| 27 September 2023
| Christie Anto
Washington D.C., USA - In a crucial move to prevent an imminent government shutdown over budget legislation, leaders in the United States Senate have reached a bipartisan stopgap agreement. The deal, which has garnered support from both Republicans and Democrats, would keep the government funded for an additional six weeks while allocating approximately $6 billion in short-term aid for Ukraine in response to the ongoing Russian invasion.
However, this bipartisan accord faces substantial challenges as it heads to the House of Representatives, where far-right Republicans have vowed to oppose it if it reaches the floor.
With less than five days remaining until the September 30 deadline at midnight (04:00 GMT on Sunday) for passing budget legislation, the stakes are high. Failure to reach an agreement would result in the cessation of non-essential government functions, leaving federal services in limbo and millions of employees without their paychecks. Furthermore, this could negatively impact the United States' credit rating, potentially leading to higher interest rates.
The US's creditworthiness has already been called into question, with Fitch Ratings downgrading the nation's rating from AAA to AA+ in August due to a "steady deterioration in standards of governance." Moody's has issued a warning that it may follow suit if the budget standoff is not resolved promptly.
Republicans, particularly those on the far-right, have expressed strong reservations about the current levels of government spending, demanding substantial cuts, especially in foreign aid, such as the proposed $6 billion for Ukraine.
Republican Senator JD Vance of Ohio stated, "This will certainly lead to a government shutdown," referring to the allocation for Ukraine in the stopgap proposal.
While the measure is expected to pass the full Senate in the coming days, House Speaker Kevin McCarthy faces the challenge of a divided party. Some far-right members have threatened to remove him from his leadership position if he cooperates with Democrats to pass budget legislation. When asked about the potential threat to his speakership, McCarthy responded assertively, "I'm not worried about whether there's a speakership place or not. The only thing I care about is fighting for the American people."
In January, McCarthy faced strong opposition from the far-right, taking five days and 15 rounds of voting to secure the speakership.
However, McCarthy did express alignment with some far-right priorities, suggesting that aid to Ukraine and stopgap funding for the government should be separate issues. He also called on Democrats to prioritize investment in border security.
"I don't think Ukraine aid should be taken up in the supplemental," McCarthy stated. "I don't quite understand, when you have all these people across the country talking about the challenges happening in America today, that people would go and say, 'Oh, we need to do Ukraine and ignore what's happening along our border.' I think that would be the wrong approach."
With Republicans holding a narrow 221-member majority in the House out of 435 seats, McCarthy faces the daunting task of passing bipartisan legislation to avert a government shutdown or rallying almost every member of his party.
In response to the budget standoff, President Joe Biden, a frequent target of conservative complaints over budgeting, accused "a small group of extreme House Republicans" of attempting to shut down the government to further their priorities. He emphasized his readiness to cooperate but criticized House Republicans for refusing to confront the extremists in their party, warning that "now, everyone in America could be forced to pay the price."
The Senate concluded its proceedings on Tuesday after a procedural vote to advance the stopgap deal received overwhelming support, with 77 votes in favor and only 19 against.
Senate Majority Leader Chuck Schumer underscored the importance of bipartisanship, stating, "The only solution for avoiding a harmful government shutdown is bipartisanship. We are now right at the precipice."
As the nation stands on the brink of a government shutdown, the fate of the stopgap measure and the resolution of the budget standoff hang in the balance, with political divisions threatening to impact the lives of millions of Americans and the nation's financial stability.
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