The U.S. begins a key day to avoid the “shutdown”

Congress in the U.S.

Congress has until midnight to extend the budget and avoid a federal government shutdown. It is also urgent to raise the debt ceiling to avoid a default with global consequences.

The United States Congress has until midnight this Thursday to extend the budget and avoid a federal government shutdown, at a time when the shadow of a moratorium looms over the country, which would have catastrophic consequences for the markets. worldwide.

And with Democratic President Joe Biden struggling to pass his social spending and infrastructure megaprojects and the impending default on the debt ceiling, the government shutdown looks like the least of the problems.

The stakes are so high that Biden chose to cancel a trip to Chicago and spearhead negotiations with lawmakers.

And while the president seeks support for his two projects, the congressmen are doomed to prevent the federal State from running out of budget, which would affect ministries and federal agencies, leading thousands of employees to technical unemployment.

To do this, they must pass a law to extend this budget, which expires at midnight.

This seems feasible because there is consensus among legislators. However, the atmosphere of tension due to party divisions and the narrow margin can complicate everything.

U.S. Congress

Senate Democratic Leader Chuck Schumer announced that the vote will take place Thursday morning on a text that would extend the current budget until December 3.

Enough Republican senators are expected to vote to move the bill forward and avoid a shutdown, before it goes to the House of Representatives, where Democrats hold a majority, prior to being enacted by Biden.

Avoiding a government shutdown would avoid tensions amid negotiations over Biden’s projects and the threat of default.

Legislators must increase the debt capacity of the United States before October 18 if they want to avoid the first default in the history of the world’s largest economic power.

Republicans refuse to suspend the debt issuance limit, believing that it would be a blank check for the Biden government.

That is why they left the decision in the hands of the Democrats, who will have to appeal to their own votes to approve this measure through a parliamentary maneuver that could take time.

But Schumer assures that “this route is too risky”, and remembers that the debt was accumulated mainly under the government of Donald Trump.

The House of Representatives approved a text on Wednesday that plans to suspend the debt ceiling until December 2022, but without Republican support in the Senate, the initiative was born dead.

There is much uncertainty about what the solution will be that Congress will find.

Regarding the Biden plans, lawmakers from the left-wing of the Democratic Party threatened to derail a final vote on the infrastructure project (a trillion dollars) scheduled for Thursday in the House, outraged that they have not received firm guarantees from the centrists on the advance of the gigantic plan of social reforms (3.5 trillion dollars).