House Speaker McCarthy Faces High Stakes in Avoiding Government Shutdown

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Title: U.S. House Speaker Kevin McCarthy Faces Major Challenge as Government Shutdown Looms

Subtitle: McCarthy attempts to navigate spending legislation without losing speaker position

WASHINGTON, Sept 18 (Reuters) – U.S. House of Representatives Speaker Kevin McCarthy is facing a significant test of his leadership as he races to avert a government shutdown in less than two weeks while grappling with opposition from hardline conservatives. With the deadline for passing spending legislation fast approaching, McCarthy is working to find a solution that President Joe Biden can sign into law to keep federal agencies operational.

The House, currently controlled by Republicans, holds a slim 221-212 majority, leaving McCarthy with limited maneuvering room. Despite the challenge, McCarthy remains determined to fight for a resolution that ensures U.S. security both domestically and abroad.

To overcome the impasse, McCarthy plans to bring two spending bills to the House floor this week, including a short-term stopgap measure. His goal is to gauge their support and determine if they can pass. “We should show the American public our ideas and be able to pass them,” McCarthy stated. He emphasized the importance of being “rational, responsible, and reasonable.”

The ongoing political brinkmanship has raised concerns among Wall Street investors. Credit rating agency Fitch downgraded the U.S. debt rating to AA+ earlier this year due to repeated down-to-the-wire negotiations that threatened the government’s ability to meet financial obligations.

However, the obstacles do not solely lie within the House. A Senate Republican holdout, Tommy Tuberville, has also hindered the confirmation of numerous senior military officers due to his opposition to policies regarding abortion access for female service members.

McCarthy has vowed to push forward this week on an $886 billion fiscal 2024 defense appropriations bill. Last week, hardliners withheld their support, demanding a lower fiscal 2024 spending level than agreed upon by McCarthy and Biden in May. The vote on this bill is expected to take place on Wednesday.

On Thursday, McCarthy intends to bring a stopgap measure, often referred to as a “continuing resolution” (CR), to the floor. If passed, the measure would keep federal agencies functioning until Oct. 31, providing Congress more time to pass comprehensive appropriations for 2024. The CR would cut discretionary spending by approximately 8% for non-defense agencies but would include restrictions on immigration and the border.

Critics argue that the proposed bill does not go far enough in cutting spending and retains funding for U.S. Special Counsel Jack Smith, who has charged former President Donald Trump with felonies related to classified documents and attempts to overturn the 2020 election.

The chances of either bill gaining Democratic support and becoming law are slim, even if they receive enough Republican votes in the House. Senate Majority Leader Chuck Schumer has called the House Republican CR agreement “slapdash and reckless,” advocating for a bipartisan solution to avoid a government shutdown.

Some hardline members of the House Freedom Caucus have openly embraced a shutdown as a negotiating tactic to advance their spending and conservative policy priorities. However, Republican leaders warn that such a move could force direct negotiations with Senate Democrats and potentially result in bipartisan legislation that could pass both chambers.

Should McCarthy fail to navigate the spending legislation successfully, he faces the potential ouster from his position as House Speaker, a development that some conservatives believe would be the end of his speakership.

As the Sept. 30 deadline approaches, the fate of the government’s operations lies in the balance, leaving McCarthy with an immense challenge ahead.

Reporting by David Morgan, additional reporting by Richard Cowan and Moira Warburton; Editing by Scott Malone, Sandra Maler, Will Dunham and Shri Navaratnam

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