US govt prepares for shutdown from Oct 1 as Congress offers no solution

WASHINGTON: The US government is preparing up for an indefinite shutdown notifying all state agencies to go into emergency preparedness to prioritise expenditure as Congress failed to endorse the Senate's Continuing Resolution bill and voted out a defence expenditure bill that preceded it.

The government will shut down at 12.01 a.m. Eastern Time Sunday if Congress fails to pass legislation to renew funding by the deadline.

With Hard-line Republicans pushing for deep spending cuts, the possibility of a shutdown is high, even as a bipartisan approach by liberal minded republicans and democrats to push the continuing resolution in the house appears very dim given the time frame. Its shut down time really, media reports said.

Most legislators have gone home to their constituencies to attend fundraising events and the speaker told them to be prepared to return in the event of an emergency if a solution emerges. Given the time period it seems difficult to hammer out a solution, media reports said.

A bipartisan group of Democrats and Republicans were huddled in the chief whip of the Republican's chambers to find a quick fix solution to end the impasse and keep the government open, the Washington Examiner said.

Meanwhile, reports from New York said that the imminent government shutdown from Sunday will have far reaching consequences in the Tri-State Area – (New York, New Jersey and Connecticut) unless the House is somehow able to pull a rabbit out of a hat, reports said.

Budget analysis warned the people "Buckle your seatbelts because a shutdown will not be pretty". It will affect airports, critical federal aid payments to parents and children, and the ability of officials to get work permits for asylum seekers.

Jeffries was utterly frustrated by the Republicans action to block the advancement of 12 legislations including the Continuing Resolution and the growing likelihood of a government shutdown, which could have a devastating effect on an economy already reeling from inflation and high interest rates.

They recalled with vivid memory the last government shutdown that began in December 2018 with then-President. Ex-President Donald Trump and Democrats in a 35-day face off on a standoff over his demand for funding for a border wall.

A government shutdown impacts Wall Street’s financial markets, America's bond ratings, the military, border security and the financial stability of hundreds of thousands of Americans as funds stop flowing into them, CBS News said.