The United States Congress passed a spending bill to avert a government shutdown just ahead of the deadline on Friday night. Without the bipartisan agreement, the US would have missed its second mandated shutdown in two years.
A six-month spending bill was passed at the eleventh hour and should set the stage for months of heated debate over an expansive fiscal policy for the nation. President Trump has already set his sights on much-needed stimulus for a struggling economy, which could include hefty portions of federal aid.
The spending agreement does offer a few victories for both sides. The Democrats achieved the continuation of money for the US Post Office, while Republicans secured additional funding for a border wall construction. Additional funds are also expected for veterans health care, student loan assistance, and public housing.
The issue of rising levels of debt was only addressed by a short-term freeze in controlling debt ceiling. This means that no limit currently exists for government debt, and many analysts are concerned about the potential impact on the nation’s financial future.
The fight over fiscal policy in the months ahead is expected to be bruising, with Trump and other Republicans pushing for tax cuts while Democrats seek to increase social welfare spending. In addition, the amount of aid needed for those states struggling due to the pandemic could significantly increase the deficit.
Without a long-term agreement on spending and debt limits, Congress could be facing another potential government shutdown in the near future. The financial strain due to the COVID-19 pandemic has already weakened the US economy, exacerbating the already precarious balance between taxation and stimulus, making it a difficult subject to tackle.
The passing of the most recent spending bill is a relief for both parties, but it is far from the comprehensive agreement needed to secure a sound financial situation for the nation’s future. As fiscal policy negotiations commence in the coming months, it will likely be a long and frustrating road for both Congress and the American people.
The United States Congress passed a spending bill to avert a government shutdown just ahead of the deadline on Friday night. Without the bipartisan agreement, the US would have missed its second mandated shutdown in two years.
A six-month spending bill was passed at the eleventh hour and should set the stage for months of heated debate over an expansive fiscal policy for the nation. President Trump has already set his sights on much-needed stimulus for a struggling economy, which could include hefty portions of federal aid.
The spending agreement does offer a few victories for both sides. The Democrats achieved the continuation of money for the US Post Office, while Republicans secured additional funding for a border wall construction. Additional funds are also expected for veterans health care, student loan assistance, and public housing.
The issue of rising levels of debt was only addressed by a short-term freeze in controlling debt ceiling. This means that no limit currently exists for government debt, and many analysts are concerned about the potential impact on the nation’s financial future.
The fight over fiscal policy in the months ahead is expected to be bruising, with Trump and other Republicans pushing for tax cuts while Democrats seek to increase social welfare spending. In addition, the amount of aid needed for those states struggling due to the pandemic could significantly increase the deficit.
Without a long-term agreement on spending and debt limits, Congress could be facing another potential government shutdown in the near future. The financial strain due to the COVID-19 pandemic has already weakened the US economy, exacerbating the already precarious balance between taxation and stimulus, making it a difficult subject to tackle.
The passing of the most recent spending bill is a relief for both parties, but it is far from the comprehensive agreement needed to secure a sound financial situation for the nation’s future. As fiscal policy negotiations commence in the coming months, it will likely be a long and frustrating road for both Congress and the American people.
