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fiscal crises

Senate Majority leader Harry Reid has warned that his Democratic-led chamber will reject a House Republican bill to avert a government shutdown.

Early on Sunday, the Republican-led House of Representatives passed its amended version of the Senate bill, removing funding from President Barack Obama’s healthcare law.

There is now less than 48 hours to avert a shutdown, which will begin on Tuesday if no spending bill is passed.

The Senate is not due to meet again until Monday afternoon.

In a statement, Senator Harry Reid said that “after weeks of futile political games from Republicans, we are still at square one”.

Harry Reid added that Republican efforts to change the bill – that would delay the healthcare law for a year and repeal a tax on medical devices – were pointless.

Senate Majority leader Harry Reid has warned that his Democratic-led chamber will reject a House Republican bill to avert a government shutdown

Senate Majority leader Harry Reid has warned that his Democratic-led chamber will reject a House Republican bill to avert a government shutdown

Speaking for the president, White House spokesman Jay Carney said: “Any member of the Republican Party who votes for this bill is voting for a shutdown.”

The president, he said, would also veto the Republican bill.

However, House Republicans went ahead with the changes, ignoring the veto threat and passing the bill in a late-night session by 231 votes to 192.

The Senate is controlled by Barack Obama’s Democratic party, while the Republicans hold the majority in the House of Representatives.

“House and Senate like two locomotives barreling toward one another … in slow motion,” tweeted Republican Representative Scott Rigell.

The looming shutdown ,which would be the first in 17 years, is one of two fiscal crises facing the US government. On October 17, the US treasury department’s authority to borrow money to fund its debt obligations expires unless Congress approves a rise in the so-called debt ceiling.

On Friday, President Barack Obama urged House Republicans to pass the Senate’s stopgap budget bill and to extend the debt limit, and demanded they not threaten to “burn the house down because you haven’t gotten 100% of your way”.

Barack Obama said if the nation were to default on its debt, it would have a “profound destabilizing effect” on the world economy.

“Voting for the treasury to pay its bills is not a concession to me,” Barack Obama said.

“No-one gets to hurt our economy… just because there are a couple of laws [they] don’t like.”

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The US government careens toward a potentially devastating shutdown as Republicans and Democrats in Congress remain deadlocked on a budget to continue its funding.

Agencies have begun making contingency plans ahead of the October 1st deadline to pass a new funding resolution.

The Senate has passed a bill to fund the government through November 15.

But House Republicans have said they refuse to approve the bill absent a provision to strip funding from President Barack Obama’s health law.

The Senate is controlled by Barack Obama’s Democratic party, while the Republicans hold the majority in the House of Representatives.

As a result, lawmakers are at a stalemate as the deadline approaches.

Government agencies have been selecting workers considered essential should funds stop flowing.

The looming shutdown is one of two fiscal crises facing the US government. On October 17, the US treasury department’s authority to borrow money to fund its debt obligations expires unless Congress approves a rise in the so-called debt ceiling.

On Friday afternoon, President Barack Obama urged House Republicans to pass the Senate’s stopgap budget bill and to extend the debt limit, and demanded they not threaten to “burn the house down because you haven’t gotten 100% of your way”.

 President Barack Obama urged House Republicans to pass the Senate's stopgap budget bill and to extend the debt limit

President Barack Obama urged House Republicans to pass the Senate’s stopgap budget bill and to extend the debt limit

Barack Obama said if the nation were to default on its debt, it would have a “profound destabilizing effect” on the world economy.

“Voting for the treasury to pay its bills is not a concession to me,” he said.

“No-one gets to hurt our economy… just because there are a couple of laws [they] don’t like.”

The president described the healthcare law as “a done deal” and said the Republican-backed repeal effort was “not going to happen”.

Barack Obama said the Senate had “acted responsibly” in passing the budget measure and that now it was up to Republicans in the House of Representatives “to do the same”.

If the government does shut down on October 1st, as many as a third of its 2.1 million employees are expected to stop work – with no guarantee of back pay once the deadlock is resolved.

National parks and the Smithsonian museums in the nation’s capital would close, pension and veterans’ benefit cheques would be delayed, and visa and passport applications would be stymied.

Programmes deemed essential, such as air traffic control and food inspections, would continue.

The defense department has advised employees that uniformed members of the military will continue on “normal duty status”, but “large numbers” of civilian workers will be told to stay home.

Last week, the US House of Representatives a bill that would maintain the US government’s funding levels through November 15 but strip funding from Barack Obama’s health law, known as Obamacare.

On Friday the Senate passed a version of the bill with the defunding provision removed 54-44, largely on party lines.

“The Senate has acted and we’ve done it with bipartisan co-operation. We’ve passed the only bill that can avert a government shutdown Monday night,” Democratic Senate leader Harry Reid said.

“This is it, time is gone.”

The House is now expected to take up that bill at the weekend. Unless the two chambers can come to a consensus and pass a bill for Barack Obama to sign, the federal government will close on October 1st.

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