Before 1 October, Republicans and Democrats in the House of Representatives must agree on how much money the various public agencies will be allowed to spend, and on what. But the scholars fight on the Republican side, and do not agree. Less than a day before the deadline expires, it appears that the United States will enter a new budget year without any budget. This will lead to a federal shutdown. The USA is the country that has given the most financial support to Ukraine since the war broke out. Conservative Republicans want to reduce support. Photo: Evan Vucci / AP Earlier this year, President Joe Biden met with the leader of the House of Representatives, Republican Kevin McCarthy. They discussed how the US can reduce its debt, in addition to keeping the economy going. They then put forward a proposal for a budget, and agreed to cut 1,500 billion dollars in the state budget over ten years. But the Republicans, who have a majority in the House of Representatives, disagree on this proposal. The conservative Republicans on the far right want to cut another 120 billion dollars. This is what the conservative Republicans want: An increase in border agents and a pay rise. They will address the construction of the wall between the United States and Mexico. Cut in aid to Ukraine. Restricting access to abortion. Prohibition against racial discrimination program at the Ministry of Defence. Restrictions on teaching about race. Source: Reuters. Dejected leaders – This is a completely new concept, with individuals who want to burn the whole city down. It doesn’t work, said a frustrated McCarthy last week, according to The Guardian. The leader of the Democrats in the House of Representatives, Hakeem Jeffries, was also upset: – The Republicans in the House of Representatives continue to be held captive by the most extreme elements, and that hurts the American people. Leader of the House of Representatives and Republican Kevin McCarthy is urgently asking his fellow Republicans on the far right to sign the budget proposal. Photo: CRAIG HUDSON / Reuters After the proposal has been approved by the Senate, it will be sent for a final approval by the president himself: – I am prepared to do my part, but the Republicans in the House of Representatives refuse. They refuse to stand up to the extremes in the party. So now, everyone in the United States must pay the price, said Joe Biden in a statement on X/Twitter. Tried to buy time McCarthy came up with a proposal for a temporary funding law that will keep the state apparatus open until 31 October, so that the House of Representatives can buy some time to come to an agreement. But the bill was blocked by Republicans on Friday, a day before the deadline. What will they agree on? 12 different budget decisions, collected in one state budget. They must agree on all of these in order for the funding of the state to be secure in the future. Why don’t they agree? A small group of Republicans in the House of Representatives believe the Biden administration is spending far too much money. They want to cut certain parts of the state budget. Among other things, they will not adopt a new financing package for arms deliveries to Ukraine. There is also strong dissatisfaction with the federal bureaucracy and spending in Washington in large parts of the Republican Party. A main project for Donald Trump is to fight against what he calls “the swamp”, which he and his supporters believe are overpaid ministry employees and other bureaucrats who stay too long in their jobs. Has this happened before? Yes. In ten years this has happened four times. Most of them must have lasted a day or two. But the last time it happened, between December 2018 and January 2019, the shutdown lasted for over a month. Who gets hit? It is estimated that around two million Americans could be affected by a shutdown: 800,000 civilian employees in the military could be laid off. Civil trials will be postponed. The state research agency will be hit. Museum and national parks. 10,000 low-income families may lose access to preschool. Control of hazardous waste and drinking water may be delayed. Federal loans to smaller businesses will stop. Payment of government support will be delayed, like disability claims. Large infrastructure projects can be put on hold. Source: Reuters How can it be solved? The politicians have two options. They can adopt a short-term funding package to keep the state open. In the Senate there is a majority for this, but they are stopped by the House of Representatives. Option number two is to negotiate the budget until they reach an agreement, or get help from the Democrats to get the necessary majority. But it is not possible without the grant to Ukraine being included. What could it mean for the American economy? If the shutdown is prolonged, it could be very damaging to the American economy. The economy is vulnerable, with high price rises and high interest rates right now. A shutdown will severely slow down economic activity in the state. Some payments from recipients of various welfare benefits will also stop, and furloughed federal employees may struggle to meet their financial obligations. What is the ultimate consequence, if they really don’t agree? It is very deadlocked and there is a great possibility that there will be a shutdown this time. The rebels among the Republicans are also threatening to impeach Kevin McCarthy, the leader of the House of Representatives and the third most powerful politician in the United States, after the president and vice president. All this now makes the United States an unstable country. This could affect the creditworthiness and confidence in the American economy. Hear also:
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The US can shut down – what does that mean? – news Urix – Foreign news and documentaries
