2023-09-29 23:48:36
By Moira Warburton and Richard Cowan
WASHINGTON (Reuters) – Radical Republicans in the U.S. House of Representatives on Friday rejected a bill proposed by their leader to temporarily fund the government, making it all but certain that federal agencies will partially close from Sunday.
The Chamber of Deputies rejected by 232 votes to 198 a measure to finance the government for 30 days to give parliamentarians more time to negotiate. That bill would have cut spending and imposed restrictions on immigration and border security, Republican priorities that had little chance of passing in the Democratic-majority Senate.
Meanwhile, the Senate, on a broad bipartisan basis, has advanced a similar bill, known as a continuing resolution or CR, to fund the government until November 17.
“It’s not the end yet; I have other ideas,” Republican House Speaker Kevin McCarthy told reporters after the defeat of a bill he had supported.
McCarthy did not immediately say what those ideas were.
The National Park Service will shut down, the Securities and Exchange Commission will suspend most of its regulatory activities and will halt pay for up to 4 million federal workers starting at the first minute of Sunday (local time) if Congress does not pass a package of spending that could be sanctioned by President Joe Biden before then.
U.S. Treasury Secretary Janet Yellen said on Friday that a government shutdown would “undermine” U.S. economic progress by suspending important programs for small businesses and children, and could delay major infrastructure improvements.
The shutdown would be the fourth in a decade, and comes just four months after a similar impasse brought the federal government just days away from defaulting on a debt of more than $31 billion. The risk raised concerns on Wall Street, where ratings agency Moody’s warned it could hurt the country’s creditworthiness.
Biden warned that a shutdown could have a major impact on the military.
“We cannot play politics while our troops are in question. It’s an absolute dereliction of duty,” Biden, a Democrat, said at Gen. Mark Milley’s retirement ceremony.
McCarthy hoped the Republican CR’s border provisions would pressure at least nine hard-line holdouts to support the measure — and to back away from the brink of walkout.
Democrats, however, warned that the Republican CR would mean a 30% cut in spending on benefits for poor women and children and a 57% cut in resources to fight wildfires, and would increase spending on defense and homeland security.
McCarthy managed to pass three of four bills Thursday that would fund four federal agencies. The bills were written to accommodate radical conservative demands and have no chance of passing in the Democratic-controlled Senate, although even if they became law they would not prevent a partial shutdown because they do not fund the entire government.
McCarthy and Biden agreed in June on a deal that would have funded the government with $1.59 trillion in discretionary spending in fiscal 2024, but hardline House Republicans are demanding another $120 billion in cuts, plus legislation tougher policy that would impede the flow of immigrants across the US-Mexico border.
A government shutdown would delay the release of vital economic data, which could trigger volatility in financial markets.
“We are in the midst of a months-long Republican civil war that now threatens a catastrophic government shutdown,” top House Democrat Hakeem Jeffries told reporters after the vote.
(Reporting by Moira Warburton and David Morgan)
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