All signs are pointing toward a looming government shutdown as the clock ticks down to midnight Tuesday. Despite a fleeting moment of hope during Monday’s meeting between President Donald Trump and congressional leaders, where Trump showed a rare willingness to extend Obamacare credits—a key demand from Democrats—the situation quickly reverted to a standoff.

Hours after the meeting, President Trump stirred controversy by posting a deepfake video on social media, depicting Senate Minority Leader Chuck Schumer in a negative light and House Minority Leader Hakeem Jeffries in a sombrero and mustache, which Jeffries condemned as bigoted. This move has significantly dampened the prospects of any imminent agreement, with no further meetings scheduled to resolve the deadlock.

On the policy front, there was a brief discussion about the extension of Obamacare credits in Monday’s meeting. Vice President JD Vance emphasized that these discussions should occur with the government operational, hinting that a shutdown could complicate negotiations. While Trump’s gesture was aimed at appeasing some GOP factions that favor the extension—with modifications for conservative tastes—Democrats have resisted any changes. The issue of adjusting income caps on the subsidies was tentatively opened for negotiation by Rep. Richard Neal, the leading Democrat on the House Ways and Means Committee.

Neal expressed a willingness to discuss and negotiate the income threshold for receiving Obamacare subsidies, particularly for high earners, but firmly opposed using this issue as a lever to force a government shutdown. “I think the question of subsidies for people that are making half a million dollars — I mean, that should be subject to a discussion and negotiation as well, but that shouldn’t become the pretense for shutting down the government,” Neal stated.

As the Senate prepares for another round of votes on Tuesday on both the House-passed stopgap and a Democratic proposal, expectations are low for any breakthrough, with outcomes expected to fall along party lines. Senate Majority Leader John Thune has already prepared for further action by filing cloture to set up another vote on the GOP’s continuing resolution for Wednesday.

Amidst these developments, Democrats are intensifying their shutdown messaging. A series of events is scheduled for Tuesday, including press conferences and a digital media row, signaling a robust pushback against the shutdown narrative.

Additionally, legislative progress on other fronts, such as the National Defense Authorization Act (NDAA), is under threat. Senate Armed Services Chair Roger Wicker urged completion of the defense policy bill, which faces delays if the government shuts down.

As the deadline approaches with no resolution in sight and political tensions at a high, the possibility of a government shutdown seems increasingly inevitable, casting a shadow over negotiations and the functioning of the government.