The Senate found itself once again gridlocked on Friday and geared up for another weekend of the government shutdown. However, a flurry of proposals and counterproposals offered glimmers of hope that the two sides could be moving toward a compromise.
Lawmakers debated multiple options on the Senate floor through the day — from a bill to end the shutdown to another to simply pay federal workers — but saw each side object to the other’s efforts.
Late Friday afternoon, Senate Minority Leader Chuck Schumer announced a new Democratic plan to reopen the government if a one-year extension of enhanced Obamacare healthcare subsidies were attached.
Republicans immediately rejected that — as did Democrats of the GOP’s efforts — but a day of both sides at least talking was a contrast to weeks of noncommunication.
Senate Majority Leader John Thune told reporters he hopes another idea he is floating — a new bill that could include a new end date for the shutdown and full-year authorization for some programs — could gain traction and suggested he might try to bring it to a vote by this weekend.
As for a takeaway for markets, Pangaea Policy founder Terry Haines joined Yahoo Finance and could offer only that the shutdown will “probably” end by Thanksgiving.
“The practical pain that people will go through,” he added, “probably plays a role in all of that.”
Ed Mills at Raymond James added, “We believe we are at the beginning of the end, but are unlikely to see a resolution pass into law before next week.”
Election results haven’t helped shutdown talks
The week is also ending with new political challenges, particularly election results that saw the Democratic Party gain across the board.
Prominent Democrats, like Sen. Chris Murphy of Connecticut, immediately responded that the results were a message to keep fighting.
It was no coincidence, Murphy wrote, that “these big wins came at the exact moment when Democrats are using our power to stand for something and be strong.”
Meanwhile, President Trump has shown no signs of offering concessions and has continued to ignore pressure to meet with Democrats for negotiations.
The president repeated calls this week to change the Senate’s filibuster rules, including three separate social media posts Friday morning, as well as during an appearance at the White House alongside Hungarian Prime Minister Viktor Orbán.
The president also appeared with Senate Republicans on Wednesday and rhetorically asked if this week’s election results could herald a quicker end to the shutdown.
He then immediately answered his own question, saying, “I don’t think so.”
The gridlock among leaders comes as moderate lawmakers continue to negotiate with Republicans — Politico reported that one such meeting is on the books for Friday — but the ongoing search for a path forward faces difficult political terrain.
The mood music of spiraling economic costs
The ongoing gridlock on Capitol Hill also comes as economic costs continue to mount.
US airlines have canceled hundreds of flights after a Federal Aviation Administration order reduced air traffic capacity by 4% Friday morning.
That first cut took effect at 6 a.m. ET Friday at 40 high-traffic airports and will deepen next week and reach a cut of 10%.
Transportation Secretary Sean Duffy has warned that an already difficult travel situation could soon descend into “mass chaos.”
Duffy added in a Fox News appearance Friday that air traffic capacity could be cut further — 15% or even 20% — if the stalemate continues beyond that.
Meanwhile, a federal judge in Rhode Island on Thursday ordered the Trump administration to immediately cover Supplemental Nutrition Assistance Program (SNAP) benefits for tens of millions of Americans.
The Trump administration had previously announced plans to pay only partial benefits for the program, which is relied on by about 1 in 8 Americans, but late on Friday, the US Department of Agriculture announced it would be paying “full issuances” after all.
