Millions of federal workers will be put on unpaid leave
The U.S. government could run out of money at midnight Saturday and shut down because of a disagreement between Democrats and Republicans over the budget, according to CNN.
So, if there is no agreement by Oct. 1, millions of federal workers will be put on unpaid leave, which will cause several government agencies to shut down. This could have adverse effects on the US economy, undermining the confidence of businesses and consumers who already have fears that a recession is coming.
Lawmakers must pass 12 different spending bills to fund agencies across the government, but the process is taking a long time. To avoid a “shutdown”, the government often resorts to accepting a temporary extension of the budget, which allows it to continue to work, notes the BBC.
Meanwhile, House Speaker Kevin McCarthy is trying to pass a temporary funding bill. But the right-wing faction in his party refuses to budge. From there, they are pushing for massive spending cuts on top of those laid out in the deal McCarthy struck with Biden earlier this year to raise the government’s borrowing limit as a catastrophic debt default loomed. Others want to end US support for the war in Ukraine.
If moderate Republicans cut a deal with Democrats to pass a budget in the House, then that faction fears they will oust McCarthy as Speaker. Any House budget must pass the Democratic-controlled Senate, the upper chamber, and then be signed by Biden.
