us-ca
On December 20, the US House of Representatives rejected the budget bill proposed by the Republican Party with 174 votes in favor and 235 votes against. This bill aimed to maintain government operations for an additional 3 months, but it did not meet the important demands from the Democratic Party, including raising salaries for lawmakers and reforming pharmaceutical management.
Controversial Bill Content
The new bill proposed by the Republican Party aims to extend the government's budget until 03/2025, the time when former President Donald TRON is expected to return to the White House and the party controls both chambers. The bill also includes a disaster relief package worth more than $100 billion and suspends the public debt ceiling until 01/2027.
The suspension of the public debt ceiling for 2 years is expected to help the new TRON administration implement aggressive tax cut policies, but it could also cause the federal debt to reach a record high of $36 trillion.
However, the Republicans have removed the initial provisions such as raising salaries for lawmakers and tightening regulations on pharmacy benefit managers. This has faced strong opposition from the Democratic Party, who argue that the bill is essentially a tool to implement tax cut plans that benefit the wealthy, such as billionaire Elon Musk, while further burdening the public with public debt.
Budget Crisis and Government Shutdown Risk
If a budget agreement is not reached before December 21, the US government risks a partial shutdown. Important agencies such as the Securities and Exchange Commission (SEC), the Department of Labor, and the Department of Commerce will be forced to suspend operations. This means that economic reports such as the CPI and Nonfarm will be delayed, while thousands of federal employees may have to take unpaid leave or work without pay, increasing social instability.
