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The US House has passed a proposal to prevent a partial government shutdown.
Economy

The US House has passed a proposal to prevent a partial government shutdown.


On Tuesday, the U.S. House of Representatives casted a vote of 336-95, passing a proposal to prevent a partial shutdown of the government on Saturday. However, the decision also delays any controversial discussions regarding spending priorities until early 2024.

The current funding for all government agencies will end at midnight on Friday, which means Congress and the White House must come to a temporary agreement to continue running the government.

The proposal by new Speaker Mike Johnson, who leads the narrow Republican majority in the House, was approved. It provides funding for certain government agencies until mid-January and others until early February.

Congress must discuss and make decisions on government spending levels for the next fiscal year, which runs through September, by these two dates. If not, they will need to pass another temporary agreement.

Johnson’s plan was approved with 209 votes from Democrats and 127 votes from Republicans. 93 Republicans and 2 Democrats voted against it.

It is probable that the Senate will also authorize the proposal and forward it to President Joe Biden for his approval.

Johnson’s budget proposal has caused anger among a group of conservative members of the Republican party. This is because it does not include the cuts in spending and policy changes that they wanted. Some of these extreme conservatives have stated that they will vote against Johnson’s plan, which has led him to seek support from Democratic members in order for it to be approved.

In late September, a situation arose where former Speaker Kevin McCarthy caused displeasure among the conservative faction by gaining Democratic support to pass a budget that would only last for seven weeks until midnight on Friday. Shortly after this political dispute, eight conservative Republicans joined forces with the united Democratic group to remove McCarthy from his position as Speaker, marking a historical first in the United States.

It seems unlikely that Johnson will encounter a similar outcome, as he is a steadfast conservative and his colleagues who share his views are currently allowing him flexibility in negotiating a deal to avoid a government shutdown.

Johnson explained that his plan to stagger funding expiration dates in early 2024 is aimed at preventing a common practice in Washington: passing a large spending bill right before the Christmas and New Year’s holidays. These appropriations bills are often so extensive that many legislators do not have the opportunity to thoroughly review and understand them as Congress hurries to finish its end-of-year session.

The most recent disagreement involves the conservative faction of the Republican Party in the House, who are pushing for budget reductions. However, their stance is not supported by the majority of moderate Republican representatives, nor by the entire Democratic group in the House, the Senate controlled by Democrats, or President Biden.

Johnson’s proposal aims to maintain spending at the same level as the previous fiscal year, which ended on September 30. He refused to include controversial cultural matters, which are favored by extreme conservative factions. However, he also did not allocate billions of dollars in additional financial aid that Biden had requested for Ukraine and Israel in their ongoing conflicts against Russia and Hamas.

In the upcoming weeks, Congress is anticipated to deliberate on additional financial support for Ukraine and Israel through separate bills.

If government agencies do not receive significant funding before midnight on Friday, certain nonessential operations will be suspended. This includes activities like camping in national parks, providing guidance to taxpayers, and conducting certain scientific research projects.

In the past few days, credit rating agencies have reduced the government’s credit rating due to ongoing uncertainty surrounding the budget. This could result in increased borrowing expenses for the United States, as the national debt has reached nearly $34 trillion.

Source: voanews.com