Government Shutdown May Happen After All

Government shutdown

There have been plenty of mixed signals surrounding the potential government shutdown this week. It was reported on Thursday that a shutdown would likely be averted, and that President Trump would reluctantly sign a stopgap spending bill to keep the government open.

The bill, which would have to pass through the House of Representatives, was believed by Senators in the upper house to be near-guaranteed.

In a surprising development, the House of Representatives did not approve a stopgap spending bill, but instead approved a bill that includes the complete $5.7 billion that the President needs to build a border wall.

What Happened to the Stopgap Spending Bill?

Multiple news sources and Washington insiders believed that a temporary stopgap bill would be approved in the House of Representatives on Thursday. Here’s how it played out on Capitol Hill…

  • The Senate approved a bipartisan bill on Wednesday that would keep the government funded up until February 8. It included $1.3 billion for border security but no money for a wall.
  • Senators, including Majority Leader Mitch McConnel, believed that the bill would easily pass through the House.
  • The House rejected the bill on Thursday and instead approved a different bill, which includes funding for the government, disaster relief, and $5.7 billion for Trump’s border wall project.
  • The Senate will now vote on the new bill received from the House.

Wall funding is unlikely to pass through the Senate. Democrat Senators are likely to vote against it, and full support doesn’t exist within the GOP.

The most likely situation is that the Senate alters the bill; keeping disaster relief funding and removing wall funding. This would send the bill back to the House, where it may not receive a passing vote.

Trump Apparently Determined to Government Shutdown Without Wall Funding

Representative Mark Meadows from North Carolina said after a meeting at the White House that “I looked him [Trump] in the eyes today, and he was serious about not folding without a fight.”

Trump took to Twitter on Thursday to say that “I was promised the Wall and Border Security by leadership. Would be done by end of year (NOW). It didn’t happen!” The President and millions of Americans believe the wall to be essential for national security.

This story will continue to develop today and possibly into next week. Any partial shutdown of the government would leave Federal employees furloughed or on duty without pay until funding is approved.

 

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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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