The US government shutdown enters Week Two amid quiet negotiations

Wed Oct 08 2025
Rajesh Sharma (2173 articles)
The US government shutdown enters Week Two amid quiet negotiations

Tours at the Capitol have reached a complete halt. The House remains firmly shut, as the Senate finds itself ensnared in a cycle of unsuccessful votes regarding a dismissed proposal to restore government operations. President Donald Trump is issuing a warning about the potential mass termination of federal workers, alongside a refusal to provide back pay for those affected. With the government shutdown now in its second week, a clear resolution remains elusive. “You have to negotiate,” Sen. Bernie Sanders, asserted late into the evening on the Senate floor. That is how it operates. However, there are currently no negotiations taking place, at least in the public eye. The Republicans, holding majority control in Congress, are confident in their political position as they resist Democratic calls to swiftly allocate funding for health insurance subsidies within any strategy aimed at resolving the shutdown. However, Democrats have also firmly entrenched themselves, believing that the American public supports them in the battle against the impending health care price increases, while attributing the shutdown to Trump. However, behind the scenes, indications of discomfort are clearly visible. A loosely organized group of senators, comprising both Republicans and Democrats, have engaged in discussions regarding potential solutions to the health insurance issue. One individual, Senator Susan Collins of Maine, has put forth her own proposals.

Two prominent Republicans, Rep. Marjorie Taylor Greene of Georgia and Sen. Josh Hawley of Missouri, have expressed that action is necessary to address the rising health insurance rates. Trump himself indicated a willingness to engage in negotiations with Democrats regarding their requests aimed at preserving health care subsidies. Earlier this week, the president stated that discussions were already in progress, expressing his desire for excellent health care for the people. However, just hours later, he altered his stance, insisting that the government must reopen first. House Speaker Mike Johnson remarked, “I spoke to the president at length yesterday about that very thing,” reflecting on his conversation with Trump on Monday. Indeed, he is eager to address and resolve issues. At its essence, the discussion centers around the health care issue that has entangled Congress for years, particularly the Affordable Care Act, commonly referred to as Obamacare, which Trump attempted, and ultimately failed, to repeal and replace during his initial term in the White House. During the COVID-19 pandemic, Congress took significant action by increasing the federal subsidies designed to assist individuals in purchasing private insurance policies on the Affordable Care Act exchanges. The federal aid gained widespread popularity, resulting in a remarkable increase in ACA enrollment, which reached an unprecedented 24 million individuals. The enhanced subsidies are scheduled to come to an end at the conclusion of the year.

Republicans assert that Congress has the capacity to address the health insurance issue in the forthcoming months. Democrats are actively working to address the issue at hand, as individuals are beginning to receive notifications regarding increased policy rates for the upcoming year. Senate Majority Leader John Thune, has stated, “there may be a path forward once the government reopens. We were always planning to have those discussions.” Democrats contend that Republicans neglected to tackle the issue of the expiring health care subsidies this summer, despite their approval of Trump’s hallmark legislation, often dubbed the One Big Beautiful Bill Act. Democrats express skepticism regarding Johnson’s decision to keep the House out of legislative session and send lawmakers back to their districts. They doubt that this approach will prompt Republicans to swiftly return to addressing the health care issue. Tens of millions of individuals are on the brink of facing significantly higher health insurance expenses. How can that be deemed acceptable in the wealthiest country in the history of the world? “said Hakeem Jeffries .” He stated “A health care crisis is unfolding before the eyes of the American people because of the actions taken by the GOP; they’re on vacation.” Federal employees have frequently faced the challenge of missing paychecks during shutdowns, and with the first pay period approaching in the next week, Trump is now issuing threats to eliminate guaranteed back pay. It would represent a significant shift from what is typically considered normal. The White House budget office, led by Russ Vought, contends that the law stipulates back pay is not guaranteed, and that Congressional approval would be necessary for it to be granted.

Simultaneously, Thune’s approach of attempting to attract additional Democratic senators to collaborate with Republicans in order to push forward the House-passed bill, which aims to fund the government without addressing health care issues, has proven ineffective. Indeed, the parties are increasingly diverging from one another. Senator Angus King, has indicated that he might reconsider his stance, aligning himself with the majority of Democratic senators who are advocating for a more favorable agreement. The Senate is anticipated to make another attempt on Wednesday to move forward with the House GOP’s bill; however, it is likely to face failure once more. Both sides have firmly entrenched themselves, each believing they are justified in their stance regarding the shutdown conflict, partly due to the insights provided by their internal data. During the weekend, Senate Democrats received a briefing indicating that their health care messaging was striking a chord with voters. The memo from Senate Majority PAC was disseminated to House Democrats and campaigns across the nation on Tuesday, carrying a straightforward message: maintain the course. The memo asserts that relieving pressure from Republicans would be a misstep. In contrast, Republicans are adhering firmly to their established strategy. A memo from the House GOP’s campaign arm advised candidates to concentrate on the economic ramifications of the shutdown, providing a detailed district-level analysis of those who would be impacted by a government shutdown.

Rajesh Sharma

Rajesh Sharma

Rajesh Sharma is Correspondent for Stock Market of South East Asia based in Mumbai. He has been covering Asian markets for more than 5 years.