Republicans in the US House of Representatives plan to unveil a stopgap bill to prevent a partial government shutdown on Saturday, the same day that Moody’s downgraded the nation’s credit ratings to “negative.”
The publication schedule for the continuing resolution, or “CR,” was still being worked out, according to an informed source who requested to remain anonymous. Furthermore, it was unclear how the measure would be implemented.
Speaker of the House of Representatives Mike Johnson has been debating several CR possibilities for days with members of his narrow 221-212 Republican majority. Before the current financing expires on November 17, the Democratic-led Senate and the Republican-controlled House must come to an agreement on a bill that President Joe Biden may sign into law.
In deciding to downgrade the credit outlook, Moody’s pointed to the political division in Congress, stating that Washington might not be able to come to a consensus to reduce its escalating deficits.
The cost of maintaining the nation’s debt will increase due to rising interest rates, which will result in the U.S. recording its highest deficit since the worst of the COVID-19 epidemic last year, at $1.7 trillion.
A few months ago, Congress threatened to force the United States to default on its nearly $31 trillion debt, a move that would have sent shockwaves through the global financial system.
A “clean” continuing resolution (CR) with no expenditure cutbacks that would extend until mid-January has been proposed by some Republicans in light of the impending shutdown.
However, extreme conservatives are still pushing for a bill that would slash spending while enacting measures like increased border security and an unconventional structure with varying deadlines for various parts of the federal budget.
Numerous legislators caution that Congress may not be able to escape a shutdown if there is a protracted party battle over a temporary solution.
Senate Majority Leader Chuck Schumer moved towards advancing his own temporary bill this week, taking the first procedural step in the process while House Republicans discussed their choices.