The threat of a federal government shutdown suddenly lifted as President Joe Biden signed a temporary funding bill to keep agencies open with little time to spare after Congress rushed to approve the bipartisan deal.
US Government Shutdown Averted Biden Signs 45 Day Funding Bill
Why In News
- The threat of a federal government shutdown suddenly lifted as President Joe Biden signed a temporary funding bill to keep agencies open with little time to spare after Congress rushed to approve the bipartisan deal.
- The package drops aid to Ukraine, a White House priority opposed by a growing number of GOP lawmakers, but increases federal disaster assistance by $16 billion, meeting Biden’s full request. The bill funds government until Nov 17.
- In the meantime, the country is staring down a possible government shutdown – the fourth in a decade – that would see hundreds of thousands of federal workers furloughed, among other wide-reaching effects.
What Is A Government Shutdown
- A government shutdown happens when Congress does not approve discretionary spending for the upcoming fiscal year.
- A government shutdown occurs when the legislative branch does not pass key bills which fund or authorize the operations of the executive branch, resulting in the cessation of some or all operations of a government
What Was The Issue
- Congress must pass 12 appropriation bills that set levels of funding for various federal agencies and programs.
- Such funding generally covers the operations of agencies, including salaries and benefits for federal employees, grants to state and local governments, and purchases from the private sector.
- Appropriations are made for almost all spending on U.S. defense as well as for programs to support education, improve America’s highways, preserve national parks, and much more.
- All 12 appropriation bills should be enacted before the start of a new fiscal year, which occurs on October 1.
- If the deadline is missed and a temporary provision to continue operations is not in place, the federal government will go into a full or partial shutdown.
- Congress is not anticipated to enact the 12 appropriations bills that finance government operations before the start of the next fiscal year, it looks like a government shutdown will occur on October 1, 2023.
Who Will Be Affected
- A shutdown affects nearly every corner of the US government, from the delivery of welfare cheques and publishing of national economic data to the operation of federal courts, museums and national parks.
- A shutdown would mean that most of the government’s 4 million employees would not get paid – whether they were working or not – and also would shutter a range of federal services, from National Parks to financial regulators.
- This time around, the ripple effect may extend even further, resulting in an even larger number of furloughed workers,”.
- This includes workers across federal government agencies, including the Department of Defense, as well as members of the US military. “All of this would prove disruptive to our national security,”
- A handful of federal programmes that millions of people across the US rely on every day could also be disrupted — from dwindling funds for food assistance to potential delays in customer service for recipients of Medicare and Social Security.
Stopgap Funding Bill
- The US Congress on Saturday approved a ‘stopgap funding bill’ in a rare show of cross-party unity to keep federal agencies running for another 45 days and avert a damaging government shutdown.
- Democrats overwhelmingly backed an eleventh-hour Republican measure to keep federal funding going for 45 days, albeit with a freeze on aid to Ukraine.
How Ukraine Got Affected
- Barely a week after President Volodymyr Zelensky was in Washington appealing for more funds, the compromise struck in Congress late Sunday dropped new funding for Ukraine amid opposition from hardline Republicans.
- The eleventh-hour bill that averted a federal government shutdown included no new funding for Ukraine, but President Joe Biden was quick to assure the Kyiv government that U.S. support remains steadfast.
- A Senate version of the measure would have provided more than $6 billion for Ukraine, but House Speaker Kevin McCarthy dropped the funding to placate some hard-line Republicans.
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