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US government shutdown continues, as Trump cuts funds for Democratic states

US lawmakers have failed to resolve the ongoing federal government shutdown for a second day, with both Republican and Democratic spending proposals being blocked in the Senate. The impasse continues as President Trump implements retaliatory measures, freezing infrastructure funding for Democratic-led states and signaling potential mass layoffs. The economic impact of this uncertainty is already being felt, with experts warning of delayed investments and increased borrowing costs. Neither party shows signs of compromise, escalating the political standoff.

Prepared by Lauren Mitchell and reviewed by editorial team.

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