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How the US avoided a shutdown with a $1.6-trillion deal in nick of time


Top Democrats and Republicans in the US Congress finally struck a deal, narrowly avoiding a crippling government shutdown just weeks into the New Year. The $1.59-trillion spending agreement marks a fragile truce in the ongoing budget battle, but uncertainty continues to loom as the details of the bill are hammered out.

A shutdown would have got millions of workers furloughed and hit vital federal services.

The CNN says that it is a rare event that Congress is confronting not one but two government shutdown deadlines early this year – on January 19 and February 2.

For months, Republicans and Democrats were locked in a bitter stand-off over how much money to allocate to various government agencies.

The divide seemed impossible, with each side clinging to their priorities: Republicans pushing for increased defence spending and to save money, while Democrats seeking more for schools and healthcare. But as the clock ticked closer to the January 19 deadline, the spectre of a shutdown – with its potential to furlough millions of federal employees and disrupt vital services – finally spurred them into action.

DIFFICULT ROAD AHEAD ON SPENDING BILLS

But how was the deal reached? No one got everything they wanted.

Democrats got a bit more money for healthcare and helping veterans, while Republicans got more for the military and were able to cut back on some unused Covid money. But some lawmakers on both sides still aren’t happy with the compromises.

The deal may have saved the day from a shutdown, but it’s not quite happily ever after. Think of it like climbing a mountain: they have reached the first peak, but the toughest part is still ahead. Each government department gets its own little spending bill, and there are 12 of them – like 12 more mountains to climb!

Republicans and Democrats still disagree on how much to give each one, and some Republicans are already grumbling they won’t even vote for the bills unless Democrats help out with border security.

This narrow escape from a shutdown serves as a stark reminder of the fragility of the government’s financial stability. It emphasises the need for bipartisanship and a willingness to compromise, not just in eleventh-hour desperation, but throughout the legislative process.

WHAT IS A GOVERNMENT SHUTDOWN?

A government shutdown is like taking a big pause to figure things out, but for the whole country.

Imagine it like this: all the non-essential parts of the government, like national parks, museums, and even some office workers, go on a temporary break. It’s not a vacation, though!

It happens when lawmakers can’t agree on how to spend money, so they put everything on hold until they reach a deal.

While some important services like hospitals and the military keep running, it’s kind of like hitting the brakes on everyday government business.

WHY DO GOVERNMENT SHUTDOWNS HAPPEN?

Government shutdowns typically occur when the government’s spending authority expires, and Congress fails to pass a budget or a temporary funding measure. This can happen due to disagreements between political parties or within Congress over budget priorities, policy issues, or other legislative matters.

When a shutdown takes place, federal agencies are unable to operate because they lack the necessary funds to pay for their functions, leading to the furlough of non-essential employees and the suspension of many government services.

HOW SHUTDOWNS IMPACT CIVILIAN LIVES

The consequences of a government shutdown on the day-to-day life of civilians can be significant.

Services such as national parks, passport processing, and some regulatory activities may be disrupted. Federal employees deemed non-essential may be furloughed, leading to financial hardships for them and their families.

Additionally, delays in government functions, such as processing of tax returns or approval of certain permits, can impact individuals and businesses. The uncertainty and disruptions caused by government shutdowns can erode public confidence in the functioning of the government and have broader economic implications as well.

Published By:

Girish Kumar Anshul

Published On:

Jan 8, 2024



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