US federal agencies ‘looking at all options’ to avoid government shutdown

The White House budget office is set to ask federal agencies to prepare for a US government shutdown, the first of its kind since the COVID-19 pandemic began in March 2020. The federal government faces a shutdown if funding stops on September 30, the end of the fiscal year.

Seven days ahead of the deadline, both Democrats and Republicans intend to fund the government before its funding expires.

On Tuesday, the House voted to keep the government funded, suspend the federal debt limit and provide disaster and refugee aid, setting up a high-stakes showdown with Republicans who oppose the package despite the risk of triggering a fiscal crisis.

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“Every single member of this chamber is going to go on record as to whether they support keeping the government open and averting a default, or support shutting us down and careening our country toward a first-ever default,” Senate Majority Leader Charles E. Schumer (D-N.Y.) said to open debate on the chamber floor, as per Washington Post reports. 

Senate Majority Leader Chuck Schumer of New York and House Speaker Nancy Pelosi of California announced the development as Biden administration officials and Democratic congressional leaders negotiated behind the scenes on the mammoth package of spending and tax initiatives.

“We’re looking at all the options, but a government shutdown is not acceptable,” said Senator Chris Van Hollen, a member of the chamber’s budget committee.

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 Schumer and House Speaker Nancy Pelosi of California announced the development as Biden administration officials and Democratic congressional leaders negotiated behind the scenes on the mammoth package of spending and tax initiatives.

Democratic leaders and President Joe Biden have wanted the measure to total some $3.5 trillion over 10 years.

“We’ve been through this a million times, so there are many, many approaches as to how you can raise money in a fair and progressive way, and raise at least three and a half trillion dollars. If that’s what the menu is, then nothing particularly new, I think,” Senate Budget Committee Chairman Bernie Sanders said Thursday. 

With inputs from the Associated Press