U.S. Senate Republican leader pushes a compromise to end the shutdown

JH Kim

Summary

U.S. Senate Republican leader John Thune reportedly presented a new compromise to end the shutdown.
He said that operations of some agencies have been suspended due to delays in passing the federal budget bill.
He warned that a delay in political agreement could lead to a slowdown in 4th-quarter economic growth and a contraction in consumption, hitting the real economy.

U.S. Senate Republican floor leader John Thune(John Thune) presented a new compromise to end the federal government shutdown.

On the 7th (local time), according to economic news channel Walter Bloomberg(Walter Bloomberg), Thune plans to bring the short-term budget bill passed by the House to the floor, extend its expiration to January next year, and pursue an amendment that merges 3 annual spending bills. This is a strategy to apply political pressure on the Democrats and bring about an end to the shutdown.

The Democrats, based on recent local election victories, are maintaining a hard line by demanding an extension of expanded subsidies under the Affordable Care Act(ACA). Thune is mindful that some retiring Democratic senators may enter negotiations, but at least 5 bipartisan votes are needed for the bill to pass.

Currently, the U.S. federal government has suspended operations of some agencies due to delays in passing the budget. If the political sphere fails to reach an agreement quickly, the real economy is expected to be hit, with a slowdown in 4th-quarter economic growth and a contraction in consumption.