With the Saturday night government shutdown deadline looming, House Speaker Kevin McCarthy faced a significant setback on Friday afternoon as his Republican-exclusive proposal to avert closure collapsed. Twenty-one Republicans crossed party lines to join Democrats in voting against the plan. Despite this, McCarthy remained resolute, assuring reporters that “it’s not the end yet. I have other ideas.”
In stark contrast, the Senate’s 79-page bill inches closer to a vote, boasting widespread bipartisan support and the potential for a seamless passage. Analysts suggest that this bill is likely to serve as the primary framework for any future compromise. AGF Investments Chief U.S. Policy Strategist Greg Valliere emphasized that a final agreement would necessitate Democratic involvement. “I can’t envision a final deal without Democrats,” Valliere stated. “It’s just a matter of time before McCarthy and other Republicans have to throw in the towel and agree that without Democrats, this could go on for months.”
Treasury Secretary Janet Yellen expressed her concerns on Friday during a speech in Savannah, Georgia, cautioning that a shutdown would “hurt American families and cause economic headwinds that could undermine the progress we’re making.” Meanwhile, Speaker McCarthy, in another tense exchange with reporters, maintained his defiance but refrained from divulging specifics regarding his new strategies to break the impasse and avert an impending shutdown.
In contrast to McCarthy’s struggles, the Senate’s bill proposes to fund the government until November 17th, allocating approximately $6 billion for the war effort in Ukraine and an additional $6 billion for disaster relief endeavors in locations like Maui and Florida.
Negotiations in the Senate remain fluid, with discussions ongoing about the potential inclusion of border provisions.
President Biden and his team have largely refrained from direct involvement in the fray but have issued repeated warnings regarding the ramifications of a shutdown.
With the looming threat of a government shutdown, the onus is now on McCarthy, President Biden, and both chambers of Congress to collaborate on a plan, irrespective of which party holds the majority. The nation watches with bated breath as the fate of government operations hangs in the balance.
Source: Yahoo Finance
