US shutdown risk lingers despite House Speaker Mike Johnson’s compromise plan
- US House Speaker Mike Johnson has floated a two-step measure to avert a US government shutdown
- White House could threaten to veto bill, while disappointed conservatives may block plan in committee
A shutdown would threaten a downward US credit rating adjustment by Moody’s Investors Service, which has cited political dysfunction as a growing risk to bond investors. A federal funding lapse would also have political repercussions for both parties.
Congress has just days to pass a new stopgap bill before funding runs out after November 17. Johnson on Sunday suggested his plan would buy lawmakers time to negotiate individual spending bills, which fiscal conservatives have demanded.
“Washington’s spending addiction cannot be broken overnight,” he said on the social media site X. “But I will not allow end of year megabus spending packages to continue under my leadership.”
Johnson’s plan could still run aground in the face of combined resistance from Republican Party conservatives and the White House, which is irked by the lack of Ukraine aid in the plan and the fact it extends funding for some agencies to January 19 and others to February 2.