Monday, 23rd December 2024

Shutdown bites economy as Democrats reject Trump invitation to talk

The shutdown dragged into its 25th day on Tuesday with neither Trump nor Democratic congressional leaders showing signs of bending

Tuesday, 15th January 2019

The U.S. economy is taking a larger-than-expected hit from the partial government shutdown, White House estimates showed on Tuesday, as congressional Democrats rejected President Donald Trump’s invitation to discuss the issue.

The shutdown dragged into its 25th day on Tuesday with neither Trump nor Democratic congressional leaders showing signs of bending on the topic that triggered it - funding for the wall Trump promised to build along the border with Mexico.

Trump invited a bipartisan group of members of Congress for lunch at 12:30 p.m. EST (1730 GMT) to discuss the standoff but the White House said Democrats turned down the invitation. Nine Republicans were expected to attend.

Trump is insisting Congress shell out $5.7 billion as about 800,000 federal workers go unpaid during the partial shutdown.

“It’s time for the Democrats to come to the table and make a deal,” said White House spokeswoman Sarah Sanders.

House Democratic leaders said they did not tell members to boycott Trump’s lunch but had pressed those invited to consider whether the talks would be productive or produce a photo-op for the president.

“We are unified,” House Majority Leader Steny Hoyer told reporters on Tuesday morning.

The Trump administration had initially estimated the shutdown would cost the economy 0.1 percentage point in growth every two weeks that employees were without pay.

But on Tuesday, there was an updated figure: 0.13 percentage point every week because of the impact of work left undone by 380,000 furloughed employees as well as work left aside by federal contractors, a White House official said.

The partial shutdown is the longest in U.S. history and its effects have begun to reverberate across the country.

Longer lines have formed at some airports as more security screeners fail to show up for work while food and drug inspections have been curtailed and farmers, stung by recent trade spats, have been unable to receive federal aid.