The U.S. federal government entered its fifth day of shutdown Sunday, with Democrats and Republicans showing little progress in negotiations as they remain deadlocked over spending priorities and health care subsidies.
Leaders in both parties are betting that public sentiment has swung their way, putting pressure on the other side to cave.
Democrats are insisting on renewing subsidies to cover health insurance costs for millions of households, while President Donald Trump wants to preserve existing spending levels and threatening to permanently fire federal workers if the government remains closed.
The squabble comes at a moment of troubling economic uncertainty. While the U.S. economy has continued to grow this year, hiring has slowed and inflation remains elevated as Trump's import taxes have created a series of disruptions for businesses and employers have hurt confidence in his leadership.
At the same time, there is a recognition that the nearly $2 trillion annual budget deficit is financially unsustainable yet there has to be a coalition around the potential tax increases and spending cuts to reduce borrowing levels.
