...
By Suzanne Blake
Reporter
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
As Republicans roll out their larger funding plan, Democrats have pushed back against the spending bill, sparking alarm over a potential government shutdown.
The longer it takes for a finance resolution to be passed, the stronger the likelihood of a shutdown, experts say. According to Polymarket, the chances of a shutdown by October 1 remain at 45 percent as of Tuesday afternoon.
Why It Matters
House Republicans have proposed legislation to continue funding the government through November 21, but Democrats may have enough numbers to block it from moving forward without significant changes.
Read More on U.S.
The current stopgap bill would extend funding levels for federal agencies for seven weeks and also add $58 million to increase security for federal and executive officials.
...
What To Know
Democrats are looking to halt the current funding bill due to concerns over expiring health care subsidies. Some are also hoping to roll back changes that Republicans previously passed restricting the Medicaid program.
While House Speaker Mike Johnson said there was "zero chance" the Republicans would go back on Medicaid's changes, he added that addressing the Affordable Care Act subsidies is a "a December policy issue, not a September funding issue."
But Senate Minority Leader Chuck Schumer warned that the GOP needs 60 votes in the Senate to get the bill passed, and Democrats are demanding changes.
"If Donald Trump says no negotiations at all, then it's Donald Trump's shutdown," Schumer said Tuesday.
In a joint statement, House Democratic Leader Hakeem Jeffries and Schumer said Republicans are refusing to stop Americans from facing double-digit hikes in health insurance premiums and that the GOP will steer the country into a shutdown if they refuse to work with Democrats.
"The House Republican-only spending bill fails to meet the needs of the American people and does nothing to stop the looming healthcare crisis," the lawmakers said in a statement.
Still, analysts say that the likelihood of a government shutdown is still low, being "politically untenable for both parties," Kevin Thompson, CEO of 9i Capital Group and host of the 9innings podcast, told Newsweek.
"Shutting down the government would stop the funding of SNAP, Veterans affairs, and other programs at this present time which would not be seen as favorable for officials given the current backdrop," Thompson added.
What People Are Saying
Johnson said Tuesday: "We need responsible options to keep the government open while all this work continues and Republicans are committed to making that happen."
President Donald Trump wrote on Truth Social: "In times like these, Republicans have to stick TOGETHER to fight back against the Radical Left Democrat demands, and vote 'YES!'"
Alex Beene, financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "As with most scenarios, the longer it takes for news of a resolution to continue government funding to emerge, the stronger the likelihood of a shutdown is. We've seen the same song-and-dance multiple times in recent years, as even when one party is primarily in control of Congress, that same party still lacks the number of votes needed for a major budget overhaul. The result is a resolution to simply continue the current budget, which will be the most likely outcome here. However, that doesn't mean we still couldn't have a shutdown, even if it is a short-term one."
What Happens Next
The GOP's majority is thin, meaning it can only lose two votes on the current bill. Republican Representatives Thomas Massie of Kentucky and Warren Davidson of Ohio have previously expressed disapproval over the Republican legislation.
The House is set to vote by Friday, after which point the bill would go to the Senate with a September 30 deadline.
"Funding for things such as Health and Human services, the FDA, and Veteran Affairs is crucial and any suspension of that could be detrimental for the people needing those services," Thompson said. "Longer term, this will basically kick the can down the road until November 21st as they will be at it again."
View 0 Comments
Submit Correction
View Editorial & AI Guidelines