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US government shutdown looms as bipartisan rifts grow, again

  • By Al Mayadeen English
  • Source: Agencies
  • 12 Nov 2023 08:49
  • 1 Shares
2 Min Read

The United States approaches another government shutdown deadline with no sign of a bipartisan agreement.

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  • US government shutdown looms as bipartisan rifts grow, again
    A pedestrian traffic stop sign with the Capitol in the background as seen in Washington in 2013 (AP)

The United States government is closing in on yet another financial crisis as Republicans and Democrats continue to play the blame game on federal funding with no solution in sight.

Newly elected House Speaker Mike Johnson proposed a bill on Saturday that constitutes a two-stage financing plan to prevent a November 17 government shutdown.

Initially, the shutdown was set to take place at midnight on September 30, but it was averted at the last moment after a bipartisan agreement was reached to allocate a 45-day financing budget to federal sectors, which expires on November 17.

Read more: Fed says will maintain interest rate at current value amid inflation

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. Meanwhile, assistance to "Israel" and Ukraine was not included.

Commenting on the proposed plan, White House Press Secretary Karine Jean-Pierre accused Republicans of wasting critical time with a bill that will lead to more chaos.

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"This proposal is just a recipe for more Republican chaos and more shutdowns—full stop … House Republicans are wasting precious time with an unserious proposal that has been panned by members of both parties," Jean-Pierre said in a statement.

Jean-Pierre called on Republicans to set aside political disputes and work "in a bipartisan way" to avert a government shutdown.

Read more: US debt to grow $5bln per day for next ten years: Bank of America

The voting on the bill is scheduled to take place on Tuesday, Fox News reported.

Johnson's funding bill came just one day after Moody's Investors Service lowered its rating outlook for the US government from stable to negative.

"Continued political polarization within US Congress raises the risk that successive governments will not be able to reach consensus on a fiscal plan to slow the decline in debt affordability," the rating agency said.

Amid high-interest rates, ineffective fiscal policy measures, and stagnant revenues, the "US' fiscal deficits will remain very large, significantly weakening debt affordability."

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  • Congress
  • Moody's
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  • Mike Johnson
  • Karine Jean-Pierre
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