Summary
- The possibility of a U.S. federal shutdown is increasing tensions between the Republican and Democratic parties.
- President Trump warned that mass layoffs could occur in the event of a shutdown, and emphasized that cuts would focus on agencies that do not match the administration's policy priorities.
- The Democrats said that if there is a shutdown, the American people will hold Trump responsible.

The U.S. Congress failed to reach an agreement on the budget, bringing a federal government shutdown (temporary work stoppage) — the first in seven years — closer. The Republican and Democratic parties remain at odds, refusing to accept each other's demands. If no agreement is reached, the federal government will enter a shutdown at 12:01 a.m. local time on the 1st, and at 1:01 p.m. KST that day.
President Donald Trump, after signing an executive order at the White House and during a Q&A with reporters, said, "The Democrats want a shutdown," and added, "If there is a shutdown, there will be layoffs. There will be many people laid off."
President Trump said, "No country can afford to pay for health care benefits for illegal immigrants and everyone who comes into this country," and pointed out, "But the Democrats are demanding that."
He was targeting the Democrats' opposition to a Republican 7-week temporary budget bill, as they demand extensions of subsidies under Obamacare and other measures.
President Trump said, "We really don't want a shutdown, but if through a shutdown we can get rid of things we don't want, those would be things the Democrats are pushing."
He continued, "The Democrats want open borders, they want men competing in women's sports and transgender rights for everyone," and said, "They never stop."
The White House Office of Management and Budget earlier said that if there is a shutdown, it plans to cut staff, focusing on agencies that do not align with the Trump administration's policy priorities.
Senate Democratic Leader Chuck Schumer said on the floor of Congress, "There are only hours left until a shutdown, a situation neither we nor the American people want, and the president is busy goofing around on the internet like a 10-year-old child."
He was referring to former President Trump posting a video presumed to be AI-generated featuring Schumer and House Democratic Leader Hakeem Jeffries on the social platform Truth Social the day before.
Schumer said, "If the government shuts down, the American people will blame him (Trump)."
Yonghyun Shin, Hankyung.com reporter yonghyun@hankyung.com

Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.


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