On the 11th, U.S. House of Representatives Speaker Johnson presented a bridge budget proposal that excludes the deep spending cuts sought by hard-line Republican conservatives. With the current bridging budget expiring, the risk of a federal government shutdown starting on the 18th has receded somewhat.
The fiscal year 2024 (October 2023-September 2024) spending bill has not yet been enacted, and both the Democratic and Republican parties have proposed new bridge budget proposals in both the House and Senate before the current bridge budget expires on the 17th. There is less time left to deliberate and pass the bill.
Speaker of the House Johnson
Photographer: Ting Shen/Bloomberg
But Johnson’s proposal did not include the immediate 30% spending cuts or changes to immigration policy sought by some conservative Republicans, improving prospects for reaching a deal with Democrats. New aid to Israel and Ukraine was also ruled out.
The deadline for new bridge funding is January 19th next year for the Departments of Veterans Affairs, Energy, Agriculture, Transportation, and Housing and Urban Development, and February 2nd for all others. We urge the Senate to consider and pass the bill quickly.
The House Administrative Committee will hold a public hearing on the 13th to consider the bridge budget, decide whether to vote on it in the full House, and set the procedures for doing so.
House Republican leaders are planning a plenary vote on the 14th, which could quickly end the honeymoon relationship between Johnson, who was elected speaker last month, and the party’s hard-liners. There is. Given the opposition within the party, it is almost certain that approval from Democratic members will be needed for the Speaker’s bridge budget bill to be passed by the House of Representatives.
On the other hand, if the opposition by conservative and hard-line Republicans continues, Chairman Johnson will be forced to withdraw the bridge budget proposal he presented on the 11th, raising the risk of a government shutdown once again.
White House Press Secretary Jean-Pierre said on the 11th.statementThe administration expressed its skepticism, saying, “This proposal would cause further confusion for the Republican Party and the risk of a government shutdown.” On the other hand, one Senate Democratic staff member said that Johnson’s proposal did not include significant spending cuts and that the bridging budget bill for defense spending was subject to a long deadline of February 2nd. He expressed his welcome.
On the 10th, rating agency Moody’s Investors Service downgraded the US credit rating outlook to “negative” due to risks to fiscal health and political divisions, and Congressional debate over budget issues. The response is being closely watched.
Analysts at Goldman Sachs Group Inc. estimated in September that a government shutdown would reduce U.S. quarterly growth by 0.2 points for each week it lasts.
Related article:
Original title:US Shutdown Risk Eased in Stopgap Plan Offered by Johnson (2)(excerpt)
(Updates with White House statement and reaction from Senate Democratic staff)
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2023-11-11 23:25:00
