US House passes crucial spending bill to avert government shutdown

The U.S. House of Representatives has approved a temporary spending bill, steering the country away from a potential government shutdown. The legislation, which extends government funding through mid-January, garnered widespread support from lawmakers across party lines.

According to Reuters, this crucial development now shifts the focus to the Senate, where leaders from both Democratic and Republican factions have expressed their backing for the bill. The passing of the 336-95 vote marks a significant victory for House Speaker Mike Johnson, who faced challenges from some Republicans in the first consequential vote since assuming the position less than three weeks ago.

The Senate, alongside the Republican-controlled House, must swiftly enact legislation that President Joe Biden can sign into law before the current funding for federal agencies expires at midnight on Friday.

Senate Majority Leader Chuck Schumer, a Democrat, expressed satisfaction with the strong bipartisan vote in the House and committed to working with his Republican counterpart, Mitch McConnell, to pass the bill as expeditiously as possible. The bill's passage with 209 Democratic and 127 Republican votes reflects a collective effort to navigate fiscal challenges and ensure the continuity of government functions.

The temporary spending bill, designed to extend government funding at current levels into 2024, offers a reprieve for lawmakers to formulate detailed spending bills covering diverse sectors, from the military to scientific research. While the bill received support from both Democrats and a significant number of Republicans, some conservative Republicans voiced frustration over its omission of steep spending cuts and desired border-security measures.

Despite these concerns, the bill passed with a majority, signalling a willingness among lawmakers to prioritise averting a shutdown and ensuring the stability of critical government functions. Representative Mike Garcia, a Republican, acknowledged the imperfections of the bill. "This isn't ideal, but a shutdown is a far worse world to be in," Reuters quoted her as saying.

The bill, crafted by House Speaker Mike Johnson, extends funding for various essential sectors, including military construction, veterans benefits, transportation, housing, urban development, agriculture, the Food and Drug Administration, and energy and water programs through January 19.

However, funding for all other federal operations, including defence, would expire on February 2. The strategic timing of the extension provides lawmakers with a window to deliberate and formulate detailed spending plans, contributing to a more stable and predictable fiscal landscape.

The ongoing fiscal challenges and political gridlock have prompted heightened scrutiny, with Moody's lowering its credit rating outlook on the U.S. to "negative," citing concerns about high-interest rates impacting borrowing costs.

(With inputs from Reuters)

WATCH WION LIVE HERE