• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
PoliticsDonald Trump

Business braces for furloughs, lost data, and policy paralysis as government shutdown looms

By
Stephen Groves
Stephen Groves
,
Mary Clare Jalonick
and
The Associated Press
The Associated Press
Down Arrow Button Icon
September 29, 2025, 11:12 AM ET
President Donald Trump walks to speak with reporters after greeting supporters before departing the White House, Friday, Sept. 26, 2025, in Washington.
“If it has to shut down, it’ll have to shut down,” President Donald Trump said Friday. “But they’re the ones that are shutting down government.”AP Photo/Julia Demaree Nikhinson

Democratic and Republican congressional leaders are heading to the White House for a meeting with President Donald Trump on Monday in a late effort to avoid a government shutdown, but both sides have shown hardly any willingness to budge from their entrenched positions.

Recommended Video

If government funding legislation isn’t passed by Congress and signed by Trump on Tuesday night, many government offices across the nation will be temporarily shuttered and nonexempt federal employees will be furloughed, adding to the strain on workers and the nation’s economy.

White House aides, ahead of the meeting, made it clear the Republican administration had no intention to negotiate.

“The president wants to keep the government open, he wants to keep the government funded,” press secretary Karoline Leavitt told reporters at the White House on Monday morning, adding Trump was “giving Democrats one last chance to be reasonable today.”

Republicans are daring Democrats to vote against legislation that would keep government funding mostly at current levels, but Democrats have held firm. They’re using one of their few points of leverage to demand Congress take up legislation to extend health care benefits.

“The meeting is a first step, but only a first step. We need a serious negotiation,” Senate Democratic leader Chuck Schumer said Sunday on NBC’s “Meet the Press.”

Democrats’ health care demands

Trump has shown little interest in entertaining Democrats’ demands on health care, even as he agreed to hold a sit-down meeting Monday with Schumer, along with Senate Majority Leader John Thune, House Speaker Mike Johnson and House Democratic leader Hakeem Jeffries. The Republican president has said repeatedly he fully expects the government to enter a shutdown this week.

“If it has to shut down, it’ll have to shut down,” Trump said Friday. “But they’re the ones that are shutting down government.”

The Trump administration has tried to pressure Democratic lawmakers into backing away from their demands, warning that federal employees could be permanently laid off in a funding lapse.

“Chuck Schumer said a few months ago that a government shutdown would be chaotic, harmful and painful. He’s right, and that’s why we shouldn’t do it,” Thune, a South Dakota Republican, said Sunday on “Meet the Press.”

Still, Democrats argued Trump’s agreement to hold a meeting shows he’s feeling the pressure to negotiate. They say that because Republicans control the White House and Congress, Americans will mostly blame them for any government shutdown.

But to hold on to their negotiating leverage, Senate Democrats will likely have to vote against a bill to temporarily extend government funding on Tuesday, just hours before a shutdown — an uncomfortable position for a party that has long denounced shutdowns as pointless and destructive.

The bill has already passed the Republican-controlled House and would keep the government funded for seven more weeks while Congress works on annual spending legislation.

Any legislation to fund the government will need support from at least 60 senators in the 100-member chamber. That means that at least eight Democrats would have to vote for the short-term funding bill, because Republican Sen. Rand Paul of Kentucky is expected to vote against it.

How did Democrats vote earlier this year?

During the last potential government shutdown in March, Schumer and nine other Democrats voted to break a filibuster and allow a Republican-led funding bill to advance to a final vote. The New York Democrat faced fierce backlash from many in his own party for that decision, with some even calling for him to step down as Democratic leader.

This time, Schumer appears resolute.

“We’re hearing from the American people that they need help on health care and as for these massive layoffs, guess what? Simple one-sentence answer: They’re doing it anyway,” he said.

Democrats are pushing for an extension to Affordable Care Act tax credits that have subsidized health insurance for millions of people since the COVID-19 pandemic. The credits, which are designed to expand coverage for low- and middle-income people, are set to expire at the end of the year.

Some Republicans are open to extending the tax credits but want changes. Thune said Sunday that the program is “desperately in need of reform” and Republicans want to address “waste, fraud and abuse.” He has pressed Democrats to vote for the funding bill and take up the debate on tax credits later.

Negotiations between Trump and Democrats

It remains to be seen whether the White House meeting will help or hurt the chances for a resolution. Negotiations between Trump and Democratic congressional leaders have rarely gone well, and Trump has had little contact with the opposing party during his second term.

The most recent negotiation in August between Schumer and the president to speed the pace of Senate confirmation votes for administration officials ended with Trump telling Schumer to “go to hell” in a social media post.

Trump also abruptly canceled a meeting that was planned with congressional leaders last week, calling Democrats’ demands “unserious and ridiculous.”

Schumer argued that the White House coming back to reschedule a meeting for Monday showed that “they felt the heat.”

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.
About the Authors
By Stephen Groves
See full bioRight Arrow Button Icon
By Mary Clare Jalonick
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon

Latest in Politics

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
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
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • 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

© 2025 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.


Latest in Politics

EnergyData centers
Georgia regulators approve 50% power capacity boost, betting that massive AI data center demand will eventually materialize
By Jeff Amy and The Associated PressDecember 20, 2025
9 hours ago
PoliticsOil
U.S. forces stop second tanker off the coast of Venezuela after Trump vows oil ‘blockade’
By Konstantin Toropin, Aamer Madhani and The Associated PressDecember 20, 2025
10 hours ago
EconomyFederal Reserve
Trump and his new hand-picked Fed chair—whoever it will be—are going to clash ‘almost immediately,’ economists predict
By Jason MaDecember 20, 2025
11 hours ago
PoliticsJeffrey Epstein
At least 16 Epstein files have disappeared from the DOJ’s site — less than a day after they were posted with no explanation
By Michael R. Sisak, David B. Caruso and The Associated PressDecember 20, 2025
13 hours ago
PoliticsJeffrey Epstein
House Oversight lawmaker estimates only a small fraction of the Epstein files are out, and many were already public
By Jason MaDecember 20, 2025
14 hours ago
EconomyCost of living
‘Everything is too expensive’: Meet a 67-year-old retiree in swing-district Pennsylvania who grades Trump an ‘F’ on the economy
By Steven Sloan and The Associated PressDecember 20, 2025
18 hours ago

Most Popular

placeholder alt text
Success
The scientist who helped create AI says it’s only ‘a matter of time’ before every single job is wiped out—even safer trade jobs like plumbing
By Orianna Rosa RoyleDecember 19, 2025
2 days ago
placeholder alt text
Economy
James Talarico says the biggest 'welfare queens' in America are 'the giant corporations that don't pay a penny in income taxes'
By Dave SmithDecember 20, 2025
23 hours ago
placeholder alt text
Success
As graduates face a ‘jobpocalypse,’ Goldman Sachs exec tells Gen Z they need to know their commercial impact 
By Preston ForeDecember 18, 2025
3 days ago
placeholder alt text
Economy
Sneaking unemployment rate means the U.S. economy is inching closer to a key recession indicator, says Moody’s
By Eleanor PringleDecember 19, 2025
2 days ago
placeholder alt text
Future of Work
'They'll lose their humanity': Dartmouth professor says he's surprised just how scared his Gen Z students are of AI
By Nick LichtenbergDecember 20, 2025
21 hours ago
placeholder alt text
AI
Meta’s 28-year-old billionaire prodigy says the next Bill Gates will be a 13-year-old who is ‘vibe coding’ right now
By Eva RoytburgDecember 19, 2025
2 days ago