The United States government is poised for a shutdown unless Congress passes a funding bill, which has become contentious. Republicans control the House, Senate, and White House but lack the necessary votes to advance the bill. Democrats are leveraging the situation to reverse Medicaid cuts and extend healthcare tax credits. The shutdown could lead to layoffs and furloughs, impacting consumer sentiment and spending. Federal agencies have been instructed to prepare for job cuts, although the legality of such actions during a shutdown is uncertain. The Labor Department's release of key economic reports may also be delayed, further complicating the economic landscape. Historically, government shutdowns have had limited effects on financial markets, but this situation is unique due to the potential for job slashing amidst a weakening labor market.