House Republicans Pursue Two-Step Plan for Funding Government
House Republicans are pursuing a two-step plan for funding the government, as Congress faces another spending deadline next Friday. Newly elected House Speaker Mike Johnson announced the plan on a GOP conference call with members, arguing that it is necessary to place House Republicans in the best position to fight for conservative victories.
The two-step plan involves extending funding until January 19 for military construction, Veterans Affairs, transportation, housing, and the Energy Department. The second part of the plan would extend funding until February 2 for the rest of the government. However, neither bill includes additional aid for Israel or Ukraine.
While the two-step approach has been widely pushed by Republican hardliners, it has been dismissed by many senators as a complicated solution. Despite this, it could be harder for Democrats to reject, since funding for the agencies would stay at current levels.
The House Minority Leader, Hakeem Jeffries, has slammed the prospect of a two-step resolution, calling it a “right-wing joyride which would crash and burn the economy.”
Failure to pass a spending plan by next Friday will result in many government operations grinding to a halt until Congress acts. Each federal agency must come up with a contingency plan outlining which functions will continue during a shutdown and which will stop, as well as how many employees will continue working and how many will be furloughed until the shutdown ends.
On a national scale, government shutdowns can have far-reaching economic consequences, hampering growth and promoting uncertainty, especially if they drag on. Some of these costs include raising the unemployment rate, lowering the growth in gross domestic product, and raising the cost of borrowing.
This story has been updated with additional information. CNN’s Shania Shelton contributed to this report.