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Home » Washington has averted a government shutdown
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Washington has averted a government shutdown

adminBy adminJuly 1, 2007No Comments5 Mins Read
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Washington averted a government shutdown after an up-and-down week saw House Republicans offering a united front and resistant Democrats cornered.

The key moment on Friday was an early evening procedural vote in the US Senate that ended debate on a continuing resolution (CR). The final 62-38 vote included 10 Senate Democratic votes in the affirmative. Their support pushed the count above the required 60-vote threshold.

Democratic-caucusing Sens. Chuck Schumer, Catherine Cortez Masto, Dick Durbin, John Fetterman, Kirsten Gillibrand, Maggie Hassan, Angus King, Gary Peters, Brian Schatz, and Jeanne Shaheen all voted yes. Republican Sen. Rand Paul voted no in what was otherwise a party-line vote.

A final vote then followed later, shortly after 6 p.m., and passed comfortably.

“The CR is a bad bill, but as bad as the CR is, I believe allowing Donald Trump to take even much more power via a government shutdown is a far worse option,” said Senate Democratic leader Chuck Schumer hours before the vote as he announced he would be voting yes.

The spending plan’s passage set off another round of Democratic Party agita and soul-searching, with Schumer and other Senate Democrats saying they had no choice but to help push through the 99-page bill written by Republicans.

It will keep the government open until Sept. 30 with GOP priorities attached and little in the way of concessions to Democrats.

WASHINGTON, DC - MARCH 13: Senate Minority Leader Chuck Schumer (D-NY) leaves the Democratic caucus lunch at the U.S. Capitol on March 13, 2025 in Washington, DC. On Wednesday Senate Democrats, not in line with the continuing resolution passed by House Republicans providing a six-month funding extension to avert a government shutdown, proposed an alternate plan that would fund the government in the short term through April 11. (Photo by Kayla Bartkowski/Getty Images)
Senate Minority Leader Chuck Schumer after a Democratic caucus lunch at the U.S. Capitol on March 13. (Kayla Bartkowski/Getty Images) · Kayla Bartkowski via Getty Images

The bill is set to offer increased spending on issues like defense and immigration and cuts elsewhere to other programs.

The changes overall are a proverbial drop in the bucket of America’s fiscal situation given the country has carried multitrillion-dollar budget deficits in recent years.

“What we’re leaving in terms of debt, what the next generation will be inheriting, and at this point it’s not just an economic risk, I think it’s a huge national security risk,” Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said Friday in a new episode of Yahoo Finance’s Capitol Gains podcast.

Her group recently pointed out that the US government has already run up $1.1 trillion in new deficit spending in just the first five months of the current fiscal year.

The group also found that this week’s bill will likely have the net fiscal impact of adding $7 billion to the debt in the years ahead, largely because cuts to the IRS will allow more people to avoid paying taxes and drive down collections.

It also doesn’t help that this week’s fight came during a climate of deep economic unease. Stock sell-offs have put markets into a correction at the same time as firms slash S&P 500 year-end targets. Trump’s trade war also continues unabated and, so far, the president appears unconcerned about its impact on the economy.

Story Continues

Friday’s votes capped a week of standoffs on Capitol Hill that began with observers estimating a one-in-three chance of a shutdown as House Republicans planned to muscle through their bill with slim margins and plenty of initial skepticism that they could succeed.

Even Trump at the time tossed up his hands and told reporters Sunday about a shutdown: “It could happen … you never know.”

But House Speaker Mike Johnson’s gambit worked, with a 217 to 213 vote that advanced the stopgap measure and forced Democrats’ hand.

WASHINGTON, DC  March 12, 2025:

Speaker of the US House of Rep. Mike Johnson (R-LA) on Capitol Hill in Washington, DC on Wednesday March 12, 2025.


(Photo by Demetrius Freeman/The Washington Post via Getty Images)
Speaker of the US House of Rep. Mike Johnson on Capitol Hill on March 12. (Demetrius Freeman/The Washington Post via Getty Images) · The Washington Post via Getty Images

Speaker Johnson saw only one member of his own party, Rep. Thomas Massie of Kentucky, oppose the bill and one Democrat, Rep. Jared Golden of Maine, move to support the GOP plan.

The path to passage in the Senate was always more complicated, and Democratic Leader Schumer briefly spiked shutdown odds midweek when he signaled that Democrats would be opposed.

“Our caucus is unified,” Schumer said at the time, promising to block the plan and pushing a one-month bill instead. But then the Democratic leader quickly saw his Senate caucus split as many voted no, with others, including Schumer, voting yes in an acknowledgment of the political reality.

For his part, on Friday, Trump offered a perhaps facetious, “Congratulations to Chuck Schumer for doing the right thing.” He then inadvertently reminded wary markets that plenty of opportunities for government dysfunction lie ahead.

“The big Tax Cuts, L.A. fire fix, Debt Ceiling Bill, and so much more, is coming,” the president wrote.

This post has been updated with additional developments.

Ben Werschkul is Washington correspondent for Yahoo Finance.

Every Friday, Yahoo Finance’s Rick Newman and Ben Werschkul bring you a unique look at how U.S. policy and government affects your bottom line on Capitol Gains. Watch or listen to Capitol Gains on Apple Podcasts, Spotify, or wherever you find your favorite podcasts.

Click here for political news related to business and money policies that will shape tomorrow’s stock prices

Read the latest financial and business news from Yahoo Finance



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