Congress Returns with Deadline to Pass Spending Legislation and Avoid Shutdown

One sentence summary – Congress is under pressure to pass spending legislation to avoid a government shutdown, with the White House urging a short-term continuing resolution, while some House Republicans are linking funding to immigration and border wall legislation; financial analysts predict a potential shutdown, but its impact on markets is expected to be minimal, while FEMA is running low on funds for disaster relief, prompting the Biden administration to request separate funding, which may face opposition due to concerns about military aid for Ukraine.

At a glance

  • Congress must pass spending legislation to avoid a government shutdown by September 30.
  • The White House is urging Congress to pass a short-term continuing resolution for temporary funding.
  • House Republicans are linking funding to legislation on immigration and the border wall.
  • Financial analysts predict a potential government shutdown, but minimal impact on markets.
  • FEMA is facing a funding shortage for disaster relief, prompting a separate funding request from the Biden administration.

The details

Congress has returned from its summer vacation with a pressing deadline to pass spending legislation and avoid a government shutdown.

If funding legislation is not passed, the U.S. government will shut down on September 30.

The White House has urged Congress to pass a short-term measure known as a continuing resolution to prevent this.

This resolution would provide temporary funding at current levels.

Both the leaders of the House and Senate agree that a short-term measure is the best way to avoid a shutdown.

However, the continuing resolution only offers temporary funding.

This leaves the possibility of a potential shutdown if long-term spending bills are not passed.

Republican-led House Struggles with Funding Bills

So far, the Republican-led House has only managed to pass one of the twelve bills required to fund the government through 2024.

Complicating matters, some House Republicans are opposing the continuing resolution.

They are linking government funding to legislation on undocumented immigration and the border wall.

Representative Marjorie Taylor Greene has stated that she will not vote to fund the government unless the House opens an impeachment inquiry into President Joe Biden.

Bank of America analysts believe there is a 50% chance of a shutdown due to conservative Republicans’ conditions on funding legislation.

However, UBS analysts suggest that a shutdown is unlikely to have a significant impact on financial markets.

FEMA Faces Funding Shortage

This funding battle comes at a time when the Federal Emergency Management Agency (FEMA) is facing a shortage of money to respond to natural disasters.

FEMA anticipates depleting its remaining $3.4 billion in disaster relief funds and running a deficit by mid-September if additional funding is not allocated.

To address this, the Biden administration has called on Congress to pass separate funding of $16 billion to bolster the disaster fund.

However, the Biden administration’s request for disaster relief funding may face opposition.

This opposition is due to Republican concerns about military aid for Ukraine.

Florida Senators Marco Rubio and Rick Scott have advocated for separate consideration of disaster funding and Ukraine aid.

In fact, Scott plans to introduce a bill to replenish FEMA’s disaster fund with $12.5 billion.

In summary, Congress faces a deadline to pass spending legislation and avert a government shutdown.

The White House is pushing for a short-term continuing resolution.

Some House Republicans are linking funding to legislation on immigration and the border wall.

Financial analysts predict a potential shutdown.

Its impact on markets is expected to be minimal.

Meanwhile, FEMA is running low on funds for disaster relief.

This has prompted the Biden administration to request separate funding.

However, opposition may arise due to concerns about military aid for Ukraine.

Senators Rubio and Scott have advocated for this and plan to introduce a bill replenishing FEMA’s disaster fund.

Article X-ray

A group of people holding hands, symbolizing unity and cooperation, against a backdrop of a ticking clock.

This section links each of the article’s facts back to its original source.

If you have any suspicions that false information is present in the article, you can use this section to investigate where it came from.

cnbc.com
– Congress returned from summer vacation with a deadline to pass spending legislation and avoid a government shutdown.
The U.S. government will shut down on Sept. 30 if funding legislation is not passed.
The White House has asked Congress to pass a short-term measure called a continuing resolution to fund the government at current levels and avoid a shutdown.
– Both the leaders of the House and Senate agree that a short-term measure is the best way to avoid a shutdown.
The continuing resolution would only provide temporary funding and could lead to a potential shutdown if long-term spending bills are not passed.
The Republican-led House has only passed one of the twelve bills needed to fund the government through 2024.
– Some House Republicans are pushing back against a continuing resolution, tying government funding to legislation on undocumented immigration and the border wall.
– Rep. Marjorie Taylor Greene has stated that she will not vote to fund the government unless the House opens an impeachment inquiry into President Joe Biden.
– Bank of America analysts believe there is a 50% chance of a shutdown due to conservative Republicans’ conditions on funding legislation.
– A shutdown is unlikely to have a significant impact on financial markets, according to UBS analysts.
The battle over funding comes as FEMA is running low on money to respond to natural disasters.
– FEMA expects to use up its remaining $3.4 billion in disaster relief funds and run a deficit by mid-September without additional funding.
The Biden administration has called on Congress to pass separate funding of $16 billion to bolster the disaster fund.
The Biden administration’s request for disaster relief funding could face opposition due to Republican concerns about military aid for Ukraine.
– Florida Senators Marco Rubio and Rick Scott have called for separate consideration of disaster funding and Ukraine aid.
– Scott plans to introduce a bill to replenish FEMA’s disaster fund with $12.5 billion.

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