Extensive Efforts to Avert a US Government Shutdown Before Midnight

US House Speaker Mike Johnson will attempt to pass what is known as a “temporary plan” later on Friday, involving a funding bill for the federal government at current debt levels. This plan includes certain provisions aimed at garnering public support and avoiding the US from suspending its debt ceiling in order to prevent a government shutdown.

The United States faces the risk of a government shutdown if American lawmakers fail to reach an agreement on a funding bill for government operations before midnight. The failure of the Republicans, who control the US House of Representatives, to pass a bill proposed by US President-elect Donald Trump just one day prior raises concerns about the significant challenges that the incoming administration’s legislative agenda may face in transforming proposed legislation into enacted laws.

Financial market investors have been closely monitoring developments related to the US fiscal situation since Thursday’s session, amid concerns over the country’s proximity to a government shutdown. Such a shutdown could disrupt the overall performance of the US economy and cause damage to US assets traded in the markets.

News headlines have indicated that US President-elect Donald Trump is making efforts to avoid a government shutdown, urging Republicans in the US Congress to raise or eliminate the debt ceiling.

Trump team and US House Speaker Mike Johnson are in discussions to reach a temporary plan, including disaster relief, aimed at raising or “eliminating the debt ceiling for two years.”