U.S. Government Shutdown Looms: Centrist Democrats & Kevin Mccarthy's Allies Rush To Negotiate A Deal

The clock is ticking as centrist Democrats and allies of Speaker Kevin McCarthy (R-Calif.) scramble to strike a last-minute deal to avert a potential government shutdown, as per a report by Politico.

What Happened: The hush-hush discussions, primarily involving the bipartisan Problem Solvers Caucus, the Republican Governance Group, or the centrist New Democrat Coalition, are due to fears of reprisal from a few conservative holdouts.

The end game is to create a bill that can garner bipartisan approval to prevent a government shutdown before the Sept. 30 deadline. Two key strategies are being considered: a procedural move to expedite a vote on a compromise spending plan or a bill that could appeal to a broad base, which would help McCarthy fend off right-wing challenges.

The potential bill may feature a bipartisan short-term patch with disaster funds, Ukraine aid, and minor border policies. However, any plan will face significant roadblocks before reaching the voting stage. Part of the talks also revolve around protecting Speaker McCarthy’s position, in light of possible attempts to remove his speakership if he seeks bipartisan support.

See Also: Former Prosecutor Says ‘It’s Going To Be Impossible’ To Get Unbiased Jury In Trump’s DC Case

Why It Matters: According to Benzinga, PIMCO warned, that a full government shutdown could delay the Federal Reserve’s planned interest rate hike in November. PIMCO’s Head of Public Policy, Libby Cantrill, suggested that the complex dynamics within the House Republicans could extend a government shutdown if it occurs.

Earlier, Benzinga reported that in an attempt to prevent a government shutdown, Speaker McCarthy had urged his party to stop opposing the proposed spending plans. He highlighted that a government shutdown benefits no one.

Senate Minority Leader Mitch McConnell (R-Ky.) also cautioned his party about the political risks associated with government shutdowns. He emphasized that government shutdowns have always been a political blunder for the Republicans, yielding no significant policy changes.

Photo by Shuttershock.

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