The U.S. Congress, with substantial Democratic support, passed a stopgap funding bill late on Saturday. This action came after Republican House Speaker Kevin McCarthy withdrew from a previous demand by his party’s hardliners for a partisan bill. The Democratic-majority Senate showed unity, voting 88-9 to pass the measure, effectively avoiding the federal government’s fourth partial shutdown in a decade. Consequently, the bill was sent to President Joe Biden, who promptly signed it into law.

However, the journey to this resolution wasn’t smooth since McCarthy had to abandon the hardliners in his party, who insisted that any bill should pass the House with only Republican votes. This shift could potentially lead to attempts by his far-right members to remove him from his leadership role. The House, in response, voted 335-91 to fund the government through Nov. 17, witnessing more Democrats than Republicans in support.

Essential Services Spared in Government Shutdown Plans

Anticipating a possible shutdown, Federal agencies had already formulated detailed plans outlining which services would continue and which would halt. Essential services such as airport screening and border patrols were to continue, while others, including scientific research and nutrition aid to 7 million poor mothers, were to cease.

The potential shutdown would have meant that a majority of the government’s 4 million employees would not receive pay, impacting both working and non-working individuals and shutting down various federal services, ranging from National Parks to financial regulators.

Significantly, avoiding a shutdown means that the American people and federal agencies can breathe a sigh of relief. Senate Majority Leader Chuck Schumer expressed his relief post-vote, emphasizing that bipartisanship was the only solution for avoiding a shutdown and commending Speaker McCarthy for heeding their message.

Yellen Warns of Shutdown Economic Strain

Previously, Treasury Secretary Janet Yellen voiced significant concerns regarding the detrimental effects a government shutdown could have on the U.S. economy. She described such a scenario as “reckless,” highlighting the direct damage and the mental strain political stagnation could impose on businesses and consumers. Yellen pointed out that this could diminish trust in the economic framework, possibly resulting in decreased expenditure and investment, negatively impacting economic development and equilibrium.

Also Read: US Revised GDP At 2.1%, Will It Spark Market Gains?

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Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

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