Border Wall Funding: Shutdown Likely

Border Wall

Funding for several United States federal agencies will likely run dry before lawmakers can reach a budget agreement this December. With funding for President Trump’s border wall currently at the center of debate, it’s likely that the government will undergo at least a partial shutdown before the end of the year.

Senior White House adviser Stephen Miller said during the weekend that “We will do whatever is necessary to build the border wall to stop this ongoing crisis of immigration.” When asked by reporters if this would mean a government shutdown, Miller said “If it comes to it, absolutely.”

Border Wall Funding Offered is Not Enough

Miller’s sentiments echo those of President Trump last week, who said that he would be “proud” to shutdown the government if he didn’t get funding to improve security along the border.

A bipartisan Senate bill is ready to be put to a vote with lawmakers, although only $1.6 billion in funding has been offered for Trump’s project. This would cover new fencing and other fortifications but falls far short of the $5 billion that is needed to build a wall and purchase new electronic security systems. Security along the Mexican border is critical for Trump. The wall was a key promise put forward during his campaign for Presidency.

Not all government departments would be impacted by a shutdown. Most agencies, like Health and Human Services, the Department of Defense, and the Department of Veterans Affairs already have funding well into 2019. Those at risk include the Justice Department, State Department, National Parks, Transportation, and Homeland Security. The stop in funding would mean that these departments would run at minimal functionality until a new budget is approved in Congress.

Trump Hasn’t Rejected Democrat Proposal

The President met with Democrats Nancy Pelosi and Chuck Schumer last week for a heated televised meeting where funding and the border were discussed. President Trump didn’t outright turn down the $1.6 billion in funding that is on the table, but he did indicate that it wouldn’t be enough. There are other options that haven’t been as widely covered, such as an existing bill proposed by Senator Susan Collins, which would provide $2.5 billion for security along the border.

Republican lawmakers are still positive that a stop gap bill could be approved to keep funding running until January, after which a more permanent solution can be found. Both the House of Representatives and the Senate will reconvene this week, leaving just days to find a solution before the holiday break.

 

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The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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