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US govt shutdown now second longest in history - herald


US govt shutdown now second longest in history - herald

The US government shutdown, now in its 22nd day, has become the second-longest in history as the stalemate between the two parties over expiring health-care subsidies persists.

With President Donald Trump expected to leave later this week for a trip to Asia, lawmakers and congressional aides say they see a real possibility the closure could extend into November and surpass the 35-day shutdown of Trump's first term.

A Tuesday meeting at the White House between Trump and Senate Republicans appeared to only strengthen the GOP resolve to refuse to negotiate with Democrats, who have demanded as their price for reopening the government that Congress provide relief to 22 million Americans whose health-care premiums will spike in January.

"Our message has been very simple: We will not be extorted on this crazy plot of theirs," Trump said.

Senate Democratic leader Chuck Schumer and House Democratic leader Hakeem Jeffries have asked to meet with Trump before his Asia trip, but the president late Tuesday said he would only talk to them after the shutdown ends.

The Senate needs the votes of at least eight Democrats to overcome a filibuster on the House-passed temporary spending bill, which expires on November 21.

Senate Republican Leader John Thune has publicly promised Democrats a floor vote on renewing expanded Affordable Care Act subsidies after the government reopens. But Democrats, sceptical that the House would ever take such a vote, say that is not enough.

"The bottom line is that's no deal, that's a partisan plan that leaves the American people high and dry," Schumer told reporters.

The shutdown's economic disruption will deepen this week as civilian federal workers, who were partially paid earlier this month, are set to miss their first full pay cheque on Friday.

The White House has also warned that it may not be able to use extraordinary -- and potentially illegal -- accounting moves to continue to pay the military and to prevent federal food aid from drying up next month.

Anna Wong, Bloomberg Economics chief US economist, said the shutdown will cause a slight temporary increase in the unemployment rate but revert back to 4,3 percent when the government reopens.

But the effect, she noted, is particularly acute in the Washington region, with its high concentration of federal workers, as well as contractors, vendors and service businesses that won't receive back pay.

House Republicans have been home since Sept. 19 and Speaker Mike Johnson plans to keep them away from the Capitol for the rest of October so long as the shutdown persists. Johnson and his fellow Republicans have said there is no need to change a word in the stopgap bill to woo Democratic support.

"There is nothing to negotiate," Johnson told reporters Tuesday.

Johnson has said there could be talks toward the end of the year on the expiring subsidies, but conservatives are demanding concessions, including restrictions on Obamacare plans covering abortion and transgender care.

The White House meanwhile, has threatened to further punish Democrats by cancelling federal projects in majority Democratic states. Trump has equated budget director Russell Vought to the powerful Star Wars villain Darth Vader.

Already, the White House budget office has cancelled or put on hold US$28 billion in projects in these areas and attempted mass layoffs in domestic agencies such as the departments of Education, Health and Human Services and Interior.

Those layoffs have temporarily been put on hold by a judge while a battle plays out over whether spending money to conduct mass layoffs in a shutdown violates federal budget laws.

These moves have only emboldened Democrats, some of whom now demand a check on Vought's powers in any shutdown deal.

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