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U.S. Senate holds emergency session as shutdown threatens economy

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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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.

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International

Venezuela Earthquake Death Toll Rises to 4,490 as Rescue Efforts Continue

The death toll from the powerful earthquakes that struck Venezuela on June 24 has risen to 4,490, according to the latest official figures released by the government on social media.

Authorities reported that 16,740 people have been injured, while more than 19,500 residents remain in temporary shelters after the twin earthquakes devastated Caracas and the neighboring state of La Guaira.

Rescue teams from Venezuela and several foreign countries continue searching through collapsed buildings in an effort to recover victims who remain trapped beneath the rubble.

Government officials said the earthquakes damaged more than 850 buildings, with 190 structures completely collapsing.

Thousands of families who lost their homes are currently staying with relatives or friends, while more than 19,500 displaced people are living in overcrowded emergency camps set up in parks, stadiums, and public squares across La Guaira and Caracas.

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Tensions Escalate in Middle East as U.S. Bombs Iran After Maritime Attacks

The United States launched new strikes against Iran on Wednesday, following President Donald Trump’s warning that Washington would “hit hard” against the Islamic Republic. While Trump ordered the retaliation after attacks on vessels in the Strait of Hormuz, he also said he hoped the latest wave of bombings would end soon and left the door open for renewed negotiations.

U.S. forces “have begun carrying out additional strikes against Iran to further reduce its ability to threaten freedom of navigation in the Strait of Hormuz,” the United States Central Command said in a post on X.

Washington blamed Iran for what it described as “recent unjustified aggression against commercial shipping.”

Iran’s state news agency IRNA reported that explosions were heard in the port cities of Bandar Abbas, Konarak, and Chabahar.

“This is in retaliation for yesterday’s bombing of ships by Iran. If it happens again, it will be much worse,” Trump wrote on social media alongside an image showing what appeared to be a bombing at an Iranian location.

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Before ordering the strikes, the U.S. president said that the ceasefire with Iran had ended. Mediators Pakistan and Qatar called for de-escalation, while the United Nations also urged both sides to reduce tensions.

The Strait of Hormuz remains a critical flashpoint in the Middle East conflict, which began in late February after U.S. and Israeli strikes that killed Iran’s Supreme Leader Ali Khamenei.

Iran-linked attacks on at least three vessels in recent days triggered a U.S. offensive against Iranian targets on Tuesday. Tehran responded by launching attacks against Gulf countries that are allies of Washington.

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International

Deadly Drug Trade Rivalry Suspected After Eight Bodies Discovered in Southern Mexico

Eight bodies were found Wednesday along a highway in the southern Mexican state of Chiapas, near the border with Guatemala, in an incident authorities believe may be linked to a dispute over local drug sales.

The victims — six men and two women — were found abandoned on a road in a mountainous area of the municipality of El Bosque, according to the state prosecutor’s office in a statement published on Facebook.

Initial investigations indicate that the killings may be connected to “a dispute over retail drug sales between local criminal groups operating in the region,” the prosecutor’s office said.

Local media reports that several criminal incidents have increased in the area since the beginning of the year.

The road where the bodies were discovered is located in a mountainous region largely inhabited by Indigenous communities. Authorities have not released further details about the victims or possible suspects as the investigation continues.

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