The US government shutdown deadlock continues! With the wave of pay cuts still ongoing, another 42 million people are feared to face food shortages.
2025-10-29 11:48:41
The U.S. government shutdown entered its 28th day, and Republican and Democratic lawmakers remained deadlocked in seeking a government funding solution, unable to end what has become the second longest government shutdown in U.S. history.
The Senate on Tuesday (October 28) rejected a Republican-proposed temporary funding bill for the 13th time, which would have allowed the federal government to resume operations until November 21. The bill failed to pass again with 54 votes in favor and 45 against, requiring 60 votes to proceed to the next stage. All senators maintained their previous voting positions.
The longest shutdown occurred during President Trump's first term, from December 2018 to January 2019, and lasted 35 days.
U.S. Vice President Vance arrived at Capitol Hill after 1 p.m. local time on October 28 and had a closed-door lunch with Senate Republicans.
He did not respond to the cries and questions about the shutdown, but simply said as he entered, "We'll talk about the mission again soon."
Vance is in talks with members of Congress after the Senate rejected a Republican-proposed temporary funding bill for the 13th time.
On Tuesday, more than 20 states and the District of Columbia filed a joint lawsuit in Massachusetts, accusing the Trump administration of actions that led to the impending discontinuation of Supplemental Nutrition Assistance (SNAP) benefits during the government shutdown.
Approximately 42 million Americans will lose their SNAP benefits when federal funding is suspended on November 1. The U.S. Department of Agriculture (USDA) has stated that it will not use emergency funds to provide a lifeline for the program.
The states are seeking a court order to force the USDA to use all available funds to ensure SNAP benefits are paid out in November.
The lawsuit states: "Suspending Supplemental Nutrition Assistance (SNAP) benefits under these circumstances violates the law and constitutes an arbitrary and capricious act as defined by the Administrative Procedure Act. The USDA's suspension of SNAP benefits is causing irreparable harm to the plaintiff states—harm that intensifies with each day of delay in benefit disbursement."
The states that have joined the lawsuit against the Trump administration include: Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia.
U.S. Vice President Vance met behind closed doors with Republican senators for about 40 minutes. The government shutdown was one of the topics discussed, but no strategic adjustments appeared to be proposed.
Vance stated, "I think there's a strong consensus within Republicans on this—we have to get the government running again. The government needs to be open and functioning; now all we need is for Democrats to truly accept that and vote with us."
Vance said he believes the government can continue paying troops this Friday.
He said, "Yes, we believe we can continue to pay troops on Friday. Unfortunately, we can't pay everyone because the Democrats have left us with a bad hand. That's one of the reasons for the layoffs in some federal government positions. We do believe we can continue to pay troops right now, but food stamp benefits will run out in a week. We're trying to keep as many programs running as possible, and now all we need is for the Democrats to really lend a hand."
Regarding the SNAP program, which will run out of funds on November 1, Vance was asked why the government did not use contingency funds to sustain the program.
Vance stated, "We are staying as open as possible to exploring all possibilities. These funds are subject to usage restrictions, and their purpose is clearly defined."
He added, “We are doing our best to ensure that critical food benefits are paid, to ensure that our troops are paid… If the Democrats simply open the government, then we don’t have to play this game—you know, trying to cut corners on the budget because we have very limited funds to cover an extremely wide range of areas.”
Senate Minority Leader Chuck Schumer stated that the federal government shutdown could continue until November, at which point millions will face hefty health insurance costs due to the expiration of the Affordable Care Act tax credit. Hundreds of thousands of federal workers have been furloughed, others are working without pay, and federal food assistance is nearing its end.
Schumer asked Republicans to "sit down and negotiate with us" to end the government shutdown and address the health care crisis.
When asked about his strategy for reopening the government, Schumer said, "Listen, by November 1st, people in more than 30 states will be shocked when they see the bills, and they will cry out. I believe Republicans will face even greater pressure to negotiate with us."
When asked about the U.S. government employees' call for lawmakers to pass a clean, sustainable resolution to restart Washington, D.C., Schumer said, "We can and must do both—keep federal employees paid and negotiate ways to alleviate the suffering of Americans in the healthcare crisis."
Schumer stated that Senate Democrats will introduce a bill to extend funding for the Supplemental Nutrition Assistance Program (SNAP) and the Women and Infants Nutrition Program (MINP) to "ensure no child goes hungry."
He said, "Trump isn't even in the United States, and Senate Republicans are repeating the same mistakes. It's this failed strategy that has brought the United States to the brink of disaster. The American people are facing a medical crisis unlike anything we've ever seen in our lifetime."
