US Govt Shutdown Averted After White House, Congress Agree on Informal Deal

Trump's administration and White House Speaker Nancy Pelosi agreed to an informal deal in order to avoid a devastating government shutdown that would have occurred at the end of the month. On Thursday, two congressional sources said that the risk is a result of the federal government scheduled to run out of funds.

Government shutdown imminent

On Tuesday, Treasury Secretary Steven Mnuchin came to an agreement with Pelosi during a phone conversation about the stalled efforts of both sides of politicians to pass a new COVID-19 relief package.

According to USA Today, the informal deal aims to extend government funding at the same levels they are operating at right now and would allow politicians of both sides to avoid a series of high-risk negotiations before the November elections start.

While more details about the deal have not been made available to the public, several staff-level discussions are scheduled to begin very soon. The congressional sources added that officials had not made a decision on how long they would want to make the bill last.

Despite Democrats and Trump's administration resuming talks about another stimulus relief bill that aims to assist Americans and businesses affected by the coronavirus pandemic, experts say it is unclear if stimulus relief would be added to the list of inclusions to the government's spending bill.

One source said that neither Pelosi nor Mnuchin openly discussed the possibility and did not rule it out.

While the agreement may put the minds of Americans at ease about a government shutdown, it does little to solve the problem of giving out financial support to United States citizens and establishments hampered by the economic effects of the COVID-19 virus.

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Senate Minority Leader Chuck Schumer, Pelosi, Mnuchin, and Chief of Staff Mark Meadows have been negotiating for weeks about what to include in the next stimulus relief package. The officials have discussed the nearly $3.4 trillion plan and Senate Majority Leader Mitch McConnell's $1.1 trillion package.

Both proposals aim to distribute $1,200 direct payments to Americans who are struggling amid the coronavirus pandemic. They also set aside billions of funding to support schools reopening and plans to help businesses from going bankrupt.

An avoided catastrophe

Government funding was set to expire on September 30, a month before the November elections. The threat meant that if Congress did not agree on legislation, a shutdown was inevitable, as reported by Fox News.

At the end of 2018, United States President Donald Trump said he wanted more funding to be able to build his controversial border wall between the US and Mexico. The move caused an immediate backlash and resulted in an unprecedented 35-day government shutdown.

Democrats have proposed to provide government funding that would last until early next year, expecting a Biden Administration after the elections. Republicans, on the other hand, want a shorter bill which would last until mid-December.

Next week, the Senate will return from its recess and possibly marks the last opportunity for Congress to decide on a coronavirus relief bill while also making sure government funding is sufficient.

Republicans revealed that they plan to vote on a smaller coronavirus bill next week. However, the legislation is likely to face Democratic opponents who argue that Americans need more funding to keep local governments and businesses running.