Once again, the US was threatened with a standstill in government business – again the saving agreement came at the last moment. But that doesn’t mean the problems are over.
Washington – The US Congress averted a feared “shutdown” of the government once again shortly before the deadline. The House of Representatives and Senate approved a transitional arrangement on Thursday evening (local time) that will prevent government business from coming to a standstill.
This ensures the financing of the state apparatus until February 18. Initially, some Republican senators had blocked themselves against a quick vote. The background was a dispute over vaccination regulations in the fight against Corona. By averting the “shutdown”, however, a crisis has only been averted for the time being – a far bigger problem is already waiting for the parliamentarians.
Deadline Friday at midnight
The current transitional budget runs out this Friday at midnight. Until then, Congress had to adopt a budget regulation, otherwise there would have been a “shutdown”. The budget year actually ended at the end of September. At the last minute, Congress decided on a transitional budget until December 3rd. The new interim solution, for which Congress has now voted, provides that the government can continue to work at the current spending level until mid-February. In addition, there are several billion US dollars for evacuees from Afghanistan. Now President Joe Biden has yet to sign the law.
The passage of the law had been delayed for days. The background was a conflict in the Senate. Some Republicans there threatened to delay the voting process. You do not agree with President Biden’s corona vaccination regulations. Eventually, however, Senate Democratic majority leader Chuck Schumer announced an agreement. So it was still possible to vote on the financing proposal. If the Senate had not approved the draft law before the deadline, there would probably have been at least a short “shutdown” over the weekend.
US government often in budget dispute
“Shutdowns” by parts of the government occur more often in the USA. This means that some state employees would have to be given compulsory leave or work temporarily without pay. Depending on the length, certain government services could be restricted or payments could be delayed. Three years ago, a bitter budget dispute paralyzed parts of the US government for several weeks at the turn of the year. With a duration of five weeks, it was the longest “shutdown” in US history. At that time, the main focus was on financing the wall on the border with Mexico that the then US President Donald Trump was aiming for.
With the prevention of the “shutdown” only one problem is solved for now. Next, the MPs have to agree on an increase in the debt limit – otherwise the US will soon face default. According to the independent budget bureau of Congress, this could be the case before the end of the month. The Treasury Department recently warned that President Biden’s government could run out of money as early as mid-December. A default in the world’s largest economy could trigger a global financial crisis and economic downturn.
Extended – not canceled
Like the impending shutdown, the US debt ceiling was a major headache a few weeks ago. In October it was just possible to avert an impending payment default with a brief increase in the upper debt limit. This gave the government financial leeway at least until December. This interim solution was preceded by a violent dispute between Democrats and Republicans. But even then it was clear that the problem would only be resolved and by no means solved. dpa
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