The U.S. Senate is convening on Sunday in an extraordinary session to try to put an end to the 39-day government shutdown, which threatens to shrink GDP in the fourth quarter of 2025, according to Kevin Hassett, Director of the White House National Economic Council.

In an interview with CBS, Hassett noted that U.S. investment bank Goldman Sachs had previously estimated that the partial shutdown would cost the country around 1.5% of GDP. However, he warned that “this figure will likely fall short” if the impasse continues “for a couple more weeks.” The suspension of flights due to a shortage of air traffic controllers and major disruptions in food assistance distribution are among the difficulties the government is facing as operations stall over disagreements between Democrats and Republicans, including on healthcare spending.

Throughout Sunday, Donald Trump has continued to blame former President Barack Obama’s healthcare plan and the pandemic-era subsidies paid to insurance companies. On Friday, Democrats proposed reopening the government in exchange for a one-year extension of medical tax credits — an offer quickly rejected by Republicans.

“The Obamacare scam directly benefits their allies in the insurance industry. They are getting richer at the expense of the American people, while healthcare coverage worsens. If Democrats get their way again, they will score yet another big win at the people’s expense,” Trump wrote on his Truth Social platform.

As he did on Saturday, Trump has demanded that Senate Republicans redirect subsidies directly to U.S. citizens. “Republicans should allocate these funds straight into their health savings accounts,” he argued.

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CEL

Republican Senate Majority Leader John Thune announced Sunday that the chamber will remain in session until the government reopens in what is expected to be a marathon negotiation.

Senators are working on the final version of a package of three long-term appropriations bills that form part of the Republican plan to break the deadlock. Thune is pushing a strategy that would start by approving the temporary funding resolution previously passed by the House of Representatives and amending it to include the appropriations package — known as a “minibus” — with the ultimate goal of extending funding for a longer term.