House Speaker Kevin McCarthy Rejects Stopgap Funding Bill, Raising Risk of Government Shutdown
WASHINGTON, Sept 27 (Reuters) – Republican House Speaker Kevin McCarthy has rejected a stopgap funding bill that was advancing in the Senate, bringing the United States closer to its fourth partial government shutdown in a decade. With just four days remaining until the deadline, the furlough of hundreds of thousands of federal workers and the suspension of numerous government services, including economic data releases and nutrition benefits, loom on the horizon.
The Senate plan, which received bipartisan support on Tuesday, would fund the government until Nov. 17, giving lawmakers more time to negotiate funding levels for the full fiscal year beginning on Oct. 1. However, McCarthy’s focus is currently on reaching consensus on the 12 separate full-year funding bills. So far, only one of these bills has been passed by the House.
“I don’t see the support in the House” for the Senate plan, McCarthy stated, despite the bill garnering support from Senate Republicans, including Minority Leader Mitch McConnell. McCarthy urged President Joe Biden to take action to avoid a government shutdown.
Late into the night, the House was expected to vote on amendments to specific funding bills. However, even if these bills were to be signed into law by Saturday, they would not be sufficient to prevent a partial government shutdown.
The standoff between Republicans and Democrats has attracted the attention of ratings agencies, with Moody’s and Fitch warning about the potential damage to the federal government’s creditworthiness.
House Republicans are pushing for more stringent legislation that addresses immigration at the U.S.-Mexico border and includes deeper spending cuts than those enacted in June.
To prepare for a potential shutdown, executive branch agencies are already making arrangements to determine which federal workers will remain on the job without pay and which ones will be furloughed. Similar preparations are being made in Congress, where thousands of legislative aides and support workers are employed.
In response to McCarthy’s rejection of the stopgap funding bill, Senate Majority Leader Chuck Schumer emphasized the need for bipartisanship to avoid a government shutdown.
The Senate’s bill also includes approximately $6 billion for domestic disaster responses and an additional $6 billion in aid to Ukraine.
McCarthy is facing pressure from hardline members of his own party who opposed a deal he negotiated with President Biden in May. These members are demanding larger spending cuts and could potentially oust McCarthy from his leadership role if he passes a spending bill that requires Democratic votes to pass.
McCarthy indicated that House Republicans may introduce their own stopgap measure on Friday. However, it remains uncertain whether this measure would garner enough votes for passage in the House.
The threat of a government shutdown comes just four months after the United States narrowly avoided defaulting on its $31 trillion national debt, a move that would have had severe repercussions in global financial markets.
Some hardline Republicans, including former President Donald Trump, have dismissed the risks associated with a government shutdown and have even advocated for one. Representative Andy Ogles cautioned reporters, saying, “My advice is buckle up — there’s turbulence ahead.”
As the deadline approaches, the potential shutdown is becoming a topic of concern for citizens and lawmakers alike. A chart depicting the timeline of the 14 previous government shutdowns is provided.
Reporting by Moira Warburton, Richard Cowan, David Morgan, Doina Chiacu, and Susan Heavey; Editing by Scott Malone, Tom Hogue, and Jonathan Oatis.