• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Federal Shutdown

The Government Shutdown Could Last Until January as Leaders Leave Washington

By
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Bloomberg
Bloomberg
Down Arrow Button Icon
December 23, 2018, 12:42 PM ET

White House Budget Director Mick Mulvaney said Sunday the two-day-old government shutdown could last into 2019, as Republicans and Democrats remain at an impasse over President Donald Trump’s demand for billions of dollars in border-wall funding.

The next possibility for votes in the House and Senate is on Dec. 27, as Democrats say they’re far apart in negotiations with the Trump administration. Congressional leaders have left Washington; Trump is spending Christmas at the White House.

“It’s very possible that the shutdown will go beyond the 28th and into the new Congress,” Mulvaney said on “Fox News Sunday.”

Although Trump originally wanted $5 billion for the wall, Mulvaney said the GOP is waiting to hear back about a counteroffer from Saturday to the approximately $1.3 billion that Democrats had previously offered for border security. He said the counteroffer is more than $1.6 billion — the amount Senate Democrats agreed to earlier in the year for border security.

“We’ve insisted on 5 for the discussions,” Mulvaney, who is also the incoming acting White House chief of staff, said in a separate appearance Sunday on ABC’s “This Week.” “Now we’re between $1.6 billion and 5.”

The White House’s offer to Democrats on Saturday was $2.5 billion for border security, including new fencing and $400 million for Trump immigration priorities, according to a Democratic aide. The aide called the $400 million a “slush fund.”

Sense of Confusion

The offer was made at the same time administration officials were telling reporters on a conference call that Trump is insisting on $5 billion, creating a sense of confusion in the talks.

Nancy Pelosi, the top Democrat in the House, warned on Saturday that the shutdown may not be resolved until early January, when her party takes control of the chamber.

“Until President Trump can publicly commit to a bipartisan resolution, there will be no agreement before January when the new House Democratic Majority will swiftly pass legislation to re-open government,” the California lawmaker said in a letter to fellow Democrats.

Vice President Mike Pence returned to the U.S. Capitol on Saturday afternoon to make an offer to the chamber’s top Democrat, Chuck Schumer of New York. But after the meeting, a spokesman for Schumer said the two sides were far from an agreement.

“We’re still talking,” Pence said leaving Schumer’s office.

Both sides spent Saturday dug into their positions over the terms of reopening the nine government departments whose funding expired after Friday night.

“If you want to open the government, you must abandon the wall,” Schumer said on the Senate floor on Saturday.

But the Democrats, along with some Republicans, said they couldn’t support the $5 billion sought by Trump because they said a wall was an ineffective and inefficient method of securing the border.

A senior Trump administration official told reporters on the conference call that Democrats must accept physical barriers on the border as part of any deal. Trump would be willing to negotiate the type of barrier and restrictions on where construction could occur, the official said.

Trump earlier in the week scuttled an agreement that would have kept the government open through Feb. 8 after coming under heavy criticism from conservative talk show hosts and some allies in the House because the measure didn’t include the funding he wanted for the wall.

Ending the shutdown — which affects nine of 15 federal departments, dozens of agencies and hundreds of thousands of workers — would also require the support of Pelosi, who’s in line to become speaker on Jan. 3.

Trump has stopped talking about a concrete wall in recent weeks and focused on building a more fence-like steel structure. A deal with Democrats could revolve around allowing funds to be used for that kind of structure.

This week’s blow-up over spending legislation was sudden. On Wednesday, the Senate easily passed a temporary spending measure without any money for the border wall after getting signals from the White House that Trump wouldn’t press the issue and trigger a shutdown. But after the outcry from conservatives, including talk show host Rush Limbaugh and commentator Ann Coulter, the House, at Trump’s insistence, amended it a day later to include $5 billion for the wall. That was unacceptable to Democrats who have enough votes in the Senate to block the legislation.

