Summary: The US Senate has reached a bipartisan agreement on a stopgap measure to prevent a government shutdown. The deal, which would keep the government open for six weeks and provide $6 billion in short-term funding for Ukraine, may face challenges in the House of Representatives. Senate Minority Leader Mitch McConnell defended the short-term solution, emphasizing the negative consequences of a government shutdown.
US Senate announces stopgap measure to avert impending government shutdown
The US Senate has reached a bipartisan agreement on a stopgap measure to prevent an imminent government shutdown. The deal, which would keep the government open for six weeks and allocate $6 billion in short-term funding for Ukraine, faces potential challenges in the House of Representatives. Senate Minority Leader Mitch McConnell defended the short-term solution, highlighting the negative impact of a government shutdown on policy progress and millions of Americans.
Potential hurdles in the House of Representatives
The agreement reached in the US Senate may encounter significant obstacles in the House of Representatives, particularly from far-right Republicans. These lawmakers have expressed opposition to the proposed short-term funding for Ukraine and have vowed to reject the deal if it reaches the floor. Their resistance increases the uncertainty surrounding the passage of the stopgap measure and the potential for a government shutdown.
Consequences of a government shutdown
If the US government fails to pass budget legislation by the September 30 deadline, it will face a government shutdown. This would result in the suspension of non-essential functions, leaving federal services in limbo and millions of employees without pay. Additionally, a government shutdown could further damage the US’s credit rating, leading to higher interest rates. Credit ratings agencies have already expressed concerns, with one agency downgrading the US’s score and another warning of a potential downgrade if the budget standoff is not resolved.
