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Politics Congress Can't Pass a Stimulus Deal as Budget Deadline, Government Shutdown Looms

01:05  05 august  2020
01:05  05 august  2020 Source:   newsweek.com

Access restricted near U.S. consulate in Chengdu as closure deadline looms

  Access restricted near U.S. consulate in Chengdu as closure deadline looms Access restricted near U.S. consulate in Chengdu as closure deadline loomsChina on Friday ordered the closure of the consulate after Washington had ordered the shutdown of China's consulate in Houston, in a dramatic escalation of a worsening in relations between the world's two largest economies.

Congress needs to pass spending legislation before Dec. 20 to avoid a government shutdown . It is unclear if President Donald Trump will support the Congressional negotiators reached a tentative deal in principle Thursday to fund the government as the deadline to avoid a shutdown draws nearer.

WASHINGTON — With a government shutdown looming at midnight Friday, the USA Act, a bipartisan funding bill that includes both a DACA With a little over 24 hours left before the deadline for a budget deal to keep the government running, Democrats and Republicans remain at an impasse.

The federal government runs out of money in 57 days.

a close up of a light pole in front of El Capitolio: The US Capitol is seen on the first work day for some federal workers following a 35-day partial government shutdown in Washington, DC, January 28, 2019. © SAUL LOEB/AFP/Getty The US Capitol is seen on the first work day for some federal workers following a 35-day partial government shutdown in Washington, DC, January 28, 2019.

And if the gridlock on Capitol Hill over another coronavirus stimulus package is any indication of lawmakers' future behavior, the country could be heading toward a shutdown unless yet another deal is struck.

Stimulus bills: Differences between the Democratic and Republican plans

  Stimulus bills: Differences between the Democratic and Republican plans Senate Republicans formally unveiled a roughly $1 trillion stimulus proposal this week, offering a starting point for negotiations with Democrats over what will likely become Congress's last major economic response to the pandemic. © Will Lanzoni/CNN President Donald Trump's name appears on a stimulus check on May 3, 2020. The $600 federal boost to unemployment benefits expires July 31, but millions of people are already receiving their last checks.Democrats, who control the House, are unified behind a far bigger and different proposal. They passed their own $3 trillion stimulus bill in May.

The US government suffered a brief shutdown – the second in less than a month – after a vote on the budget deal negotiated by Republicans and Democrats was delayed in the senate beyond the The House did pass a continuing resolution on Tuesday, funding the government through March 23.

The US government has begun a partial shutdown after the two houses of Congress failed to agree a new budget . The Republican-led House of Representatives insisted on delaying President Barack Obama's healthcare reform - dubbed Obamacare - as a condition for passing a bill.

"I don't know how much of what's going on now is a division based upon different points of view on principle and how much is due to the politics of an upcoming election," Senator Mitt Romney (R-Utah) said. "If the latter is playing a significant role—on either side—that will make the budget talks subject to the same problem."

Congress hasn't even started putting next year's budget together in a bipartisan fashion. In recent decades, it's become par for the course for Congress to be behind schedule on the appropriations process.

The Democratic-led House has passed 10 appropriations bills for the fiscal year that begins Oct. 1, while the GOP-controlled Senate has approved none. Senate Republicans want to first reach agreements with Democrats before starting the process in the upper chamber.

Dems reject short-term deal ahead of unemployment deadline

  Dems reject short-term deal ahead of unemployment deadline Treasury Secretary Steven Mnuchin and White House chief of staff Mark Meadows said on Thursday night that Democrats rejected a short-term deal as negotiators remain at loggerheads over the next coronavirus relief bill. "We made a proposal for a short-term deal. And as of now they've repeated they don't want to do that," Mnuchin told reporters after a nearly two-hour meeting with House Speaker Nancy Pelosi (D-Calif.), Senate Democratic Leader Charles Schumer (N.Y.) and Meadows. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.

Congress has also been haggling over spending caps for domestic programs and the military as they seek to finalize a budget for the remainder of 2018. Senate Majority Leader Mitch McConnell said this time he did not expect another threat of a government shutdown , which Trump critics blamed on

The deadline to pass a spending bill and avoid a shutdown is the end of the day Friday. Congress is likely to avert a shutdown because of the February deal reached by the two parties' leaderships, which increased the federal budget caps. The agreement set the levels of how much the government can

But that may take some time—Republicans emerged from a private lunch on Tuesday to say zero progress had been made on the stimulus deal over the past week in negotiations between White House officials, Democrats and GOP leaders. Democrats remained steadfast in their demands for a broader bill that includes a full extension of weekly federal unemployment benefits as Republicans and the White House push a trimmed down version about one-third the size.

Federal shutdowns sting. But during this recession, such a scenario could exacerbate the financial problems for some workers already impacted by the pandemic.

