US lawmakers warned that a shutdown of the government is becoming more likely as hopes for a last-ditch compromise to end a budgetary standoff in the largest economy in the world wane.
Both Democrats and Republicans stated on Sunday that time is running out to reach a deal by October 1, the date when funding for federal operations will end.
A shutdown could force thousands of federal employees to stay at home and paralyze vast areas of the US Government, which would harm businesses and households, as well as damage the American Economy.
The latest budget crisis in Washington occurs just a few short months after Congress and White House narrowly avoided a more destructive default of US debt. The bipartisan agreement reached between US president Joe Biden, and Kevin McCarthy, Republican House Speaker, at the time did not go down well with hardline Republicans or allies of the former president Donald Trump. They are now blocking any further fiscal compromise.
McCarthy floated in recent days a 45-day government funding extension to allow more time to reach an agreement about the spending details for the next fiscal. However, McCarthy is meeting stiff opposition to this plan.
Tony Gonzales, Texas Republican, said to CBS on Sunday: “I do not want a government shutdown. But there is no doubt that we are headed towards one. Everyone should be prepared for it.”
Maxine Waters of California, who is the top Democrat on the House Financial Services Committee, said that a shutdown would soon be upon us. “The Republican Party has a complete mess.” Chaos reigns. The speaker is on the floor begging for forgiveness, but. . . She told MSNBC that he had no control.
Biden warned on Saturday night that a government shutdown could affect military pay, food security, early childhood education programs, and cancer research.
“Funding government is one the most fundamental responsibilities of Congress. It’s high time Republicans started doing what America elected them for. Biden told a dinner hosted the Congressional Black Caucus, “Let’s get it done.”
Democrats have historically benefited from budget and fiscal crises caused by Republican intransigence. The standoff comes at a moment when Biden’s reelection campaign is being hampered by his low approval ratings. Pete Buttigieg (transport secretary) suggested that a prolonged shutdown could have political repercussions for the White House.
Buttigieg said to NBC that “the most frustrating thing is, of course, that the president and the administration have a duty to ensure that no matter what Congress decides, that the country continues on its path of success”.
There is still the possibility of a resolution to the crisis, either by an agreement between the centrist members of both parties of the House or by a deal that the Senate leaders would make to put pressure on the lower house to accept a solution.