Could 2025 Be A Year Without A Government Shutdown Showdown? | Global News Avenue

The deadline to fund the federal government is looming again, but Republican victories in November’s elections make longstanding partisan gridlock over the budget and the threat of a government shutdown unlikely.

Democratic lawmakers are negotiating a deal with Republicans to extend the critical Dec. 20 deadline that would otherwise government shutdownaccording to a report Politico. Senate Majority Leader Chuck Schumer, a Democrat from New York, told news outlets that his party was preparing to agree to a stopgap funding measure that would delay finalizing the budget until January. After an elected Republican-led Congress took power.

If the measure passes, the incoming Republican-controlled Congress will set a budget for the U.S. government next year, reducing the possibility of a partisan confrontation over threats from one side to shut down the government.

How do we create the federal budget?

The federal budget is due in September, but the Republican-led House of Representatives and the Democratic-controlled Senate have been unable to reach an agreement. They passed a continuing resolution, effectively Betting Deadline to later this year.

Now, Congress is preparing to make a second bet on avoiding the deadlock in which control of the government is divided between the two parties that has frequently occurred in recent years.

What’s next for federal spending?

Shortly after the budget deadline, Congress will have to address the following issues: debt ceilinga limit on how much the United States can borrow.

one 2023 deals The deadline to extend the debt ceiling expires on January 1, after which lawmakers must vote to raise it. Otherwise, the United States will face the risk of defaulting on US$36 trillion in national debt and may trigger a financial crisis. Democrats and Republicans have clashed over the debt ceiling in the past, with the party out of power in the White House sometimes threatening to block debt-ceiling legislation.

The debt ceiling is likely to continue to be an issue for the foreseeable future, as incoming President Donald Trump’s tax cuts are widely predicted to higher budget deficit. Despite the Republican majority, Senate filibuster rules give the minority the ability to block a debt ceiling increase.

often Showdown over budget and debt ceilingThis often leads to last-minute compromises to avoid crises and causes some anxiety in financial markets about the U.S. government’s willingness to deliver on its promises national debtthey are the backbone of the global financial system. Credit rating agencies, including Moody’s and Fitch, damage the government’s credibility In 2023, the debt ceiling is in stalemate.