In a pivotal move, the US Congress, with substantial support from Democrats, successfully passed a temporary funding bill late on Saturday, averting the threat of a government shutdown. The resolution came after Republican House Speaker Kevin McCarthy abandoned a previous demand from hardliners in his party for a strictly bipartisan bill. The Democratic-majority Senate displayed unity by voting 88-9 in favor of the measure, effectively preventing what could have been the fourth partial shutdown of the federal government in a decade. President Joe Biden swiftly signed the bill into law.
The journey to this resolution was marked by challenges, as McCarthy had to distance himself from the hardline stance of some within his party who insisted on House passage with only Republican votes. This shift may potentially lead to attempts by far-right members to remove him from his leadership position. In response, the House of Representatives voted 335-91 to fund the government until November 17, with more Democrats than Republicans showing support.
Federal agencies had already formulated detailed plans in anticipation of a potential shutdown, outlining which services would continue and which would cease. Essential services such as airport screening and border patrols were slated to continue, while others, including scientific research and nutritional aid for impoverished mothers, would have been halted.
A government shutdown would have had significant ramifications, affecting the livelihoods of millions of state employees and leading to the closure of numerous federal services, from national parks to financial regulators.
Avoiding a shutdown is a relief for both the American people and federal agencies. Senate Majority Leader Chuck Schumer emphasized the importance of bipartisanship in avoiding such scenarios and commended Chairman McCarthy for heeding their message.
Earlier, Treasury Secretary Janet Yellen expressed grave concerns about the adverse impact a government shutdown could have on the US economy. She characterized such a scenario as “reckless,” highlighting the potential harm to businesses and consumers, as well as the erosion of confidence in the economic framework. Yellen warned that this could lead to reduced expenditures and investments, negatively affecting economic growth and stability.
