U.S. President Joe Biden is urging Republicans in Congress to act swiftly to avert a potential government shutdown and its subsequent impacts on numerous sectors.
What Happened: President Biden took to X, formerly Twitter, on Monday, expressing concerns about the possible effects of a government shutdown. These could span from food safety, cancer research, to Head Start programs for children. He stated that funding the government is a primary responsibility of Congress and called on Republicans to fulfill the role they were elected to perform.
Earlier, during the Congressional Black Caucus (CBC) dinner, Biden had issued a similar warning, cautioning that if Republicans in Congress fail to act, “America could be forced to pay the price.”
Why It Matters: The federal government faces a potential shutdown if spending bills are not passed by the Sep. 30 deadline. This situation has ignited division among House Republicans, with threats of voting to remove House Speaker Kevin McCarthy (R-Calif.) from his leadership position. In the past five decades, the federal government has shut down 21 times.
As per Moody's warning, a potential shutdown could expose the vulnerability of U.S. institutional and governance strength when compared to other top-rated governments.
There have been accusations that former President Donald Trump is pushing Republicans to leverage the impending government funding deadline to withhold funds from the Justice Department (DOJ).
This political stalemate could have serious implications, affecting millions of federal employees and leading to the suspension of non-essential federal functions, such as social security and SNAP benefits.
Photo by Alexandros Michailidis on Shutterstock
Read Next: Elon Musk’s vision and ventures are propelling Austin, Texas into an extraordinary opportunity for investors. Here's how to invest before he floods it with new tech workers.
Engineered by Benzinga Neuro, Edited by Shivdeep Dhaliwal
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.