US House Republicans Plan Shutdown-Averting Measure Amid Credit Warning – Republicans in the U.S. House of Representatives plan to unveil a temporary measure to prevent a partial government shutdown on Saturday, following the Moody’s credit agency’s decision to downgrade the government’s credit ratings to “negative.” According to a reliable source speaking anonymously, details about the release of the continuing resolution (CR) are not finalized, and the form of the measure remains uncertain.
U.S. House Speaker Mike Johnson has engaged in extensive discussions with members of his narrow 221-212 Republican majority regarding various options for a continuing resolution (CR). Both the Republican-controlled House and the Democratic-led Senate need to reach consensus on a legislative solution that President Joe Biden can approve before the current funding expires on November 17.
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Moody’s pointed to congressional political polarization as a contributing factor in its decision to reduce the credit outlook, expressing concern that Washington might struggle to reach consensus on addressing the escalating deficits. With a $1.7 trillion deficit last year, the U.S. faces the challenge of servicing its debt amid increasing interest rates.
Notably, Congress recently teetered on the edge of defaulting on the nation’s over $31 trillion debt, a scenario that could have had significant repercussions on global financial markets. Approaching a potential shutdown, some Republicans advocate for a “clean” continuing resolution (CR) extending to mid-January, free of spending cuts or conservative policy riders opposed by Democrats.
However, staunch conservatives persist in pushing for a CR incorporating spending cuts, policies like enhanced U.S.-Mexico border security, and an unconventional structure with staggered deadlines for various federal budget segments. Concerns are raised that a prolonged partisan dispute over the stopgap measure could hinder Congress from preventing a shutdown. While House Republicans deliberate, Senate Majority Leader Chuck Schumer initiates procedural steps toward advancing his own stopgap measure.