|Update on Government Funding for Fiscal Year 2022 (Thursday)|
SUMMARY: With government funding set to expire tomorrow night, the Senate announced plans to vote on a Continuing Resolution on Thursday that would fund agencies through December 3, but not address the debt limit, which is now predicted to be reached on October 18. The House plans to vote on the CR after Senate passage and the President is expected to sign it, preventing a government shutdown.
With government funding set to expire with the beginning of the new fiscal year on Friday, October 1, the Senate announced plans to vote tomorrow on a Continuing Resolution (CR) that would extend funding until December 3, but not address the debt limit due to opposition from Senate Republicans, who blocked consideration of legislation to suspend the debt limit twice this week. The House is expected to vote on the new CR tomorrow as well and the President is expected to sign the bill, averting a government shutdown and providing additional time for congressional leaders to reach an agreement on full-year funding. As you may recall, the House has passed 9 of the 12 appropriations bills and the Senate has not passed any.
Yesterday, Treasury Secretary Janet Yellen informed Congress that the federal government will run out of borrowing authority on October 18, leaving less than three weeks for Congress to act before the country will be in default, which every national leader has said would be an economic and financial catastrophe. Lifting or suspending the debt limit does not authorize new spending commitments, but rather allows the government to finance existing legal obligations, including Social Security and Medicare benefits, military salaries, interest on the national debt, tax refunds, and other payments. Without an agreement to either raise or suspend the debt ceiling, the Treasury will be unable to continue paying the nation’s bills and the federal government will have to at least temporarily default on many of its obligations. Today the House passed a stand-alone bill to suspend the debt limit through December 16, 2022. However, the chances for passage in the Senate remain uncertain.
NTEU will continue to urge Congress and the White House to act quickly to fully fund federal agencies and ensure the full faith and credit of the United States. I will keep you updated on these developments. For more information click here.
Anthony M. Reardon