Budget: Shutdown averted in the USA

Budget: Shutdown averted in the USA

The political wrangling over the budget repeats itself every year. President Biden has now passed an interim budget – but the dispute is likely to continue.

US President Joe Biden has signed the interim budget law negotiated in Congress, thus averting the impending standstill of government business for the time being. The White House announced this. Parliament therefore has until the beginning of next year to discuss a budget – but financial support for Ukraine and Israel is still pending.

On Tuesday, the House of Representatives initially voted for the interim budget. The newly elected Republican majority leader, Mike Johnson, introduced the bill. Approval in the Senate followed on Wednesday. Without an agreement, employees in parts of the public administration would no longer have received their salaries from Saturday.

Some points excluded

The budget excludes the billions in support for Israel and Ukraine requested by Biden, as well as new money for the US border protection with Mexico. These points must later be decided separately, just like a regular budget with a longer term. Republicans in particular are increasingly skeptical or rejecting support for Ukraine, which is being attacked by Russia.

The law now signed provides that around a fifth of the money for government operations and federal agencies will be financed until January 19th, including money for the military and veterans, agriculture and transport. The other four-fifths, such as the State Department, Trade, Labor and Health, will be funded through February 2nd.

The political wrangling over the budget repeats itself every year – usually Congress makes do with passing an interim budget and then fights again a few months later over the financing of government operations.

Source: Stern

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