On Tuesday, the U.S. House of Representatives passed a stopgap plan to avoid a government shutdown, allowing the government to remain funded through September 30. The move, approved mostly along party lines, was seen as a way to give President Donald Trump the breathing room he needs to push forward with his agenda, which includes tax cuts, mass deportations, and increased energy production.
However, the situation now shifts to the Senate, where Republicans also hold a majority, but Senate Democrats will play a crucial role. The deadline for passing the measure and avoiding a shutdown is Friday night, and House Speaker Mike Johnson has called on Senate Democrats to act to prevent the government from closing, warning that they would be responsible for any shutdown.
The looming threat of a shutdown adds to the ongoing economic turmoil, exacerbated by Trump’s trade war and significant cuts to federal spending, which have already led to job losses in various sectors. Wall Street, initially hopeful after Trump’s election, has been shaken by concerns that his tariffs could stoke inflation and trigger a recession, causing a notable market sell-off over the past few weeks.
If the Senate fails to pass the plan, it could result in economic disruptions, including widespread furloughs of public employees and the closure of federal agencies, deepening the strain on the U.S. economy.