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Home Canada

US House set for budget battle ahead of shutdown deadline

by wnndemo
February 8, 2018
in Canada, USA, World
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US House set for budget battle ahead of shutdown deadline
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The US Senate is set to pass a deal to avert another US government shutdown, but the bill is expected to face opposition in the lower chamber.

Senate leaders from both major parties announced a two-year budget deal a day before federal funding runs out.

The bill has angered Republican fiscal hawks who claim it would lead to a $1tn (£717bn) deficit while Democrats oppose it for not addressing immigration.

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But Republican House Speaker Paul Ryan has said he believes it will pass.

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“I think we will,” Mr Ryan told radio host Hugh Hewitt. “This is a bipartisan bill. It’s going to need bipartisan support. We are going to deliver our share of support.”

Congress has to reach a deal before government funding runs out at midnight on Thursday, when a one-month spending bill is set to expire.

Congressman Mark Meadows, chairman of the conservative House Freedom Caucus, has called the plan “eye-popping and eyebrow-raising”.

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“We took an official position last night to say we can’t support this,” he told CNN on Thursday.

Failure to reach a spending agreement led to a three-day government shutdown last month.

What’s in the bill?

White House legislative affairs director Marc Short said the package would increase spending by “just shy” of $300bn (£216bn).

The Washington Post puts the figure at half a trillion dollars.

The Senate bill, which has not yet been publicly unveiled, reportedly increases defence spending by $80bn in the first fiscal year and $85bn in the second.

Non-defence spending, such as a programme to provide health insurance for children, would reportedly increase by $63bn this year, and $68bn next year.

Why are some Democrats unhappy?

Mr Schumer argued the budget accord would “break the long cycle of spending crises”.

But a number of his fellow Democrats are upset that the bill does not address immigration.

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His House of Representatives equivalent, Nancy Pelosi, told the stories of immigrants in a speech lasting eight hours on Wednesday – setting what is thought to be a new record for the longest speech ever made in the House of Representatives.

The 77-year-old vowed to oppose any budget that does not include protections for so-called Dreamers, young immigrants who entered the US illegally as children.

Why are some Republicans opposed?

Conservative Republicans are up in arms about the bill’s ramifications for the US federal debt.

“It’s not like Republicans aren’t concerned about disaster relief, or Republicans aren’t concerned about funding community health centers or dealing with the opioid crisis,” said Republican Congressman Warren Davidson.

  • Does the US debt of $20tn matter?

“But when you add them all up, it adds to an awful lot of spending… It’s not compassionate to bankrupt America,” he said in an interview with National Public Radio.

Alabama Republican Mo Brooks dubbed the bill a “debt junkie’s dream” while Freedom Caucus leader Jim Jordan said the agreement was a “monstrosity”.

What’s the White House saying?

Deficits are already projected to climb because of the Trump administration’s $1.5tn tax cuts, which were approved by Congress in December.

White House spokeswoman Sarah Sanders praised the Senate bill, saying “we’re certainly happy with the way it’s moving”.

“The budget deal should be a budget deal,” she told a news conference, dismissing Democratic demands that it include a concession on immigration.

Officials at the White House say the deal would also increase the debt ceiling until March 2019.

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