As expected, the Senate has adopted a proposal to continue financing the state apparatus, a few hours before the deadline expires.
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The proposal passed Thursday by a good margin – 65 to 35 votes – when Republicans in opposition voted with the Democrats in the Senate.
“This is a good outcome,” Democrat leader Chuck Schumer said ahead of the vote, whose outcome was announced in advance.
The House of Representatives then knocked through the decision with broad cross-party support, a few hours before the funding was to expire.
Buying time
The proposal will ensure financing of the public sector until 3 December. Thus, politicians buy themselves time to create budgets for federal authorities.
But even if one crisis was averted, another is lurking. If there is no agreement to increase the US debt ceiling once again, this could lead to major consequences for the economy.
To secure the funding, the Democrats had to remove a proposal to temporarily raise the debt ceiling. Finance Minister Janet Yellen believes this ceiling must be raised by October 18 to avoid a financial crisis, but Republicans believe Democrats can and must solve this problem on their own.
Trying to get through Biden’s packages
Although everyone wants to avoid a crisis, Republicans will not increase the already sky-high debt ceiling just one year before the next congressional election. The first attempt to raise this roof was stopped on Tuesday night. The Democrats will probably try again soon.
Democrats are also fighting for President Joe Biden’s major infrastructure and welfare packages, which will total more than $ 4 trillion. One of the packages, the so-called crisis package, will be financed in part through higher taxes on the rich and increased corporation tax, which Republicans are strongly opposed to.
If Biden succeeds in getting through these billion-dollar packages, it could be a decisive moment in his presidency. But Republicans are reluctant to give him political victories. Biden himself draws on many decades of experience in Congress and even calls around to try to influence the representatives.
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