US Congress Moves to Prevent Partial Government Shutdown
In a critical move, top Republicans and Democrats in the US Congress introduced a stopgap funding measure to keep the federal government operational through March 14. This measure seeks to avert a partial government shutdown, which would commence on Saturday if no action is taken. The bill maintains the $6.2 trillion federal budget at current levels, covering essential services such as the military, air traffic control, and regulatory agencies, while also introducing $100.4 billion in emergency funding.
This emergency funding addresses recovery efforts for states affected by recent hurricanes, wildfires, and other disasters. Key allocations include $29 billion for FEMA's disaster relief fund, $21 billion for farmers impacted by flooding, and $10 billion in economic aid for agricultural losses. Additionally, $12 billion is earmarked for state and local community grants, while $8 billion will support highway and road disaster relief through the Transportation Department. Defense spending is also a priority, with $5.7 billion allocated for building Virginia-class submarines by General Dynamics Corp and Huntington Ingalls Industries.
The stopgap measure arises from Congress’s inability to pass 12 annual appropriations bills for the fiscal year that began on October 1. As a result, lawmakers are under pressure to prevent federal agencies from halting operations. House Speaker Mike Johnson, leading a narrow Republican majority, will likely require Democratic support to push the bill forward, given opposition from Republican hardliners. House Democrats have already signaled their readiness to collaborate to avoid a shutdown.
Rising federal debt, which has surpassed $36 trillion, adds urgency to the situation. Congress must soon address the debt ceiling, set to expire early next year. Failing to do so could destabilize bond markets, potentially triggering economic turmoil. Democrats have advocated for a longer-term funding solution, extending through the fiscal year ending September 30. However, Republicans prefer delaying a broader agreement until President-elect Donald Trump takes office in January, along with a Republican-controlled Congress.
President-elect Trump has proposed significant cuts to federal programs and staff. His newly created advisory committee, the Department of Government Efficiency, led by Elon Musk and Vivek Ramaswamy, aims to streamline operations, though both lack prior government experience. Their recommendations could significantly influence federal policies in the coming year.
The spending bill also includes a vital one-year extension for federal farm programs. Without this, prices for essential goods like milk and cheese could rise steeply after December 31, adding to economic challenges.
As Congress reviews the bill, initial votes are expected in the House, followed by Senate approval before Friday’s midnight deadline. Once passed, the bill will require President Biden's signature to become law. This critical measure reflects the ongoing political and economic complexities in maintaining government operations and addressing the nation’s rising debt and fiscal responsibilities.
Refrence From: www.ndtv.com