White House not optimistic about talks to avert looming gov. shutdown

By Al Mayadeen English
Source: Agencies
5 Jan 2024 22:13

Bloomberg reports that Biden's administration and Congress GOP are in talks to find middle ground before reaching the January 19 budgeting deadline.

A closure sign is posted on the National Park near the US Capitol in Washington DC, United States, in January 2018 (AFP)

Director of the Office of Management and Budget, Shalanda Young, expressed a lack of optimism regarding the potential government shutdown later this month, Bloomberg reported on Friday.

The administration of US President Joe Biden Biden and Republicans in Congress are currently engaged in talks to find a middle ground. The aim is to secure the latter's approval for Biden's request for an additional $106 billion, in exchange for implementing a stricter immigration policy and enhancing border security with Mexico.

A significant portion of the president's supplementary funding request, approximately $60 billion, is designated as aid for Ukraine, the news site noted.

In mid-December, US National Security Advisor Jake Sullivan warned that 2024 would pose significant challenges if the US Congress did not endorse new military aid for Ukraine.

The US Congress enacted in November a "laddered" or two-stage government financing legislation.

As per the bill, programs such as transport and energy will receive funding until January 19, while other sectors will receive funding by February 2. If parties failed to reach a consensus, a nationwide shutdown would follow on February 3.

For now, the likelihood of a government shutdown on January 20 remains high, especially since US House Speaker Mike Johnson has made a commitment not to pass more temporary funding bills.

This comes after CNN reported earlier today that US Senate Majority Leader Chuck Schumer and Johnson are close to reaching an agreement on the issue, adding that aides to Schumer and Johnson had been working on a deal for weeks, including discussing possible expenditure cutbacks.

Closing in on shutdowns then averting them in the last moment, either through a full agreement or partial, has been the trend in the US throughout 2023.

This leaves a window open for further temporary measures to prolong existing funding in case legislators are unable to negotiate a full-year budget agreement.