officials at the Federal Reserve.
The shutdown also threatens a heavy economic cost. The US could lose about $7bn in economic activity for each week the shutdown continues, according to EY-Parthenon chief economist Gregory Daco. Some of that hit, such as delayed wages and postponed procurement, may be recouped once federal operations resume.
The White House has offered a more severe estimate, putting the loss to the economy at $15bn a week, according to a memo reported by Politico. Prediction markets see the shutdown lasting longer than two weeks, according to pricing on the market Kalshi.
The Office of Management and Budget has also signalled that some lost funding will not be restored, as it announced $27bn in cuts to transportation and energy programmes.
But even as the pain and impact of the shutdown began to be felt across the country, there were no signs that Trump and the Democrats were any closer to resolving the crisis and the attacks multiplied on both sides.
Overnight, the president posted a video on his Truth Social account depicting Russ Vought, his budget director, as a scythe-wielding reaper delivering destruction to a stormy US capital.
Vought on Friday morning announced $2.1bn in funding destined for infrastructure projects in Chicago would be blocked — after halting $18bn in projects for New York City earlier in the week. These cuts were targeted at cities that primarily vote for Democrats as Trump put pressure on his opponents to cave.
Karoline Leavitt, the White House press secretary, accused Democrats of launching “an intentional sabotage of our country and our people”. “This madness must end,” she said, at a briefing on Friday afternoon.
Business leaders urged lawmakers to pass the bill backed by Republicans and the White House to reopen the government.
Joshua Bolten, the chief executive of the Business Roundtable, a lobby group for top US companies, said: “A fully functional government is essential for American businesses, workers and consumers while policymakers continue working on a full-year funding package and other pressing issues.”
However, Democrats stood their ground, insisting they will only vote to reopen the government after Republicans enter talks on the fate of health insurance subsidies. These subsidies are set to stop at the end of the year, vastly increasing costs for millions of Americans.
Hakeem Jeffries, the Democratic leader in the House, said: “Donald Trump and the Republicans are not behaving responsibly, they’re not behaving in a serious manner. They don’t want to reopen the government, and they certainly do not want to address the healthcare crisis that Republicans have created.”
