The US Congress Adopts a Short-Term Budget to Avoid a Prolonged Shutdown
The American administration narrowly averted a new government shutdown. A close vote delays the deadline without resolving the underlying issues. The American economy breathes, but remains unstable.
In brief
- The US Congress adopts a temporary budget to avoid a complete shutdown of the federal economy.
- DHS funding remains pending, signaling a new imminent political confrontation.
A temporary budget to save the economy from deadlock
On Tuesday, February 3, the House of Representatives passed a $1.2 trillion bill. It was promptly signed by Donald Trump. This decision ends a three-day shutdown that paralyzed several public services.
The measure allows funding for most federal agencies until September 30. One exception: the Department of Homeland Security (DHS), whose activities receive provisional funding for two weeks.
The Congress remained divided until the last minute. The vote was tight at 217 to 214, reflecting high political tension. This maneuver avoids a prolonged paralysis that would have deeply affected the country’s economy. However, the shadow of a recession looms if a new agreement is not reached by February 13.
The American economy facing persistent political instability
Beyond the simple vote, the episode reveals the structural fragility of the American budgetary system. The specter of the deficit remains omnipresent. The Trump administration, which wanted to cut several public finance items, had to retreat on some fronts.
The final agreement thus includes a cut of $11.6 billion from the IRS modernization funds. This weakens its digital transformation strategy.
Federal employees who were furloughed will receive retroactive pay, thus limiting the direct impact on domestic consumption. Nevertheless, this measure does not solve structural problems. The next battle over DHS funding could reignite tensions. Especially since nearly 80% of this agency’s budget concerns non-immigration areas such as FEMA or TSA.
The coming weeks therefore promise to be decisive. A new budget confrontation could plunge the United States economy back into uncertainty. The reprieve does not guarantee lasting stability. To be continued…
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My name is Ariela, and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago, but it is a universe that greatly interests me. The topics covered on the platform allow me to learn more. A singer in my spare time, I also cultivate a great passion for music and reading (and animals!)
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