"By far, a much bigger effect depends on the outcome of the current negotiations for another relief bill," Michael Reich, an economics professor at the University of California at Berkeley who specializes in labor and political economics, told Newsweek. "It seems likely to fall short."

The $600 weekly unemployment benefit is formally expiring for millions of jobless Americans — and Congress is still fighting over what should replace it

  The $600 weekly unemployment benefit is formally expiring for millions of jobless Americans — and Congress is still fighting over what should replace it Democrats assailed the GOP for beginning to debate a replacement to the $600 weekly benefits at the 11th hour. Millions of unemployed people face income drops ranging from 50% to 75% until Congress enacts another supplemental payment to take its place.Visit Business Insider's homepage for more stories.The $600 federal supplement added to state unemployment checks formally expires on Friday — and Congress is still fiercely debating its replacement as unemployment remains high and jobs are scarce.

WASHINGTON — Congressional leaders and White House officials have steered the nation to the brink of a government shutdown that virtually While lawmakers seem eager to forge a deal before government funding expires on Friday, the Trump administration wants to use the deadline as a

House passes .4 trillion spending deal and sends it to Senate ahead of shutdown deadline . The legislation raises the tobacco purchase age, secures miner The House on Tuesday approved a .4 trillion spending package that would stave off a looming shutdown and fund the federal government

November's election, too, is likely to only hinder the path toward reaching an agreement on the discretionary spending, as Republicans fight to maintain their Senate majority amid troubling poll and fundraising numbers.

Senator Tim Kaine suggested lawmakers should use their November contests as a motivator to get the legislative priorities out of the way as quickly as possible.

"I could argue the reverse that, hey, why wouldn't everybody want to just do something so they could set that beside them and just go campaign full-time?" the Virginia Democrat, who is not up for election this year, told Newsweek.

"Sometimes, it can be it can be an incentive to try to get something done," he continued. "But I think my gut is telling me it's kind of leaning toward a CR."

The best legislators say they're looking for is to bypass the normal budget process and take alternative measures by approving a continuing resolution (CR), which would fund the government at its current level. Lawmakers would need to agree on how long the stopgap funding should last.

"If past is predicate, you imagine there's gonna be a CR," said Senator Chris Murphy (D-Conn.). "I'm willing to give it a try, but let's just be honest: you're gonna have a bunch of Senate Republicans fighting for their lives. I'm not sure how much interest there's going to be on their side to come to an omnibus budget agreement by September."

$1.5 trillion of earlier relief still hasn't been spent. Here's what's left

  $1.5 trillion of earlier relief still hasn't been spent. Here's what's left Congress authorized $3.7 trillion in spending earlier this year to help address the economic crisis caused by the coronavirus pandemic. © ALEX EDELMAN/AFP/AFP via Getty Images The US Capitol building is seen in Washington, DC on December 18, 2019 as the US House of Representatives debates two articles of impeachment against the US president. (Photo by Alex Edelman / AFP) (Photo by ALEX EDELMAN/AFP via Getty Images) But about $1.5 trillion remains to be spent, according to the Committee for a Responsible Federal Budget, a fiscal watchdog group tracking the spending.

Congress passed a short-term spending deal Thursday, sending to President Trump a bill to avert a partial government shutdown and setting up a heated budget fight later this month. Trump has indicated that he will sign the deal , preventing a government stoppage that had been set to take

US government officially shuts down as Congress fails to pass spending bill in time. Despite bipartisan support for a massive budget agreement, Congress failed to approve a funding plan before the midnight Thursday deadline .

Senate Appropriations Committee Chairman Richard Shelby (R-Ala.) contended that while he and his Democratic counterpart, Senator Patrick Leahy (D-Vt.), are ready to begin negotiations, Democratic leadership wants to load the budget up with partisan priorities. Democrats insist the ball is in Shelby's court. In June, Shelby pulled the appropriations markups process because Democrats intended to offer funding amendments related to coronavirus and police reform.

Shelby said that there's a "slim" chance his colleagues will pass a budget without needing a CR. "At the rate we're going, that's not gonna happen unless there's a 180-degree turn on the Democratic side. We're ready to go."

He suggested a CR could be tucked in a coronavirus stimulus bill. But Shelby and some of his Republican colleagues said Tuesday that those negotiations appeared to be at an "impasse."

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Negotiations on the US economic stimulus package initially failed .
© Andrew Harnik / AP / dpa US Democrat Nancy Pelosi talks about the negotiations on the economic stimulus package. The corona crisis is causing problems for the US economy, aid payments for millions of unemployed have expired and countless tenants are threatened with eviction. But the tough negotiations between Democrats, Republicans and the government over another large Corona stimulus package have failed for the time being. At first, no further round of talks was scheduled.

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