Editor's PiCK

Will the U.S. federal government enter a shutdown after midnight on the 30th (local time)?

Source
Korea Economic Daily

Summary

  • The U.S. federal government is likely to enter a shutdown after midnight on the 30th.
  • The Democratic and Republican parties failed to reach an agreement over the budget bill and demands to extend Obamacare tax credits.
  • Jeffries, the House Democratic leader, warned that a shutdown could lead to premium increase notices affecting tens of millions of Americans.

Shutdown risk after failure to agree on the budget

Republicans launch strong offensive against Democrats…"Do the right thing"

Democrats demand extension of Obamacare tax credits

With Congress failing to reach an agreement on the budget, the U.S. federal government appears likely to enter a shutdown after midnight on the 30th (local time). The Republican Party and the Democratic Party remain at odds, refusing to accept each other's demands.

Mike Johnson, Speaker of the House (Louisiana), raised his voice toward the Democrats, saying, "Get a grip and do the right thing." Johnson criticized the Democratic leadership—Senate leader Chuck Schumer and House leader Hakim Jeffries (both New York)—saying they have set policy demands in exchange for passing a short-term spending measure (continuing resolution, CR) that would guarantee government operations for at least seven weeks, and that they "are cornering themselves."

The Democrats argue that the short-term budget must include an extension of Obamacare tax credits. These tax credits help lower premiums for those enrolled in Obamacare and are set to expire at the end of 2025.

Johnson accused the Democrats of insisting on the demand "to protect Schumer." He warned that if progressive members such as Representative Alexandria Ocasio-Cortez (D–New York) strongly oppose it, Schumer could lose his standing within the party. He also claimed the Democrats "want to give federal health benefits to undocumented immigrants."

Senate leader John Thune (South Dakota) of the Republican Party called the issue of extending Obamacare tax credits "a problem fabricated by the Democrats," saying it is an attempt to appease anti-Trump voters. He said, "This is just a Donald Trump issue."

In response, House Democratic leader Jeffries countered on the same program, "If the government shuts down, that is the Republican Party's choice." He said, "We are ready to find a bipartisan solution," but emphasized that he cannot support the Republicans' budget, which lacks health insurance protections.

Jeffries said, "We are fighting to protect the health of the American people," warning that notices of premium increases will soon be sent to tens of millions of Americans.

New York = Park Shin-young, correspondent nyusos@hankyung.com

publisher img

Korea Economic Daily

hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
What did you think of the article you just read?