In June, President Joe Biden signed into law an increase in US borrowing authority that he brokered with McCarthy, which also came with around $US1.5 trillion in spending cuts over 10 years.
Ultra-right House Republicans want to go further with around $US120 billion in additional cuts just for the new fiscal year, which could hit programs ranging from education and environmental protection to Internal Revenue Service enforcement and medical research.
Similarly, Republican Representative Tim Burchett told CNN’s State of the Union that he has never voted for a temporary funding bill and won’t this time around.
He warned that if McCarthy allows legislation to pass the House with Democratic support, “I would look strongly at” a move to strip McCarthy of his speakership.
“This dysfunctional Washington cannot continue,” Burchett said, referring to the way Congress handles the federal budget, which is on a path to a $US1.5 trillion deficit for the fiscal year that ends on Saturday.
Transportation Secretary Pete Buttigieg warned in an ABC interview that a government shutdown will require his agency to immediately suspend air traffic controller training courses at a time when air travel is “getting back to normal” following a high volume of flight delays and disruptions last year.
Aides to McCarthy were not immediately available for comment on whether negotiations over a CR were continuing on Sunday.
But he has been pushing for a 30-day bill to keep federal offices open, coupled with a strict border security plan that would basically suspend most immigration into the United States at a time of record numbers of people seeking asylum on the border with Mexico.
Even some of the Senate’s most conservative Republicans on Sunday appealed to House counterparts to stop blocking a stop-gap bill.
“We would like for the House to begin that process of sending us a CR to keep the government open and functioning,” Senator Marsha Blackburn told Fox Business News.
Appealing to those conservatives’ eagerness for conducting investigations into Biden and some other top administration officials, Blackburn added: “If you shut down the government you can’t continue that.”
Moodys analysts led by William Foster wrote in a report Monday.
“While government debt service payments would not be impacted and a short-lived shutdown would be unlikely to disrupt the economy, it would underscore the weakness of US institutional and governance strength relative to other Aaa-rated sovereigns that we have highlighted in recent years,”
In the wake of the Federal debt ceiling “brinkmanship” earlier this year, “a government shutdown would demonstrate the significant constraints that intensifying political polarisation continue to put on US fiscal policymaking during a period of declining fiscal strength, driven by persistent fiscal deficits and deteriorating debt affordability,” Moody’s added.
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