Congress Shutdown Negotiations Hit Hurdle on Border Spending

Shutdown

The United States Congress has until February 15th to reach a new spending agreement that would keep the government open beyond this week. After the longest shutdown in history, there appeared to be strong bipartisan willingness to avoid another partial shutdown this month.

Following from early signs of positive negotiations, it now appears that talks have stalled with less than a week before a formal spending bill must be presented.

No Agreement Over Border Funding Issues

Lawmakers involved in discussions appear to have mixed feelings on the talks so far.

During the weekend, Senator Richard Shelby told Fox News Sunday that “Talks are stalled right now, I’m not confident we’re going to get there.” The Republican Senator for Alabama said that negotiations broke down due to Democrats wanting fewer beds in detention centers.

Rep. Lucille Roybal-Allard, a Democrat from California, said in a statement on Sunday said that “A cap on ICE detention beds will force the Trump administration to prioritize deportation for criminals and people who pose real security threats, not law-abiding immigrants who are contributing to our country.”

Sources have said that Democrats would be flexible on border funding if it meant that some of their own demands would be met.

President Trump was extremely critical of the Democrat position. He said in a Twitter post on Sunday that “I don’t think the Dems on the Border Committee are being allowed by their leaders to make a deal. They are offering very little money for the desperately needed Border Wall & now, out of the blue, want a cap on convicted violent felons to be held in detention!”

A Second Shutdown Would be Hugely Unpopular

Democrats have been unwilling to fund a border wall since before the first shutdown was even initiated. President Trump only agreed to reopen the government because Democrats promised to negotiate on funding issues.

Of course, this was never a guarantee that both sides would be able to meet in the middle.

The risk for the President and both parties is that a new shutdown would further erode confidence in the government. The first shutdown was deeply unpopular, and polls showed that citizens put the blame mostly on the Republican controlled Senate.

Avoiding a shutdown is undoubtedly a priority for both parties, however, a middle ground still needs to be found, and without flexibility from both sides America may need to brace itself for another disruptive and highly costly federal funding lapse.

 

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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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