US politics: Interim budget passed – shutdown dangers remain!

US politics: Interim budget passed – shutdown dangers remain!

In the USA, a turning point in the ongoing budget crisis is emerging. The House of Representatives has approved an interim budget until the end of January, which could free government business from its weeks-long standstill. This means that the two major parties, despite their differences, have found a compromise to act early in the session. In the vote, 222 MPs voted for and 209 against the interim budget, with some Democrats voting despite their party opposing the majority.

There has been no regular federal budget since October 1, resulting in a drastic delay in the payment of salaries to government employees. The uncertainty has even led to numerous canceled flights and a decline in food aid, making life downright difficult for many Americans. A shutdown is the moment when the government runs out of resources and many government services come to a standstill. Non-essential positions are often threatened with closure, while essential services such as the military and emergency services continue to operate without delay, even if their salaries are transferred later. This is particularly unfortunate since over 20 million people rely on certain Medigap programs, whose continued funding depends on negotiations between Republicans and Democrats.

Deeper insights into the current situation

With President Donald Trump's signature, which is expected on Wednesday evening (local time), the interim budget could come into force and stabilize the government for the time being. The budget negotiations were marked by fundamental political disputes, particularly regarding the extension of tax credits that would help the insured. While Democrats called for the continuation of this aid, Republicans rejected it, pointing out that approval could come in the health reform bill in December.

In recent weeks, a dynamic of tension has developed between the parties, based on deep-rooted differences over health care finances. Loud daily news Republicans have rejected strict measures to cut Medicaid, exacerbating the ongoing conflict between the two political camps.

The longest shutdown in US history?

The shutdown, which has now lasted 43 days, has already set a new record, as the previous one lasted 35 days during the conflicts at the turn of the year 2018/2019. The entire spectrum of services is affected and the consequences are serious for both citizens and the economy. Experts warn that such a political blockade not only affects government spending, but also the stability of financial markets as important data releases are missed.

It remains to be seen how the situation will develop by the end of January. If no regular budget is passed, there could be a further shutdown of government business in February. An outlook on the negotiations is accompanied by a tense atmosphere, but the current decisions at least show a step towards a sustainable solution.