US Shutdown D-5... Senate Proposes 6-Week Short-Term Budget Bill

Likely Difficult to Pass the House

President Joe Biden of the United States. [Image source=AP Yonhap News]

With the deadline for a U.S. federal government 'shutdown' just five days away, a six-week short-term budget bill has been drafted. However, it seems unlikely to pass the House of Representatives.

According to the Washington Post (WP) on the 26th (local time), the U.S. Senate announced a six-week short-term budget bill to avoid a shutdown. This bill includes funding for support of the Ukraine war and domestic livelihood assistance.

Senate Majority Leader Chuck Schumer stated, "The short-term budget bill will maintain our commitment to Ukraine's security and humanitarian needs." The bill was prepared to immediately prevent a federal government shutdown and to give Congress time to negotiate.

Foreign media reported that to prevent a shutdown, the budget must be passed before October 1, when the 2024 fiscal year begins. With only five days left before a potential shutdown, the six-week short-term budget bill was introduced to buy time.

However, the likelihood of this bill passing the House is low. House Speaker Kevin McCarthy (Republican) indicated opposition to the short-term budget bill on the same day, saying, "Funding for Ukraine should not be included in the temporary budget but handled through separate legislation."

Hardline Republicans continue to pressure that they will not support passing the next fiscal year's budget unless significant cuts are made. Moreover, the Republicans currently hold a slim majority in the House, and losing even one more vote beyond four could prevent them from passing the bill.

Currently, the U.S. Congress has not passed any of the 12 appropriations bills through both the House and Senate. Jim Jordan (Ohio), the founding chairman of the hardline conservative Republican group 'Freedom Caucus,' said in a Fox News interview on the 24th, "I don't think we can pass all 12, but I think we can pass four," adding, "Those cover most of the total budget expenditures."

If the federal government enters a shutdown, temporary layoffs will begin for federal employees except for essential personnel in defense, health, and transportation, and all public programs except core services will be suspended. If a shutdown occurs, it will be the first work stoppage in four years since the Trump administration in 2019.

Earlier, Moody's, one of the world's top three credit rating agencies, warned that a shutdown could negatively impact the United States' national credit rating.