Government shutdown imminent as House rejects funding bill.
Hardline Republicans Reject Bill, Government Shutdown Looms
Hardline Republicans in the House of Representatives on Friday rejected a bill proposed by Speaker Kevin McCarthy to temporarily fund the government, making it all but certain that federal agencies will partially shut down beginning Sunday.
The House rejected in a 232-198 vote a measure to fund the government for 30 days to give lawmakers more time to negotiate. That bill would have cut spending and imposed immigration and border security restrictions, Republican priorities that have little chance of passing the Democratic-majority Senate.
The Senate, meanwhile, on a broad bipartisan basis has been advancing a similar bill, known as a continuing resolution or CR, to fund the government through Nov. 17.
“It’s not the end yet, I’ve got other ideas,” McCarthy told reporters following the defeat on a bill he had backed.
The National Park Service will close, the Securities and Exchange Commission will suspend most of its regulatory activities, and disrupt pay to up to four million federal workers beginning at 12:01 a.m. ET on Sunday if Congress does not pass a spending package that can be signed into law by President Joe Biden before then.
Treasury Secretary Janet Yellen said on Friday that a government shutdown would ”undermine” U.S. economic progress by idling key programs for small businesses and children, and could delay major infrastructure improvements.
The shutdown would be the fourth in a decade and comes just four months after a similar standoff brought the federal government within days of defaulting on its $31 trillion-plus in debt. The repeated brinkmanship has raised worries on Wall Street, where the Moody’s ratings agency has warned it could damage the nation’s creditworthiness.
McCarthy sought to use the CR’s border provisions to pressure at least nine hardline holdouts into backing the measure, and stepping back from the brink of a shutdown.
“Every member will have to go on record of where they stand: Are they willing to secure the border, or do they side with President Biden on an open border and vote against a measure to keep government open?” McCarthy told reporters.
Stakes Are High, Hardliners Demand More
Hardliners who oppose the measure want Congress to press on instead with full-scale spending legislation for fiscal 2024.
McCarthy succeeded in passing three of four bills late on Thursday that would fund four federal agencies. The bills were written to accommodate hardline conservative demands and stand no chance of passing the Democratic-controlled Senate, though even if they became law, they would not avert a partial shutdown because they do not fund the full government.
McCarthy and Biden in June agreed to a deal that would have funded the government with discretionary spending at $1.59 trillion in fiscal 2024, but House Republican hardliners are demanding another $120 billion in cuts plus tougher legislation that would stop the flow of illegal immigrants at the U.S. border with Mexico.
A shutdown would delay vital economic data releases, which could trigger financial market volatility, and delay the date that retirees learn how much their Social Security payments will rise next year. Social Security payments themselves would continue.
The current fight focuses on a relatively small slice of the $6.4 trillion U.S. budget for this fiscal year. Lawmakers are not considering cuts to popular benefit programs such as Social Security and Medicare.
Several hardliners have threatened to oust McCarthy from his leadership role if he passes a spending bill that requires any Democratic votes to pass, an outcome almost guaranteed given that any successful House bill must also pass the Senate, controlled by Democrats 51-49.
Former president Donald Trump, Biden’s likely election opponent in 2024, has taken to social media to push his congressional allies toward a shutdown.
House Republicans expressed annoyance late Thursday with their hardline colleagues, who have stymied the process at almost every turn.
“They can’t set a fire, call the fire department, turn off their water supply and then blame them for not putting out the fire,” Rep. Dan Crenshaw (R., Texas) told Reuters. “That’s kind of what’s happening right now.”
Rep. Mike Garcia (R., Calif.), a member of the House Appropriations Committee, described himself as “frustrated.”
“We don’t have a good position going into what would be a negotiation with the Senate,” he told Reuters on Thursday.
Rep. Richard Neal (Mass.), the ranking Democrat on the tax-writing House Ways and Means Committee, described the appropriations process as “the worst in the 35 years I’ve been here.”
(Reporting by Moira Warburton and David Morgan; editing by Scott Malone, Alistair Bell, and Jonathan Oatis)
How is Speaker Kevin McCarthy attempting to address the funding issue and avoid a shutdown, and what alternative ideas and strategies does he have in mind
Vels of border security and immigration measures. They argue that the current proposal does not go far enough in addressing their concerns.
The hardline Republicans’ rejection of the bill has raised the stakes and increased the likelihood of a government shutdown. Without a funding agreement in place, federal agencies will be forced to partially shut down, causing disruptions in various sectors.
The proposed bill, which aimed to fund the government for 30 days, included spending cuts and restrictions on immigration and border security. However, these priorities align more closely with Republican interests and have little chance of passing in the Democratic-majority Senate.
On the other hand, the Senate has been working on a bipartisan bill to fund the government through November 17. This bill has been moving forward with support from both sides of the aisle, indicating a willingness to compromise and avoid a shutdown.
Even though the defeat of the bill in the House is a setback, Speaker Kevin McCarthy remains determined to find a solution. He expressed confidence in his ability to come up with alternative ideas and strategies to address the funding issue before the shutdown deadline.
The potential consequences of a government shutdown are significant. National parks will close, the Securities and Exchange Commission will suspend regulatory activities, and millions of federal workers may face disruptions in their pay. Treasury Secretary Janet Yellen has warned that a shutdown would undermine economic progress and could delay infrastructure improvements.
This possible shutdown would mark the fourth in a decade, and it comes just months after a similar standoff that threatened the nation’s debt. The repeated occurrences of these situations have raised concerns about the nation’s financial stability and creditworthiness.
In an effort to gain support for the bill, McCarthy attempted to leverage the border provisions within the continuing resolution. By pressuring hardline holdouts to back the measure, he hoped to avoid a shutdown and ensure the funding of the government.
The hardline Republicans, however, want Congress to focus on comprehensive spending legislation for fiscal 2024. They are pushing for additional cuts in spending and stricter measures on border security and immigration. These demands reflect their commitment to their conservative principles and their desire to see more substantial changes in the government’s approach.
In conclusion, the rejection of the bill proposed by Speaker Kevin McCarthy by hardline Republicans in the House of Representatives has significantly increased the likelihood of a government shutdown. The differences in priorities and demands between the two parties make reaching a compromise challenging. The consequences of a shutdown would be far-reaching and could have detrimental effects on the economy and government operations. It remains to be seen whether alternative solutions can be found to avert a shutdown and ensure the funding of the government.
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