The bankruptcy risk in the US seems to have passed

The risk of a US government default appears to have receded. A shutdown is called next Saturday if no plan is presented a day earlier to organize the US finances.

America is more likely to face bankruptcy risk. Usually, Democrats and Republicans in Congress can’t stop it, and it seems to be happening again. Many Democrats have expressed support for the plan proposed by the new Speaker of the House of Representatives, Mike Johnson. He wants to continue the government’s operation known as the ‘Interim Funding Scheme’.

The House plans to vote on the temporary funding plan Tuesday afternoon local time, which requires a two-thirds majority for approval, which would require the support of a large number of Democratic lawmakers. Hardliners on the conservative side made it clear to Johnson that they would vote against the plan if he did not immediately meet demands for deep cuts or changes to immigration law. Democrats are unhappy that the plan does not include emergency aid for Israel or Ukraine. In addition, the project is a confirmation shutdown Not blocked, but postponed. But party leaders have hinted they will accept the interim plan as it keeps government funding at current levels.

Also Read | Yellen: Shutdown undermines US economic growth

Groundhog Day

The White House, which reacted strongly when the bill was first made public on Saturday, has since softened its stance. President Joe Biden declined to threaten a veto yesterday when given the chance.

If the law is passed, a large part of the US government will be able to function until January 19, 2024, and another part will be able to function on February 2. groundhog day, Only one shutdown has to be dealt with.