House Republicans are proceeding with a two-step plan to fund the government as the deadline nears on Friday. Speaker Mike Johnson announced the plan on a conference call with GOP members, stating that the first bill would extend funding until January 19, including military construction, Veterans Affairs, transportation, housing, and the Energy Department. The second bill would extend funding until February 2, covering the remaining government agencies. While the plan was supported by Republican hardliners, it was dismissed by Democratic senators. However, it may be difficult for Democrats to reject as it keeps funding at current levels.
The plan avoids deep spending cuts that Republican right-wingers had hoped for, making it contentious within the party. If the spending plan is not passed by Friday, many government operations will halt, and essential services will continue. Despite disagreement and division among Republicans regarding funding plans, it remains to be seen how many Democrats will ultimately support the plan, which could impact the GOP’s floor strategy. It’s evident that government shutdowns can have vast economic consequences including raising unemployment rates and lowering GDP growth, making the impasse particularly concerning.
Amid growing urgency in Congress, House Republicans have devised a two-step funding plan to avoid a government shutdown. However, the plan has sparked controversy within the party due to disagreements over the extent of spending cuts. While Republicans are grappling with the internal struggle, Democrats are debating whether to support the funding plan or not. The possibility of not passing a spending plan by Friday raises concerns about the economic impact of the impasse, given that government shutdowns can seriously affect unemployment rates, GDP growth, and borrowing costs. With Friday’s deadline looming, the fate of the funding plan will have broad implications, both within the government and for the nation’s economy.