- In the USA, politicians in the House of Representatives continue to struggle for a compromise in the budget debate.
- Twelve hours before the deadline, a provisional solution is now being discussed.
- Top Republican Kevin McCarthy has announced a new attempt to prevent the so-called shutdown at the last moment.
- If a solution is not found by 6 a.m. Swiss time tomorrow morning, there is a risk of a shutdown.
“We will put clean bridge financing on the table to keep the government open for 45 days,” announced the chairman of the US House of Representatives. This should give time to agree on a proper federal budget.
No Ukraine aid planned
The interim budget should contain money for disaster control and border security. However, the draft does not provide any help for Ukraine, which is being attacked by Russia. The Republicans have a slim majority in the House of Representatives.
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Under pressure: Top Republican Kevin McCarthy wants to make one last attempt to prevent the shutdown.
AP Photo/J. Scott Applewhite
It is completely unclear whether McCarthy has any support within his own ranks for the interim budget. The radicals in his party had recently opposed another draft that already contained significant savings. It is unclear what exactly they are actually demanding – the parliamentary group in the House of Representatives is completely fragmented.
Even if McCarthy received enough support from his party colleagues for his new bill, it is more than doubtful that it would pass the Senate. US President Joe Biden’s Democrats have the majority there. In addition, the time is actually too short. McCarthy’s new draft could simply serve to ultimately blame the Democrats for a shutdown.
Military personnel continue to work without pay
The term of the budget approved by the US Congress at the end of last year ends on Sunday night. By then, a new federal budget or a transitional budget would have to be decided in order to avert insolvency. A shutdown would mean that state funding for public services would no longer be secure. Hundreds of thousands of state employees could no longer work, authorities and other government offices remained closed.
Many ministries and authorities have emergency plans for this eventuality. So most military members continue to work – but for the time being without pay. How severe a shutdown affects everyday life and the economy in the USA depends on its length.