A US government shutdown looms as the House of Representatives rejects a bipartisan spending agreement, triggering a potential crisis that could impact essential services and thousands of public employees.
US Government Shutdown Looms as House Rejects Trump-Backed Spending Deal
A US government shutdown is fast approaching after the House of Representatives voted against a Donald Trump-backed spending bill. Dozens of Republicans defied the president-elect by joining Democrats to reject a revised funding measure.
Government Shutdowns in the US: A Frequent Occurrence
Unlike in much of the rest of the world, government shutdowns in the US happen relatively often due to a 1980 act which basically ruled that without a budget there can be no spending. This means that if the US Congress – made up of the House of Representatives and the Senate – does not approve a budget, there is no money for the federal government and non-essential services soon begin shutting down and many public employees stop getting paid.
Essential Services Will Continue
Services classed as essential – mostly related to public safety – continue to operate, and those workers are required to show up without pay. This usually includes border protection, hospital care, air traffic control, law enforcement, and power grid maintenance. However, services deemed to be non-essential, such as the food assistance programme, federally funded pre-school, the issuing of student loans and food inspections, and the opening of national parks, will all be hit.
The Role of Elon Musk in the Shutdown Drama
Tech billionaire Elon Musk has been a key player in the shutdown drama. He lobbied heavily against the existing deal with dozens of posts on X – the social media platform he owns. He called it “criminal” and often referenced false statements about the bill in his posts, stating that any lawmaker who votes for this outrageous spending bill deserves to be voted out in 2 years.
The Latest Spending Plan Fails
The latest spending plan was the second in as many days which failed to reach the two-thirds majority needed to pass the lower chamber of Congress, with 38 Republicans voting against the bill on Thursday night. This was in defiance of Trump who the day before had thwarted a previous cross-party funding deal that the Republican House leadership had struck with Democrats.
A Partisan Blame Game
The current deadlock can be traced back to September, when another budget deadline loomed. The situation also poses a challenge for Johnson, as the House is set to vote in just 15 days on who will serve as House Speaker for the next Congress. What previously looked like a secure position for Johnson is now seeming less of a sure thing.
The Economic Impact of Government Shutdowns
The last government shutdown ran from 21 December 2018 to 25 January 2019 and was the longest on record. The Congressional Budget Office (CBO) estimated that it reduced economic output, externally by about $11bn, including $3bn that it never regained.
