House Approves Spending to Avoid Shutdown

Shutdown

The House of Representatives has approved a stopgap spending measure to prevent a government shutdown in 2020. A strong majority of Representatives voted in support of extending federal funding through to December 11.

This will keep the government operating in its full capacity during the upcoming Presidential Election. Support for the measure was bipartisan and will now go to the Senate for a vote before the September 30 funding deadline.

Voting Came After a Last-Minute Negotiation

The voting came shortly after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin agreed to include billions of assistance and relief payments for farmers. Agricultural operators have been heavily impacted by the Coronavirus Pandemic and ongoing trade tensions with China and Europe.

The spending stopgap is only a temporary measure. It is expected that it will pass in the Senate without any major opposition. It will then be presented to President Trump for his final approval. It covers essential government departments and spending initiatives but leaves some of the more contentious issues for the next budget negotiations. Border wall funding and certain aspects of military funding will need to be negotiated after the Presidential Election.

Averting the Risk of a Shutdown

Political and economic analysts were concerned that the House would fail to reach an agreement on funding before the September deadline. Negotiations in recent weeks have been tense. Representatives and officials from the White House had pushed for varying agendas, leading to concern that some aspects of the government would shut down this year.

Speaking to his colleagues and media, House Majority Leader Steny Hoyer said this week that “We have an agreement that will keep the government functioning for the people… this is the best we have, so we need to take it.”

Beyond the agricultural aid mentioned, another key aspect of the funding is $8 billion in nutrition assistance for families during the Coronavirus Pandemic.

The stopgap measure won’t include any major stimulus, which will need to be addressed after the election. Democratic Representative Debbie Wasserman Schultz said on the floor that the fact the government is passing a spending bill without “additional COVID stimulus” is cruel and represents “gross incompetence.”

Some analysts believe that the bipartisan nature of this spending measure could create goodwill between opposing Senators and Representatives, making the next round of negotiations more productive.

At least for the meantime, investors and the wider public can have confidence knowing that a 2020 shutdown has been averted.

 

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.

 

 

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.

 

You May Also Like