WASHINGTON, Oct 1 (AFP): The US government began shutting down Wednesday after lawmakers and President Donald Trump failed to break a budget impasse during acrimonious talks that hinged on Democratic demands for health care funding.
Wall Street stocks mostly fell early Wednesday. About 15 minutes into trading, the Dow Jones Industrial Average was flat at 46,398.42.
Republicans and Democrats immediately blamed each other for the deadlock that will impact hundreds of thousands of government workers and the millions of Americans who use the services they provide.
The shutdown, which will stop work at multiple federal departments and agencies, comes as deep partisan divisions in Washington have raised fears over the length and consequences of the halt.
Trump threatened to punish Democrats and their voters by targeting progressive priorities and forcing mass public sector job cuts during the first stoppage since the one during his previous term.
"So we'd be laying off a lot of people that are going to be very affected. And they're Democrats, they're going to be Democrats," Trump told reporters, adding a "lot of good can come down from shutdowns."
Multiple US embassies announced on X that their accounts would only be updated with "urgent safety and security information", while NASA said it was "CLOSED due to a lapse in Government funding."
Government operations began grinding to a halt at 12:01 am (0401 GMT) Wednesday, after a frenetic but ultimately failed bid in the Senate to rubber-stamp a short-term funding resolution already approved by the House of Representatives.
Democratic leaders Chuck Schumer and Hakeem Jeffries said in a statement that "Trump and Republicans have now shut down the federal government because they do not want to protect the health care of the American people."
"Democrats remain ready to find a bipartisan path forward to reopen the government", but will need a "credible partner," said the statement published just after the deadline passed.
The shutdown will not affect vital functions like the Postal Service, the military and welfare programs like Social Security and food stamps.
But up to 750,000 workers could be sent home each day and would not be paid until the shutdown was over, according to the Congressional Budget Office.
