• President Trump convenes bipartisan leadership meeting as government shutdown looms at midnight October 1
  • Democrats demand Obamacare subsidies in funding deal while Republicans push for clean seven-week stopgap
  • Office of Management and Budget has advised agencies to prepare "mass firing plans" for non-essential workers

President Donald Trump is scheduled to meet with the top four congressional leaders from both parties at 3 p.m. ET Monday, according to people familiar with the matter, in a last-ditch effort to prevent a federal government shutdown that would begin at midnight on October 1 if new funding isn't approved.

The meeting comes after Trump abruptly canceled a previous session, escalating tensions between the White House and Democratic leadership. Participants will include House Speaker Mike Johnson (R-La.), Senate Majority Leader John Thune (R-S.D.), Senate Minority Leader Chuck Schumer (D-N.Y.), and House Minority Leader Hakeem Jeffries (D-N.Y.).

Efforts to restructure the government funding package have hit a significant snag over Democratic demands to attach health care policies—specifically preserving key Obamacare subsidies—to any short-term funding deal. Republicans, who control the White House and both chambers of Congress, insist on a seven-week stopgap funding bill with no Democratic concessions, advocating instead for negotiations during the regular appropriations process.

"We remain ready to meet at any time to avoid disrupting government services and harming vulnerable groups," a spokesperson for Democratic leadership said Sunday evening, though officials declined to comment on the specific negotiating positions ahead of Monday's critical session.

The standoff illustrates deep partisan divides over spending priorities that have become characteristic of Washington budget negotiations. Without a deal, the government would enter its 15th partial shutdown since 1981, potentially closing national parks and triggering furloughs or delayed pay for millions of federal workers, including military personnel.

The Office of Management and Budget has already advised agencies to prepare contingency plans that include potential layoffs, particularly for programs serving low-income women and children. The U.S. economy, already contending with persistent inflation, could see further strain if the shutdown becomes prolonged.

Senate rules requiring 60 votes to pass funding legislation give Democrats leverage to block any deal that doesn't address their priorities, despite Republican control of the chamber. This procedural reality makes bipartisan agreement essential, though neither side has shown significant movement from their initial positions in recent days.

House Republicans recently passed a stopgap funding measure through November 21, but the Senate rejected it. Any breakthrough in Monday's meeting could prompt a swift recall of House lawmakers to vote on a compromise bill, though time is running critically short.

Correction: An earlier version of this article misstated the length of the Republican-proposed stopgap measure. It is seven weeks, not six.