Sunday, December 28, 2025

US government to shut down within hours if no funding deal agreed – US politics live

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US government to shut down within hours if no funding deal agreed

Hello and welcome to the US politics live blog. I’m Tom Ambrose and I will be bringing you the latest news lines over the next few hours.

We start with the news that a high-stakes meeting between Donald Trump and top congressional Democrats on Monday resulted in no apparent breakthrough in negotiations to keep the government open, with JD Vance declaring afterwards: “I think we are headed into a shutdown.”

Democrats, who are refusing to support the GOP’s legislation to continue funding beyond Tuesday unless it includes several healthcare provisions, struck a more optimistic tone after the Oval Office encounter, which also included the Republican leaders of the Senate and House of Representatives.

The Senate minority leader, Chuck Schumer, said he had outlined his concerns about the state of healthcare in the country to Trump, and said: “He seemed to, for the first time, understand the magnitude of this crisis.

“We hope he’ll talk to the Republican leaders and tell them: we need bipartisan input on healthcare, on decisions into their bill. Their bill does not have these – they never talked to us.”

But there was little sign that Republicans had shifted from their demands that Senate Democrats vote for their bill that would keep the government open until 21 November, so that long-term funding talks may continue. The GOP passed that bill through the House on a near party-line vote earlier this month, but it needs at least some Democratic support to advance in the Senate.

“This is purely and simply hostage-taking on behalf of the Democrats,” said the Senate majority leader John Thune. Referring to the Republican funding proposal, Thune said: “We could pick it up and pass it tonight, and pass it tomorrow before the government shuts down.”

Vance sought to pin the blame for any shutdown on the Democrats, saying: “I think we’re headed into a shutdown because the Democrats won’t do the right thing. I hope they change their mind, but we’re gonna see.”

Trump has not yet commented publicly on the meeting, which was not opened to reporters. In an interview earlier in the day with CBS News, the president said “I just don’t know how we are going to solve this issue,” and alleged the Democrats “are not interested in waste, fraud and abuse”.

Read the full story here:

In other developments:

  • Donald Trump announced his proposed 20-point peace plan for Gaza, and held a public appearance with the Israeli prime minister, Benjamin Netanyahu, who said he approved the plan. Neither leader took questions on the plan from journalists.

  • Hamas negotiators reportedly received a copy of the plan today, but have not yet responded.

  • The plan calls for a transitional government of Gaza that would involve international figures, including Trump and the former UK prime minister Tony Blair, whose inclusion sparked some immediate pushback, given his historic role in supporting the 2003 US invasion of Iraq, and the history of British colonization in the region.

  • The pending US government shutdown may be more severe for Americans than in the past, as the Trump administration is threatening to permanently fire federal employees during the shutdown, rather than simply furlough them temporarily.

  • Airlines and other aviation groups warned that the federal government shutdown could immediately affect airline passengers, as well as slow the pipeline of air-traffic-controllers currently in training to fill a huge gap in these crucial jobs.

  • YouTube, following the footsteps of Facebook and Twitter/X, is caving to a lawsuit filed by Donald Trump in response to the platforms deactivating his profiles after the 6 January insurrection in Washington. YouTube will pay $24.5m to settle the lawsuit: more than $20m of that is reportedly expected to fund the construction of a Mar-a-Lago-style ballroom at the White House.

  • The Trump administration announced it was filing a lawsuit against Minnesota for the state’s immigration sanctuary policies, following similar lawsuits against Los Angeles and New York.

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Dani Anguiano

Dani Anguiano

Portland is bracing for the deployment of 200 national guard troops as Donald Trump moves ahead with plans to bring the US military into another Democratic-run city.

Oregon filed a lawsuit to block the deployment, which the state has warned will escalate tensions and lead to unrest when there is “no need or legal justification” to bring federal troops into Portland.

Trump on Saturday claimed Portland is “war ravaged” and that US Immigration and Customs Enforcement (Ice) facilities there are under attack, but there is no evidence of that and protests outside Ice sites have been small.

It is the latest development in Trump’s years-long fixation on the Pacific north-west city of 635,000 that extended through the president’s first term in the White House. The president has frequently sought to paint the city as out of control and, as he described in September, like “living in hell”.

During the first Trump administration, Portland was the site of major rightwing gatherings, counterprotests and clashes between both groups, and in 2020 it became a hotspot for the racial justice protests that swept the US in the aftermath of the murder of George Floyd.

In response to the large racial justice protests, the president sent federal agents, including an elite border patrol unit, which teargassed crowds and arrested protesters off the streets into unmarked vehicles.

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