"Republicans are doing nothing," Schumer said. "We are on the brink of a historic crisis, and the Republicans won't even talk to us. Trump isn't even in the United States."
He said Trump's "number one priority" was decorating the new White House ballroom. He added: "Can you believe this? You can't make up stories like this when people are suffering. What kind of president is this?"
On October 28 local time, U.S. Federal Judge Susan Ilston made a further ruling at a hearing in San Francisco, extending the judicial injunction against the Trump administration's plan to massively lay off thousands of federal employees during the partial shutdown.
The temporary injunction requires nearly 40 federal agencies to completely halt layoffs while a lawsuit filed by the federal employees' union remains unresolved. This ruling represents another instance of the judicial system restraining executive power, following a San Francisco federal judge's decision on October 15 to halt layoffs.
A prolonged government shutdown is seen as a clear signal of dysfunction in the US political system. International investors' confidence in US political stability and governance is undermined, potentially leading to capital outflows from the US market and putting pressure on the dollar. Schumer's accusations of "Republicans doing nothing" have further exacerbated negative political perceptions in the market.
The shutdown has resulted in hundreds of thousands of federal employees working without pay or being furloughed, while massive food assistance has been interrupted, directly dragging down consumer confidence and household spending. SNAP benefits affect low-income groups, who have the highest marginal propensity to consume; the immediate impact of its interruption on consumption may be greater than expected. Consumption is the cornerstone of the US economy, and its bleak outlook will weaken market expectations for the US economy and interest rates, negatively impacting the dollar.
The shutdown deadlock foreshadows potentially fiercer battles on more important issues, such as raising the debt ceiling. This policy uncertainty is a significant driver of the dollar's weakness.
The current government shutdown is exerting downward pressure on the US dollar through two pathways: "political risk" and "economic uncertainty." While the dollar's safe-haven appeal may provide some sporadic support, it is unlikely to reverse the downward trend unless it triggers a global market panic. As the shutdown enters a critical phase, its negative impact on the dollar may deepen further.
On Wednesday, the US dollar index fluctuated narrowly around 98.77. The US dollar index has been trending downward recently, and in the short term it may still tend to fluctuate weakly.
(US Dollar Index Daily Chart, Source: FX678)
At 11:48 Beijing time, the US dollar index is currently at 98.80.
The Senate on Tuesday (October 28) rejected a Republican-proposed temporary funding bill for the 13th time, which would have allowed the federal government to resume operations until November 21. The bill failed to pass again with 54 votes in favor and 45 against, requiring 60 votes to proceed to the next stage. All senators maintained their previous voting positions.
The longest shutdown occurred during President Trump's first term, from December 2018 to January 2019, and lasted 35 days.
Vance attended a Senate Republican luncheon on Capitol Hill.
U.S. Vice President Vance arrived at Capitol Hill after 1 p.m. local time on October 28 and had a closed-door lunch with Senate Republicans.
He did not respond to the cries and questions about the shutdown, but simply said as he entered, "We'll talk about the mission again soon."
Vance is in talks with members of Congress after the Senate rejected a Republican-proposed temporary funding bill for the 13th time.
25 states and Washington, D.C. have sued the Trump administration over SNAP benefits.
On Tuesday, more than 20 states and the District of Columbia filed a joint lawsuit in Massachusetts, accusing the Trump administration of actions that led to the impending discontinuation of Supplemental Nutrition Assistance (SNAP) benefits during the government shutdown.
Approximately 42 million Americans will lose their SNAP benefits when federal funding is suspended on November 1. The U.S. Department of Agriculture (USDA) has stated that it will not use emergency funds to provide a lifeline for the program.
The states are seeking a court order to force the USDA to use all available funds to ensure SNAP benefits are paid out in November.
The lawsuit states: "Suspending Supplemental Nutrition Assistance (SNAP) benefits under these circumstances violates the law and constitutes an arbitrary and capricious act as defined by the Administrative Procedure Act. The USDA's suspension of SNAP benefits is causing irreparable harm to the plaintiff states—harm that intensifies with each day of delay in benefit disbursement."
The states that have joined the lawsuit against the Trump administration include: Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia.
Vance says troops will be paid on Friday and comments on the Supplemental Nutrition Assistance Program
U.S. Vice President Vance met behind closed doors with Republican senators for about 40 minutes. The government shutdown was one of the topics discussed, but no strategic adjustments appeared to be proposed.
Vance stated, "I think there's a strong consensus within Republicans on this—we have to get the government running again. The government needs to be open and functioning; now all we need is for Democrats to truly accept that and vote with us."
Vance said he believes the government can continue paying troops this Friday.
