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U.S. Congress seeks to ward off government shutdown as Biden agenda at risk By Reuters

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© Reuters. View of the U.S. Capitol through a skylight window, Washington, U.S.A, September 29, 2021. REUTERS/Tom Brenner

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By Richard Cowan

WASHINGTON (Reuters) – Democratic divisions were imperiling President Joe Biden’s agenda to invest in infrastructure, expand social services and address climate change as the U.S. Congress simultaneously faced a Thursday deadline to avert a government shutdown.

The Congress had the ability to approve funding to new agencies through December 3. Moderate and progressive Democrats were fighting over billions of dollars for expanded family leave, elderly medical care and better supports for children.

The Democratic-controlled Senate and House of Representatives were expected to pass the temporary funding bill by midnight on Thursday, avoiding a partial government shutdown like the one in late 2018 and early 2019 that lasted 35 days.

The House is scheduled to vote on the $1 trillion infrastructure bill passed by the Senate in a bipartisan vote last month. The House Republicans have been abandoning the bill ever since, in an effort to deny Biden victory.

However, it was not clear if the vote would occur. House Speaker Nancy Pelosi was confronted by a group of influential progressive Democrats, who advised her to hold off until an even larger domestic investment bill worth $3.5 trillion is passed.

The moderates wanted a smaller package. Negotiations on the deal could take weeks or even longer.

In addition to keeping the government running smoothly, this stop-gap spending bill would also help communities that have been affected by wildfires, hurricanes, and other natural catastrophes. Also included is money for Afghan refugee aid.

Congress was also engaged in another struggle.

The fight over giving additional borrowing authority to the Treasury Department, above the $28.4 trillion statutory limit continued between Republicans and Democrats. A major debt default may occur in October 18th, Treasury Secretary Janet Yellen estimated. If Congress doesn’t act soon.

Republicans say they don’t want to be part of any debt limit increases, and that is because it is Democrats who are in control of Congress.

On Wednesday night, the House passed a bill to suspend the debt limit up until December 2022. Sen. Republicans could block the bill on Thursday.

The Capitol was rife with tensions on Wednesday.

House Democrats called on moderate Democratic Senators Joe Manchin, Kyrsten Sinema and Kyrsten Toomey to publicly state their views after rejecting the $3.5 trillion Biden social investment bill.

Pramila Jayapal is the chairperson of House Progressive (NYSE.:) Caucus. “They should come up with their counteroffer, and then we sit back and negotiate from there.”

Both have so far refused to outline the scope and size of their support.

Manchin issued a statement late on Wednesday saying, “Spending trillions more on new and expanded government programs, when we can’t even pay for the essential social programs like Social Security and Medicare, is the definition of fiscal insanity.”

Also, Manchin told reporters Wednesday that it could take up to weeks for him to negotiate the massive “social infrastructure” bill. That would complicate Democrats’ chances of passing the legislation that would fund road- and bridge building projects and other initiatives that are supported by the business community.

An Ipsos poll that was conducted by Reuters for Reuters Tuesday and Wednesday found that Americans both on the left and right are concerned about the looming crisis in debt.

The poll found that 65 percent of Americans, eight out of 10 Democrats, and five out 10 Republicans are concerned about Congress failing to make a deal on debt.

A poll found that 33% of Americans believe Congress should be blamed for a shutdown. 21% blame Democrats and 16% blame Biden.



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