House Speaker Kevin McCarthy has encountered repeated challenges in his attempts to avert an impending US government shutdown, primarily from the most conservative members within his caucus. Expressing his frustration, McCarthy acknowledged the hurdles he faces in rallying support.
A setback emerged on Tuesday as a bill proposing a one-month extension to keep the government operational encountered significant resistance, even from members within McCarthy’s own party. McCarthy had advocated for an 8% spending cut across various agencies, coupled with contentious border provisions, in exchange for this temporary solution.
While the compromise passed through the House’s Rules Committee on Monday night, it faced a halt on Tuesday following a surge of dissenting statements, casting doubt on McCarthy’s ability to unify his members behind the proposal. Many conservatives argued that the proposal fell short of their expectations.
Representative Anna Paulina Luna (R-Fla.) estimated that over 17 House Republicans currently oppose the deal, terming it a “MISTAKE,” and calling for additional policy provisions that would likely face rejection in the Senate. Another count, by Representative Andy Ogles (R-Tenn.), set the number at 18.
Even some of McCarthy’s previous allies have announced their opposition. Representative Marjorie Taylor Greene, an influential Congresswoman from Georgia, declared herself as a firm “NO.” This marks a departure from her previous alignment with McCarthy on issues like his pursuit of the speakership.
With unanimous Democratic opposition expected, House GOP leadership can only afford to lose four votes before the gambit collapses.
On Tuesday afternoon, a procedural vote on the deal was abruptly delayed, revealing McCarthy’s current lack of votes to pass the deal.
McCarthy now confronts a critical juncture in deciding whether he can rally ample backing for the bill in its present state, if adjustments are required to appease the conservative faction, or if the proposal is bound for failure in the face of the looming US government shutdown.
As the possibility of a government shutdown looms, many in the financial sector are preparing for what some lawmakers from both parties deem an inevitable outcome.
Neil Bradley, Executive Vice President of the US Chamber of Commerce, emphasized, “It’s not inevitable, a shutdown is a choice.” He stressed that this recurring event is becoming too commonplace, warning of its widespread economic repercussions.
The debate now centers on the duration of the potential shutdown. If prolonged into the winter, it could lead to more pronounced economic effects compared to previous shorter or partial government closures.
Economists are grappling with estimating the economic costs, potentially making this one of the most expensive shutdowns in history. This uncertainty is exacerbated by concurrent economic events, such as the ongoing UAW strike and the resumption of student loan payments.
Many businesses rely on government services and could face adverse impacts if the deadlock persists, according to Bradley.
Treasury Secretary Janet Yellen added her voice, cautioning that a shutdown poses an “unnecessary risk to the economy and to the normal functioning of government.” She urged bipartisan cooperation while affirming her confidence in the underlying strength of the economy.
McCarthy faced similar internal challenges last week when he acquiesced to calls for an impeachment inquiry against President Joe Biden, largely in a bid to pacify his staunchest conservative members. However, it quickly became evident that this move did little to alleviate pressure for a shutdown.
Despite insistence by McCarthy that a US government shutdown would ultimately benefit President Biden, he has yet to sway his most unyielding members. Some opponents are now openly advocating for McCarthy’s removal.
The ongoing debate over the budget is further complicated by concerns over McCarthy’s job security. While proposing a more moderate option and seeking Democratic votes might seem a logical solution, it would likely trigger attempts to oust McCarthy.
Representative Matt Gaetz has threatened to call for a vote to replace McCarthy each day Congress is in session, citing the rules that permit such a motion.
Although McCarthy has often challenged those who underestimate him, his right flank has coalesced in recent days, asserting that past compromises are lessons they are unwilling to repeat. Representative Gaetz emphasized, “It’s gut check time for everyone.”
Source: Yahoo Finance