On Friday, senators who’d left town for the holidays were summoned back to Washington to vote on the plan as amended by the House. At first, GOP leaders in the chamber struggled to muster enough support for the House plan to move forward. That led to negotiations with the White House. The Senate eventually voted to begin debate but agreed to wait for a bipartisan agreement before moving any further.

Trump last week met with Pelosi and Schumer in front of television cameras and said he’d be proud to take responsibility for shutting down the government over border protection funding. But on Friday, he was blaming Democrats for the impasse.

The nine departments shut as of Saturday represent about a quarter of the $1.24 trillion in government discretionary spending for fiscal year 2019. The remaining parts of the government, including the Defense Department, Departments of Labor and Health and Human Services, were already funded and won’t be affected by the shutdown, nor with mandatory entitlement programs like Social Security payments.

The Department of Veterans Affairs will also not be affected, according to a statement from VA Secretary Robert Wilkie. The Department of Transportation would keep about two-thirds of its more than 50,000 employees on the job.

An estimated 400,000 federal employees will work without pay and 350,000 will now be furloughed, according to a congressional Democratic aide. The essential employees who work during a shutdown are paid retroactively when the government reopens and payroll operations resume. After previous shutdowns, Congress also has passed legislation to retroactively pay furloughed workers.

About the Author
By Bloomberg
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
Fortune Secondary Logo
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

EconomyFinance
Ray Dalio, Scott Bessent and House members from both sides of the aisle are rallying around a ‘3% solution’ to tame the out of control national debt
By Shawn TullyMarch 1, 2026
51 minutes ago
heitmann
CommentaryEntrepreneurship
Here’s how to build something that lasts, from the founder of a $300 million bootstrapped company that’s been growing for 28 years straight
By Tim HeitmannMarch 1, 2026
51 minutes ago
An older man wears an American flag.
EconomyRecession
Your grandparents are the reason the U.S. isn’t in a recession right now. That won’t last forever
By Eleanor PringleMarch 1, 2026
51 minutes ago
U.S. President Donald Trump delivers the State of the Union address during a joint session of Congress in the House Chamber at the Capitol on February 24, 2026 in Washington, D.C.
EnergyData centers
Your utility bills keep going up. Here’s everyone you can blame—AI data centers included
By Jordan BlumMarch 1, 2026
3 hours ago
UN
Middle EastMiddle East
Israel, U.S. stiff-arm U.N. during emergency Security Council meeting
By Edith M. Lederer, Farnoush Amiri and The Associated PressFebruary 28, 2026
8 hours ago
massie
PoliticsCongress
Thomas Massie among few Republicans to criticize Trump over war powers: ‘This is not ‘America First”
By Lisa Mascaro and The Associated PressFebruary 28, 2026
8 hours ago

Most Popular

placeholder alt text
Success
Japanese companies are paying older workers to sit by a window and do nothing—while Western CEOs demand super-AI productivity just to keep your job
By Orianna Rosa RoyleFebruary 27, 2026
2 days ago
placeholder alt text
Middle East
Iran is now on 'death ground' amid existential threat from U.S. attacks and could 'go big' in retaliation, former NATO commander warns
By Jason MaFebruary 28, 2026
18 hours ago
placeholder alt text
AI
The week the AI scare turned real and America realized maybe it isn't ready for what's coming
By Nick LichtenbergFebruary 28, 2026
1 day ago
placeholder alt text
Success
Walmart exec says U.S. workforces needs to take inspiration from China where ‘5 year-olds are learning DeepSeek’
By Preston ForeFebruary 27, 2026
2 days ago
placeholder alt text
Personal Finance
Current price of gold as of February 27, 2026
By Danny BakstFebruary 27, 2026
2 days ago
placeholder alt text
Middle East
Dubai’s worst nightmare unfolds as Iran strikes Gulf neighbors
By Dana Khraiche, Fiona MacDonald and BloombergFebruary 28, 2026
13 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.