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House Republicans Pivot Strategy in a Race Against Shutdown Clock

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Amid looming threats of the fourth government shutdown in a decade, U.S. House Republicans are shifting tactics in a desperate bid to prevent the imminent shutdown before the Sept. 30 deadline. The Republicans, who have yet to successfully move forward with legislation ensuring the government's operation for the fiscal year starting Oct. 1, are now curating four distinct spending bills. These bills, mainly reflecting the substantial cuts desired by the party's conservative wing, are anticipated to be vetoed in the Democratic-majority Senate, especially since they significantly undercut the spending thresholds set in an agreement with President Joe Biden earlier. Notably, Biden has already signaled intentions to veto two of them.

Speaker Kevin McCarthy suggests that the House might cast their votes on these bills come Tuesday. Should these spending bills be approved, it might position the Republicans favorably in their Senate negotiations. McCarthy's strategy envisions using this momentum to usher in a provisional funding bill to maintain government operations until Oct. 31. However, this has garnered opposition from staunch right-wing Republicans. McCarthy, emphasizing the perils of a shutdown, believes that these proceedings should spotlight the implementation of fresh immigration controls, particularly at the border.

Congress's inability to find common ground on spending could lead to a halt in several government functions, ranging from financial inspections to civil lawsuits. On Friday, the House Rules Committee convened to evaluate the quartet of bills, which are designed to finance sectors such as the military, homeland security, agricultural initiatives, the State Department, and other international endeavors for the forthcoming fiscal year. The House, where Republicans hold a slender majority, has recently witnessed the failure of the $886 billion defense expenditure bill due to opposition from both sides of the aisle.

This political turbulence has caught the attention of former President Donald Trump, a strong contender for the 2024 Republican presidential nomination, who appears to be in favor of the shutdown. However, there remains hope to avert this crisis. Senate Majority Leader Chuck Schumer has arranged a procedural vote for Tuesday to pave the way for an interim funding bill. If successful, the ball will be in McCarthy's court, forcing him to decide its fate in the House, a move that could potentially incite dissent among his right-wing supporters, threatening his position as Speaker and adding to the prevailing disorder in the House.

About the Author

David Love is an editor at Quiver Quantitative, with a focus on global markets and breaking news. Prior to joining Quiver, David was the CEO of Winter Haven Capital.

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