Washington and Wall Street were optimistic Monday that Congress can pass a bill to fund the government and avert a partial shutdown before a Friday deadline.
It was unclear for how long lawmakers would try to keep the government running. Democrats have a list of priorities in the coming weeks as they try to avoid a shutdown, pass their $1.75 trillion Build Back Better bill, boost the debt limit and approve a new defense budget bill.
Congressional staff and Washington policy analysts who spoke to CNBC on Monday sounded hopeful about Congress’ chances to pass a temporary spending plan known as a continuing resolution. Failing to pass legislation before the end of Friday could trigger furloughs of government workers and a lapse in some federal services.
As of noon ET Monday, Democrats and Republicans appeared to be coalescing around a bill that would fund the government through late January or early February, a person familiar with the discussions told CNBC. The chief negotiators are confident they can reach a deal to avoid a shutdown before time runs out, another aide said.
Those people asked not to be named in order to speak openly about ongoing and private talks between party leadership.
Some on Wall Street shared the optimism.
“The good news is that both sides of the aisle want to avoid a government shutdown and Republicans seem unwilling to mount a filibuster that could delay a spending bill. The open question that should be resolved before Friday is how long the next CR will be,” Tom Block, Washington policy strategist at Fundstrat Global Advisors, wrote in an email Monday morning.
He explained that some Democrats want to extend government funding by a matter of weeks to force Congress to make more significant changes to spending priorities in the current fiscal year. If lawmakers pass a continuing resolution for a longer period of time, it would lock in spending at current levels.
However lawmakers decide to proceed, Senate Majority Leader Chuck Schumer, D-N.Y., will need to convince Senate Minority Leader Mitch McConnell, R-Ky., to pass a continuing resolution by the end of the week. Senate Republicans are not expected to oppose a short-term funding bill just ahead of the year-end recess.
“After the House takes action this week, the Democratic Senate will move forward to make sure the government remains funded after the deadline,” Schumer said Monday afternoon. “It’s important to get it done, and we are working to get it done.”
A representative for McConnell said negotiations are ongoing but declined to comment further.
Source Article from https://www.cnbc.com/2021/11/29/government-shutdown-congress-aims-to-pass-funding-bill.html
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