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Partisan gridlock leaves 42 million without aid as shutdown racks up $14 billion in losses

Partisan gridlock leaves 42 million without aid as shutdown racks up $14 billion in losses

Bitget-RWA2025/10/29 14:14
By: Bitget-RWA
- 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

The ongoing U.S. government shutdown has reached its 29th day, with moderate Democrats beginning to show willingness to negotiate, even as deep disagreements over healthcare funding and budget priorities persist. Essential services such as the Supplemental Nutrition Assistance Program (SNAP) have already been disrupted, resulting in 42 million Americans losing access to food assistance as of November 1, according to

. Economic losses from the shutdown could reach $14 billion, increasing the urgency for Congress to find a solution, as reported by .

The impasse, caused by a standoff between the two parties over budget allocations, has hit low-income households the hardest. Twenty-five states have announced reductions in SNAP benefits, and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) is also at risk, according to US News. In states like Louisiana, New Mexico, and Oregon, more than 16% of residents depend on these programs. Meanwhile, unions representing federal employees, including the American Federation of Government Employees, are calling for immediate government funding and the restoration of pay for 820,000 workers, as highlighted by

.

Partisan gridlock leaves 42 million without aid as shutdown racks up $14 billion in losses image 0

Political negotiations remain at a standstill. Senate Majority Leader John Thune (R-S.D.) has rejected temporary funding bills that would pay select groups of workers, insisting that a full reopening of the government is the only way forward. President Donald Trump has also placed responsibility on Democrats, urging them to pass a straightforward continuing resolution, according to

. However, Senate Minority Leader Chuck Schumer (D-N.Y.) and other Democrats are holding out for a deal that extends enhanced Affordable Care Act (ACA) subsidies, which are set to expire at the end of the year, as Fox Business reports.

The economic impact, as assessed by the Congressional Budget Office (CBO), becomes more severe with each day the shutdown continues. A shutdown lasting six weeks could lower annual GDP growth by 1.5 percentage points, while an eight-week closure could reduce it by 2.0 points. Although most of the economic damage would be recovered after the shutdown ends, between $7 billion and $14 billion in value could be lost permanently, according to Fox Business. House Budget Committee Chairman Jodey Arrington (R-Texas) has blamed Democrats for the crisis, accusing them of prioritizing politics over the needs of families, as reported by Fox Business.

Despite the gridlock, there are signs of bipartisan cooperation. Senate Republicans such as Josh Hawley (R-Mo.) have joined with Democrats to support continued SNAP funding, with Hawley’s proposal attracting 10 Republican and one Democratic co-sponsor, as noted by Newsmax. House Speaker Mike Johnson (R-La.) has suggested paying federal workers in advance, a proposal that Democrats are reviewing, according to Newsmax. Additionally, moderate Democrats like Sens. Dick Durbin (D-Ill.) and Elizabeth Warren (D-Mass.) have endorsed standalone measures to address the most severe consequences of the shutdown, indicating a possible shift in the negotiations, Newsmax reports.

The outcome remains unclear. Thune has suggested that a meeting between Trump and Democratic leaders to discuss ACA subsidies could take place, but only after the government is reopened, according to Newsmax. With the holidays approaching and public dissatisfaction rising, the pressure on both parties—and the millions who depend on federal programs—continues to intensify.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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