Will Avoiding Gov. Shutdown Need Another Congressional Deal?

The ongoing debate on funding this year’s federal obligations, including the US debt ceiling and top line spending cuts, is not over. Some economists believe that the top line figures are not satisfactory and lawmakers are still not satisfied with spending priorities.

The current political circumstances in Washington are not conducive to discussing fiscal challenges, as Social Security and Medicare are currently the third rail in the lockbox. Many Americans are frustrated with the current spending level and take it out on the 12.5% of the budget. However, they believe that cutting spending is important and that the debate should continue.

Shutting down the federal government is not a winning policy, as it leads to more spending rather than less spending. Some members of the House are suggesting that the government should shut down without security or funding.

If the House doesn’t get what it wants in terms of border reform, they would like government funding for a time to cease. Negotiations between the White House and the Senate are already trying to iron out a border security deal as part of this supplemental funding request.