(March 14): Senate Democratic leader Chuck Schumer had two choices as the clock ticked down to the government funding deadline: drop his threat to block the Republican bill or force a disruptive March 15 shutdown.
 
The New York lawmaker ultimately opted for the path of least resistance on Thursday after a day of contentious meetings among minority Democrats, who had hoped to use their limited leverage on a spending package to include some restraints on Elon Musk’s DOGE’s cost-cutting crusade.

The political manoeuvring took place as markets, spooked over President Donald Trump’s tariff campaign, have been in headlong retreat. The S&P 500 fell 1.4% on the day, bringing its three-week rout past 10%, a level that meets the technical threshold for a correction. It’s down more than 6% for the year. The tech-heavy Nasdaq 100 Index, also in a correction, tumbled 1.9% on the day.    

Schumer’s was an on-brand choice for a party that has pitched itself as the voice of reason in Trump’s Washington. Several Democrats worried aloud in recent days about the political consequences of a government shutdown and wanted to train their fire instead on bigger battles over Medicaid and other broadly supported government benefits.

Yet Schumer’s decision, which all but guarantees the government will remain open, also risks alienating a growing number of restive voters and lawmakers who have become frustrated with the party’s fumbling for a response to Trump. His announcement provoked furious responses.

“Please grow a spine. And quickly,” Biden domestic chief policy adviser Susan Rice said in a social media post savaging Schumer. “Why should Dems roll over and play dead?”

Trump offered praise in a Friday morning social media post, which may stoke more anger at Schumer in the party’s progressive wing.

“Congratulations to Chuck Schumer for doing the right thing — Took “guts” and courage!” Trump said. “This could lead to something big for the USA, a whole new direction and beginning!”

The party’s most dedicated and active voters are clamouring for a confrontation to constrain Trump and Musk’s efforts to dismantle entire federal agencies. And several moderates, including Virginia’s Mark Warner and Arizona’s Mark Kelly, were also primed on Thursday for the clash. 

“I know what I’m doing,” freshman Ruben Gallego, an Arizona Democrat, brusquely told reporters on Thursday afternoon as he prepared to fight the Republican bill. 

The tension over the shutdown within the Democratic caucus was clear on Thursday as shouting could be heard for the third day in a row outside a closed-door party lunch. The growing list of moderates lining up to battle Republicans seemed to indicate a tidal change, one that made a shutdown far more likely. 

That momentum was short lived. Just hours later, Schumer backed down in a speech on the Senate floor, with funding for the government scheduled to lapse in less than 30 hours. 

Republicans likely need seven other Democrats to join Schumer, who wouldn’t say if there were now enough votes within his party to overcome a filibuster. 

The necessary ayes could come from senators like Gary Peters of Michigan, who is retiring and was mum on his decision. Schumer loyalists like Kirsten Gillibrand of New York and Jack Reed of Rhode Island are also expected to vote to advance the bill along with Pennsylvania’s John Fetterman who has announced he is a yes.

Democrats, Schumer indicated, would vote their conscience on the legislation rather than as directed by leadership. But the long-time leader carries much influence within the caucus and he’s likely to amass enough support to avert a shutdown.  

A shutdown would be “much worse” for the country than accepting the Republican funding package and “would give Donald Trump and Elon Musk carte blanche to destroy vital government services,” Schumer said.

He added that a shutdown would also make it difficult for Democrats to focus public attention on the party’s criticism of Trump’s economic policies and turmoil in financial markets driven by the president’s tariff threats.

Schumer identified no concessions he received to drop his threat to block the spending bill.

He had declared just a day earlier his party would block a Republican measure to finance the government through Sept 30 and urged the GOP to accept a Democratic plan for short-term-funding through April 11 instead.

The legislation to fund the government was a rare moment of leverage for Democrats, who have lost the White House and don’t control either chamber of Congress. But Republican leaders rebuffed their efforts to include any constraints on Musk’s Department of Government Efficiency.

House Republicans passed legislation on Tuesday to finance the government, daring moderate Senate Democrats in the Senate to block the measure over their objections. They then left Washington for a two-week break.

In the Senate, 60 votes are needed to cut off procedural obstacles and Republicans only have 53 senators in the chamber. Republican Rand Paul of Kentucky has said he opposes the GOP spending package.

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