Partisan Deadlock Starves 42M as Shutdown Costs $14B

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Wednesday, Oct 29, 2025 10:10 am ET2min read
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- The 29-day U.S. government shutdown deepens as partisan divides over healthcare subsidies and funding priorities persist, despite moderate Democrats signaling openness to compromise.

- SNAP and WIC program cuts affect 42 million Americans, with 25 states reducing food aid and 16%+ population reliance in states like Louisiana and Oregon.

- Economic losses reach $14B, with CBO projecting 1.5-2.0% GDP growth reduction for six- to eight-week shutdowns, risking permanent economic damage.

- Bipartisan efforts emerge, including GOP-backed SNAP funding bills and GOP-Democratic pay proposals, as moderate Democrats push standalone relief measures.

- Resolution remains uncertain, with Trump urging a "clean" funding deal and Thune demanding full government reopening before ACA subsidy talks.

The U.S. government shutdown, now in its 29th day, faces a potential turning point as moderate Democrats signal openness to compromise, though partisan divides over healthcare subsidies and funding priorities remain entrenched. The crisis has already disrupted critical programs like the Supplemental Nutrition Assistance Program (SNAP), leaving 42 million Americans without food aid benefits as of Nov. 1, according to a US News report. With the economy projected to lose up to $14 billion due to the shutdown, pressure mounts on Congress to negotiate a resolution, according to a Fox Business analysis.

The shutdown, driven by a stalemate between Republicans and Democrats over funding priorities, has disproportionately affected low-income families. Twenty-five states have announced plans to cut SNAP benefits, and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) also faces lapses, as the US News report noted. Louisiana, New Mexico, and Oregon, among others, have over 16% of their populations reliant on these programs. Meanwhile, federal workers' unions, including the American Federation of Government Employees, have demanded immediate action to fund the government and restore paychecks for 820,000 employees, according to a Newsmax report.

Political leaders remain deadlocked. Senate Majority Leader John Thune (R-S.D.) has dismissed short-term "carveout" bills to pay specific workers, insisting that reopening the government in full is the only solution. President Donald Trump has similarly shifted blame to Democrats, urging them to approve a "clean" continuing resolution, according to ABC News live updates. However, Democrats, led by Senate Minority Leader Chuck Schumer (D-N.Y.), refuse to accept any funding deal that does not extend enhanced Affordable Care Act (ACA) subsidies set to expire at year-end, the Fox Business analysis found.

The economic toll, as analyzed by the Congressional Budget Office (CBO), grows starker with each passing day. A six-week shutdown could reduce annualized GDP growth by 1.5 percentage points, while an eight-week shutdown could slash it by 2.0 points. Though most losses would reverse post-shutdown, an estimated $7 billion to $14 billion in economic value would be permanently lost, according to the Fox Business analysis. House Budget Committee Chairman Jodey Arrington (R-Texas) has framed the crisis as a Democratic failure, accusing them of "playing politics" while families suffer, as noted in the same Fox Business coverage.

Bipartisan efforts, however, are gaining traction. Senate Republicans like Josh Hawley (R-Mo.) have joined a rare cross-party push to preserve SNAP funding, with Hawley's bill receiving 10 GOP co-sponsors and one Democrat, the Newsmax report observed. House Speaker Mike Johnson (R-La.) has proposed upfront pay for federal workers, a move Democrats have cautiously reviewed, the Newsmax report added. Meanwhile, moderate Democrats, including Sens. Dick Durbin (D-Ill.) and Elizabeth Warren (D-Mass.), have backed standalone bills to mitigate the shutdown's worst effects, signaling a potential shift in the deadlock, according to Newsmax.

The path to resolution remains uncertain. While Thune has hinted at a possible meeting between Trump and Democrats to address ACA subsidies, such talks are contingent on the government reopening first, the Newsmax report noted. With the holiday season approaching and public frustration mounting, the stakes for both parties—and the millions relying on federal aid—have never been higher.

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