Congress returns with the clock ticking to avoid federal government shutdown

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Congress returns with the clock ticking to avert government shutdown

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An American flag on the U.S. Capitol Building is seen in Washington, August 31, 2023.

Kevin Wurm|Reuters

A deeply divided Congress returned Tuesday from a monthlong summer season holiday with the clock ticking to pass costs legislation to prevent a federal government shutdown and enhance U.S. emergency situation action financing following several natural catastrophes.

The U.S. federal government will close down at midnight onSept 30 if Congress stops working to pass costs legislation. While the Senate is back in session Tuesday, the House will not go back to work tillSept 12, leaving almost 3 weeks to pass financing prior to the due date.

The White House on Thursday asked Congress to pass a single short-term procedure, called a continuing resolution, to money the federal government at present levels and prevent a shutdown while settlements continue over a lots long-lasting financing expenses.

The leaders of both chambers concur that a short-term procedure is the very best method to prevent a federal government shutdown. Senate Majority Leader Chuck Schumer, D-NY, stated in August that he and House Speaker Kevin McCarthy, R-Calif, concurred that Congress must pass a continuing resolution to extend financing at existing levels for a couple of months.

The continuing resolution is a substitute procedure that would establish for a possible shutdown at a later date if Congress can not in the interim pass the longer-term costs expenses. The Republican- led House of Representatives has actually just passed among a lots expenses required to money the federal government through 2024.

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McCarthy came out openly in assistance of a continuing resolution to keep the federal government running throughout an interview with Fox News last month. He looked for to encourage House Republicans into supporting the procedure with a caution that examinations into the Biden administration would grind to a stop if the federal government closes down.

“If we shut down, all of government shuts it down, investigations and everything else. It hurts the American public,” McCarthy informed Fox News.

But reactionary members of the House GOP are pressing back versus McCarthy. The House Freedom Caucus is attempting to connect federal government financing to legislation that would punish undocumented migration and reboot building of the border wall.

AndRep Marjorie Taylor Greene, R-Ga, informed constituents throughout a city center last Thursday that she would not vote to money the federal government unless the House votes to open an impeachment query into President Joe Biden.

Bank of America experts in a note Tuesday put the possibilities of shutdown as a flip of the coin offered the conditions conservative Republicans are placing on moneying legislation. If a shutdown does take place, it will have a very little influence on monetary markets, UBS experts stated in a note Tuesday.

Bank of America thinks a shutdown is not likely to last long if it does take place offered the prospective political effects for the GOP and the included pressure to money the federal government offered the terrible wildfires in Maui, Hawaii, and the damage from Hurricane Idalia in Florida and the Southeast recently.

FEMA catastrophe financing

The fight over moneying the U.S. federal government comes as the Federal Emergency Management Agency is running low on cash with cyclone season kicking into high equipment this month.

FEMA Administrator Deanne Criswell stated recently that a shutdown would not impact operations that are resolving the instant requirements of the victims of Maui wildfires, Hurricane Idalia and other catastrophes in the future.

But FEMA anticipates to consume the $3.4 billion left in its catastrophe relief fund and run a deficit by the middle of the month in the lack of extra cash. The Biden administration has actually gotten in touch with Congress to pass different financing that consists of an overall of $16 billion to boost the fund.

“We need this money done. We need this disaster relief request met and we need to do it in September — we can’t wait,” Biden informed FEMA workers throughout a check out to the firm’s head office in Washington, D.C., recently.

The administration’s demand to enhance the relief fund might likewise encounter Republican opposition to U.S. military help forUkraine The White House connected the catastrophe cash to an ask for more than $20 billion to back Kyiv throughout its counteroffensive versus the Russian intrusion.

FloridaSens Marco Rubio and Rick Scott, both Republicans, have actually required Congress to think about the catastrophe financing and Ukraine help independently. Scott pledged to present a costs to renew FEMA’s catastrophe fund with $125 billion and promote an instant vote when the Senate returns from summer season holiday

Scott implicated the Biden administration of “playing games” by connecting the FEMA financing to assist forUkraine Rubio informed Fox News, “No matter how anybody feels about Ukraine funding those two things should never be one for the other.”