Congressional Republicans and Democrats have failed to reach an agreement to avert a government shutdown before a midnight deadline, resulting in the first government funding lapse of President Trump's second term.

A shutdown seemed increasingly likely as the deadline approached, with House Minority Leader Hakeem Jeffries (D., N.Y.) leaving a closed-door meeting between Trump and top congressional leaders on Monday afternoon saying "significant and meaningful differences" remained. Senate Minority Leader Chuck Schumer (D., N.Y.) argued that the Republican bill to fund the government "has not one iota of Democratic input."

The Senate held one last failed vote on a GOP funding plan Tuesday night ahead of the deadline. The measure received the support of 55 senators, with Democratic Senators John Fetterman of Pennsylvania, Angus King of Maine, and Catherine Cortez Masto of Nevada joining Republicans in voting in favor of the bill. Senator Rand Paul (R., Ky.) was the lone Republican to oppose the measure.

The upper chamber also voted down a Democrat-drafted funding bill.

Republicans have said they plan to continue holding votes on the GOP-backed, House-passed spending bill until Democrats capitulate to public demand and support the measure.

Democrats have said they will support a continuing resolution to fund the government through November 21 only if Republicans include legislative language to permanently extend temporary Obamacare subsidies. Democrats drafted their own continuing resolution, which would repeal significant parts of President Trump’s signature domestic policy legislation, the One Big Beautiful Bill Act.

The Democrats’ funding bill, which Republicans immediately declared a nonstarter, would, among other things, restore Obamacare eligibility for noncitizens deemed by states to be “lawfully present” in the U.S., including, in some cases, recipients of the Deferred Action for Childhood Arrivals, refugees, and asylum seekers. Republicans have accused their colleagues across the aisle of using the threat of the shutdown to give illegal immigrants free health care, while Democrats insist that illegal immigrants, as they define the category, will not have their eligibility restored.

GOP leaders have said they are willing to negotiate on Obamacare credits before they expire at year's end, but they do not want to include the provision in the government funding bill.

Republicans believe Americans will blame Democrats for the shutdown because of their unreasonable demands, which also include rolling back Republican-passed public broadcasting cuts.

While Democrats are trying to advance their policy aims by holding government funding hostage, the Republican-drafted continuing resolution is "clean" in that it maintains the funding status quo, adding only noncontroversial provisions to beef up security funds for lawmakers, executive branch officials, and Supreme Court justices in the wake of Charlie Kirk's assassination.

"I don't know where they're saying this is some huge partisan thing," Senate Majority Leader John Thune said. "This is something we do fairly routinely."

There have been 20 funding gaps since 1977, according to ABC News, some of which have lasted as little as one day.

The last shutdown occurred during Trump's first term, in December 2018, and lasted 35 days — the longest in history. When the government finally reopened, some $3 billion in U.S. economic activity was lost, according to the Congressional Budget Office.

During a shutdown, as many as 4 million federal employees will go without a paycheck, including essential workers such as airport security officers, air traffic controllers, and some members of the military who are considered essential workers and are required to work anyway. Federal contractors, including hourly workers such as janitors and security guards, are not required to work and are not guaranteed back pay. Under the Government Employee Fair Treatment Act, employees who are furloughed or forced to work during a shutdown must be paid after it ends for the time the government was closed.

The White House Office of Management and Budget previously told agency heads that a government shutdown would give the administration the opportunity to issue “reduction in force” notices to people who work on programs that are “not consistent with the president’s policies,” as Politico first reported.

Members of Congress will continue to receive their $174,000 annual salaries, and Social Security, Medicare, and Medicaid will continue to be distributed.