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Political Stalemate on Healthcare Funding Triggers Nationwide Emergency

Political Stalemate on Healthcare Funding Triggers Nationwide Emergency

Bitget-RWA2025/11/05 05:28
By: Bitget-RWA
- U.S. government shutdown hits 36 days, nearing 1995-96 record, as Congress deadlocks over healthcare funding and political concessions. - Economic impact grows: CBO warns of 1-2% GDP loss, $7B-$14B in irrecoverable costs, and 0.4% unemployment rise from prolonged closure. - Political tensions escalate: Senate Democrats block GOP funding bills, while Trump threatens to withhold SNAP benefits until government reopens. - Human crisis deepens: Food banks report surging demand, military families face food ins

On November 5, 2025, the U.S. government shutdown reached its 36th day, on track to break the previous 35-day record from the 2018-2019 impasse. Congressional gridlock over healthcare funding and partisan demands has deepened the economic and social impacts of the extended closure. Federal employees remain on furlough, agencies are running with minimal staff, and millions of Americans are left uncertain about essential services such as food aid and healthcare support, according to a

.

The Congressional Budget Office (CBO) has cautioned that the shutdown may slash GDP growth in the fourth quarter by 1 to 2 percentage points, with unrecoverable economic damages ranging from $7 billion to $14 billion, depending on how long it lasts, as stated in a

. The U.S. Chamber of Commerce also noted that contractors are losing $3 billion in revenue each week, and the CBO projected that the shutdown could raise the unemployment rate by 0.4 percentage points in October alone, according to a . These statistics highlight a broader decline in consumer spending, especially in areas that depend on federal workers and military families.

Political Stalemate on Healthcare Funding Triggers Nationwide Emergency image 0

The political stalemate persists with no breakthrough in sight. On November 4, Senate Democrats rejected a 14th funding proposal from Republicans, citing the need for extended healthcare subsidies and protections against Medicaid cuts from the Trump era. President Donald Trump has intensified the standoff, threatening to withhold Supplemental Nutrition Assistance Program (SNAP) benefits unless Democrats agree to reopen the government, as reported by

. His position has faced strong opposition, with Senate Minority Leader Chuck Schumer accusing Republicans of stripping healthcare from working families.

The effects on people are already evident. Food banks across the country are seeing increased demand, with long lines at distribution sites in states like Texas and California. In response, the Houston Food Bank has turned a stadium parking lot into a large-scale distribution center, while the Agriculture Department is under a court order to release $4.6 billion in emergency funds for partial SNAP payments, according to the

. Military households are especially at risk, with a quarter of active-duty service members already experiencing food insecurity before the shutdown began. Financial institutions such as Armed Forces Bank have introduced zero-interest loans to help, but without a resolution, many remain in a precarious situation, as noted by the .

PriceSmart Inc., a retailer active in Latin America and the Caribbean, announced strong sales growth during its recent earnings call, demonstrating resilience in certain sectors. However, CEO David Price pointed out that the region remains vulnerable, especially to possible disruptions in U.S. remittance flows, which are a vital source of income for many communities, as highlighted in a

.

As the shutdown continues, bipartisan talks remain tense. Some legislators are cautiously hopeful, but the lack of direct involvement from Trump and Republican leadership has stalled any real progress. With Thanksgiving approaching and the CBO warning of a $39 billion GDP loss if the shutdown lasts eight weeks, the urgency for a solution is growing. Still, with both sides refusing to compromise on major issues, the nation faces the risk of a crisis with significant economic and social fallout.

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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