He United States Congress cannot reach an agreement to launch a government financing law and could have a budget paralysis If you do not resolve this conflict before 11:59 p.m. on Saturday.
This Friday, a group of 21 conservative Republican legislators blocked the short-term bill presented by the Speaker of the House of Representatives, Kevin McCarthyfrom his same party, which anticipated cuts of almost 30%because they considered it insufficient.
Despite the rejection of the group aligned with former President Donald Trump, McCarthy assured: “It’s not the end yet, I have other ideas.” His initiative, which provided for a short term solution until they reached a new definitive agreement, was also rejected by Democratic legislators.
For his part, the Senatewith a Democratic majority, is working on a bipartisan bill that would finance the Government at current levels until November 17 and would provide approximately $6 billion in aid for Ukraine and others $6 billion for aid in case of disaster.
However, this proposal does not have the approval of House Republicanswhere they have a majority, they must approve it for it to become law.
United States: the White House ruled on possible budget paralysis
The director of the Office of the Budget (OMB) of the White House, Shalanda Youngspoke at a press conference and referred to the possibility of reaching an agreement between Democrats and Republicans to enact the budget law: “There is still a chance“, he considered and added: “I am optimistic. “We still have a day and a half to find what is needed to approve the agreement.”
White House Press Secretary Karine Jean-Pierre warned that the consequences of a closure would be “really harsh”. “What they are doing is incredibly irresponsible and reckless“He said of the House Republicans. He said they were putting the economy and national security at risk.
For his part, the president Joe Biden He emphasized that the suspension of Government activities at midnight on Saturday poses a danger to the performance of the US military.
If the House of Representatives “does not fulfill its most basic function and does not finance the Government for tomorrow, we will have failed all our troops“said the president, CNN reported.
The Chief of Staff of Biden, Jeff Zientstold NPR that the White House was preparing for a last-minute agreement on Saturday, and assured that The president had not planned to meet personally with McCarthy.
“There is no need for a meeting right now. The meeting that has to take place is in the House of Representatives, where House Republicans meet and fund the government“he assured.
Budget constraint: what it is and what consequences it can have
Every year, The United States Congress enacts an annual budget law that allows the financing of the Government. However, legislators have still not been able to reach an agreement and the budget that currently in force expires on Sunday, October 1Therefore, if they do not launch a new law before that moment, The Government will have to face a closure, or “shutdown”which implies that sectors of the administration stop functioning due to lack of funds.
There is no provision for how long an interruption of this type may last, which could have a negative impact on the US economyas economists warned.
Unless there is a last-minute agreement, a scenario that for now seems impossible, the world’s largest economy will operate half-heartedly starting Monday: 1.5 million civil servants will be technically unemployedhe air traffic will be affected and the national parks will close.
Budget paralysis will not only be a problem for USAis also a direct threat to Ukraine. The White House wants the budget law includes $24 billion in military aid and humanitarian for kyiv.
Source: Ambito