He said, "Yes, we believe we can continue to pay troops on Friday. Unfortunately, we can't pay everyone because the Democrats have left us with a bad hand. That's one of the reasons for the layoffs in some federal government positions. We do believe we can continue to pay troops right now, but food stamp benefits will run out in a week. We're trying to keep as many programs running as possible, and now all we need is for the Democrats to really lend a hand."
Regarding the SNAP program, which will run out of funds on November 1, Vance was asked why the government did not use contingency funds to sustain the program.
Vance stated, "We are staying as open as possible to exploring all possibilities. These funds are subject to usage restrictions, and their purpose is clearly defined."
He added, “We are doing our best to ensure that critical food benefits are paid, to ensure that our troops are paid… If the Democrats simply open the government, then we don’t have to play this game—you know, trying to cut corners on the budget because we have very limited funds to cover an extremely wide range of areas.”
Schumer says Democrats will introduce bill to extend SNAP and WIC funding
Senate Minority Leader Chuck Schumer stated that the federal government shutdown could continue until November, at which point millions will face hefty health insurance costs due to the expiration of the Affordable Care Act tax credit. Hundreds of thousands of federal workers have been furloughed, others are working without pay, and federal food assistance is nearing its end.
Schumer asked Republicans to "sit down and negotiate with us" to end the government shutdown and address the health care crisis.
When asked about his strategy for reopening the government, Schumer said, "Listen, by November 1st, people in more than 30 states will be shocked when they see the bills, and they will cry out. I believe Republicans will face even greater pressure to negotiate with us."
When asked about the U.S. government employees' call for lawmakers to pass a clean, sustainable resolution to restart Washington, D.C., Schumer said, "We can and must do both—keep federal employees paid and negotiate ways to alleviate the suffering of Americans in the healthcare crisis."
Schumer stated that Senate Democrats will introduce a bill to extend funding for the Supplemental Nutrition Assistance Program (SNAP) and the Women and Infants Nutrition Program (MINP) to "ensure no child goes hungry."
He said, "Trump isn't even in the United States, and Senate Republicans are repeating the same mistakes. It's this failed strategy that has brought the United States to the brink of disaster. The American people are facing a medical crisis unlike anything we've ever seen in our lifetime."
"Republicans are doing nothing," Schumer said. "We are on the brink of a historic crisis, and the Republicans won't even talk to us. Trump isn't even in the United States."
He said Trump's "number one priority" was decorating the new White House ballroom. He added: "Can you believe this? You can't make up stories like this when people are suffering. What kind of president is this?"
Plans for large-scale layoffs during the shutdown face legal blockade again
On October 28 local time, U.S. Federal Judge Susan Ilston made a further ruling at a hearing in San Francisco, extending the judicial injunction against the Trump administration's plan to massively lay off thousands of federal employees during the partial shutdown.
The temporary injunction requires nearly 40 federal agencies to completely halt layoffs while a lawsuit filed by the federal employees' union remains unresolved. This ruling represents another instance of the judicial system restraining executive power, following a San Francisco federal judge's decision on October 15 to halt layoffs.
US dollar under pressure from political risks and economic uncertainty
A prolonged government shutdown is seen as a clear signal of dysfunction in the US political system. International investors' confidence in US political stability and governance is undermined, potentially leading to capital outflows from the US market and putting pressure on the dollar. Schumer's accusations of "Republicans doing nothing" have further exacerbated negative political perceptions in the market.
The shutdown has resulted in hundreds of thousands of federal employees working without pay or being furloughed, while massive food assistance has been interrupted, directly dragging down consumer confidence and household spending. SNAP benefits affect low-income groups, who have the highest marginal propensity to consume; the immediate impact of its interruption on consumption may be greater than expected. Consumption is the cornerstone of the US economy, and its bleak outlook will weaken market expectations for the US economy and interest rates, negatively impacting the dollar.
The shutdown deadlock foreshadows potentially fiercer battles on more important issues, such as raising the debt ceiling. This policy uncertainty is a significant driver of the dollar's weakness.
The current government shutdown is exerting downward pressure on the US dollar through two pathways: "political risk" and "economic uncertainty." While the dollar's safe-haven appeal may provide some sporadic support, it is unlikely to reverse the downward trend unless it triggers a global market panic. As the shutdown enters a critical phase, its negative impact on the dollar may deepen further.
On Wednesday, the US dollar index fluctuated narrowly around 98.77. The US dollar index has been trending downward recently, and in the short term it may still tend to fluctuate weakly.
(US Dollar Index Daily Chart, Source: FX678)
At 11:48 Beijing time, the US dollar index is currently at 98.80.
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