White House and Congress Hold Last-Minute Budget Talks to Avoid Government Shutdown
Following the Thanksgiving break, U.S. lawmakers have entered final-stage negotiations in Congress over the federal budget and other key issues. A deal must be reached by December 20 to ensure government funding and avoid a shutdown.
White House and Congress Hold Last-Minute Budget Talks to Avoid Government Shutdown
White House and Congress Hold Last-Minute Budget Talks to Avoid Government Shutdown
Following the Thanksgiving break, U.S. lawmakers have entered final-stage negotiations in Congress over the federal budget and other key issues. A deal must be reached by December 20 to ensure government funding and avoid a shutdown.
Government Funding Deadline:
In September, Congress passed a short-term funding measure, allowing the government to continue operating until December 20. However, due to the lack of a long-term solution, such temporary measures have become a recurring necessity. House Speaker Mike Johnson had previously announced his opposition to a combined funding package, preferring instead to fund the government through 12 individual bills.
Shifting Strategy Due to 2024 Elections:
However, with the 2024 elections approaching, the Republican Party has shifted its strategy. Republicans plan to push the deadline further into President-elect Donald Trump's early days in office. The success of Republicans in the upcoming election is influencing their approach to the budget and funding debates.
Big Fights Looming:
In the new year, Republicans are set to take control of the House, Senate, and White House, making budget negotiations even more contentious. They are focused on reducing spending and renewing the 2017 Trump tax cuts, which will add complexity to the upcoming discussions.
Disaster Relief Requests:
The Biden administration has requested $98 billion in disaster relief to address the aftermath of Hurricanes Milton and Helen in the Southeast. This request adds another layer to the ongoing budget discussions and remains a key part of the negotiations.
Speaker of the House Election:
In January, with the new Congress being sworn in, the election of a new House Speaker will take place. Mike Johnson, who has been nominated again for the role, may face challenges given the narrow majority Republicans hold in the House, making his confirmation uncertain.
Potential Impact on U.S. Economic Policy:
These ongoing budget talks have the potential to significantly impact the future economic policies of the United States and the activities of the Trump administration. With major changes expected in the upcoming year, these discussions will shape the nation’s fiscal trajectory and policy priorities moving forward.
