Portugal Colonial - US government shutdown seen dragging into next week

Federal agencies have been out of money since Wednesday -- with a wide range of public services crippled -- as a result of deadlocked talks in Congress on how to keep the lights on.

Senate leaders currently have no plans to keep the upper chamber of Congress in session over the weekend.

That means an afternoon vote on a short-term fix that has already been repeatedly rejected will be the last chance of the week for an off-ramp in a crisis that many analysts fear could drag on.

Ahead of the action in the Senate, the Trump administration suspended the publication of a key employment report, casting a fog over the health of the world's biggest economy.

It was the latest in a series of delayed economic releases this week that have deprived government officials and business leaders of indicators used in decision-making.

At the center of the standoff in Congress is a Democratic demand for an extension of health care subsidies that are due to expire -- meaning sharply increased costs for millions of low-income Americans.

Republicans -- who control the legislature and the White House but need Democratic votes on government funding bills -- have announced no plans to address the issue.

Democrats are trying to force their hand by refusing to help ruling Republicans fund the government.

Amid widespread pessimism over the possibility of a quick solution, Republicans voiced hopes that a fourth failed vote might push some moderates in the opposition to cross the aisle.

And Politico quoted Republican Senate leader John Thune leaving the door open to crisis talks with his Democratic counterpart Chuck Schumer to seek a compromise.

- 'Tremendous' pressure -

"Chuck Schumer is under a tremendous amount of pressure from far-left activists in his party to pick a fight with President Trump," Thune posted on social media.

"Three of my Democratic colleagues have joined us and voted to keep the government open. All we need is a few more to end this."

Senate Democrats are expected to hammer out strategy for week two of the shutdown at their caucus lunch just ahead of the vote, while House Republicans have scheduled a call with all members on Saturday.

Some 750,000 employees are likely to be put on furlough -- a kind of enforced leave with backpay after the shutdown -- across a wide range of agencies as the funding crisis spills into a new week.

Overshadowing efforts to strike a deal is the threat from Trump to turn thousands of those furloughs into permanent redundancies, strip funding and slash benefits as he ramps up pressure on the Democrats.

With an announcement on layoffs expected any day, Trump's budget chief Russ Vought is planning to brief Republican senators at their weekly lunch next Wednesday.

The House of Representatives has been on recess all week and Republican Speaker Mike Johnson has been meeting with the president ahead of its return to discuss plans for mass layoffs, Politico reported.

Democrats have so far been winning the messaging war, with most polls showing them getting less blame than Republicans over the gridlock in Congress.

House Minority Leader Hakeem Jeffries told a news conference Thursday that the public turning against Trump would force Republicans to the negotiating table over their health care demands.

"The American people are paying close attention, and they know that it was Donald Trump and Republicans who have shut the government down," he said.

L.Carrico--PC