!-- Google tag (gtag.js) -->

US Federal Government on Verge of Shutdown as Republicans Oppose Biden’s $4.5tn Agenda

The United States federal government is on the verge of a shutdown as Republicans push back against President Joe Biden’s $4.5 trillion infrastructure bill and emergency spending package.

September 29, 2021
US Federal Government on Verge of Shutdown as Republicans Oppose Biden’s $4.5tn Agenda
US President Joe Biden walks from Marine One as he returns from Camp David to the White House, Sept. 26, 2021. 
SOURCE: JOSHUA ROBERTS/REUTERS

The United States (US) federal government has less than 72 hours to prevent a shutdown as funding expires on Friday and President Joe Biden struggles with “twin fiscal disasters.”

Biden and his Democrat-led administration have been majorly struggling to pass an emergency spending bill to alleviate the current crises as Republicans in the Senate blocked it consecutively on Monday and Tuesday. Additionally, the administration has been struggling to overturn a stalemate regarding a $1 trillion infrastructure bill and a $3.5 trillion emergency spending package that form the core of Biden’s legislative agenda.

If the emergency spending bill does not pass, the country is projected to hit its debt limit of $28.4 trillion by October 18. A Reuters article mentioned that Senate Republican leader Mitch McConnell insists Democrats “use a parliamentary manoeuvre to lift the debt limit without Republican votes temporarily, although Democrats note that about $5 trillion of the nation’s debt is the result of tax cuts and spending passed during Republican Donald Trump’s presidency.” 

In light of these events, Biden cancelled his planned Chicago trip on Tuesday to negotiate with the Republicans, and was reportedly “scrambling” to extend funding to avoid the two imminent deadlines. Biden held private meetings with lawmakers, including conservative Democratic Senators Kyrsten Sinema and Joe Manchin, who “baulked at the size of the spending packages under consideration,” and pushed for the passing of both bills. 

White House Press Secretary Jen Psaki informed reporters that the meeting with Sinema ended “without an apparent final agreement”, and the two Democrats “agreed that the US is at a pivotal moment.” Psaki said that Biden “asked his team to follow up later this afternoon with her [Sinema] directly to continue the conversation” but did not divulge the progress of the talks. 

As McConnell, backed by his fellow Republicans, voted against extending the funding, Senate Majority Leader Chuck Schumer said that “Democrats would take further action this week to extend funding before the new fiscal year begins on Friday.” Schumer also proposed “holding a vote to raise the debt limit that could pass with just the support of the chamber’s 48 Democrats and the two independents allied with them as long as Republicans agreed to allow the vote to occur.” “This isn’t your typical Washington fracas, and it shouldn’t be treated as such; it has far more severe consequences than the typical political catfight,” he told Reuters.

The infrastructure bill that will be voted on this Thursday forms a significant part of Biden’s Build Back Better plan. It comprises a $1 trillion package for physical infrastructure (roads, bridges and pipes) and a $3.5 trillion package encompassing social investments (childcare, healthcare and housing). 

Republicans have unflinchingly argued that this bill and Biden’s overarching plan is far too “ambitious,” and even some Democrats have insisted that it needs to be “trimmed.” 

Some Democrats solely support the infrastructure part of the bill, while others believe that only the social investment package needs to pass. Lawmakers, particularly on the party’s left, insisted that Congress must first pass the social spending bill. “We articulated this position more than three months ago, and today it is still unchanged,” Representative Pramila Jayapal, the leader of the Congressional Progressive Caucus, said in a statement. 

Similarly, Senate Budget Committee Chairman Bernie Sanders urged his House allies “to oppose the infrastructure bill” on Thursday, claiming that “its passage would end their leverage to move forward on the larger reconciliation package.”

Amid this baffling situation, House Speaker Nancy Pelosi appealed to colleagues by saying: “It would be a dereliction of duty for us to build the infrastructure of America without doing so in a manner that addresses the climate crisis significantly. To do so, we must pass the Build Back Better Act. As I write this to you, negotiations are being led by President Biden to advance his vision.” Regarding the government shutdown and Biden’s ongoing efforts, Pelosi reaffirmed that “we [the Democrats] have to make sure we keep the government open, and we will.” 

As Biden deliberates with various ranks of the Senate to evade a range of crises and finally pass the two proposals, it remains to be seen what the following days will yield for America at this pivotal juncture.