Last week, the impending government shutdown in the USA weighed on global stock markets. This now appears to have been averted – for now.
On Sunday night, the US Congress passed the transition financing and thereby averted the impending standstill of government business. After a majority in the House of Representatives voted for the text, 88 members in the Senate also waved the text through. Nine senators voted against it. The financing is therefore initially secured for 45 days.
No aid for Ukraine in the interim budget
Further aid for Ukraine is not included. A dispute had previously broken out over this position. Republican hardliners stood against Democrats. Only the removal of the planned six billion US dollars in new aid from the law ensured an agreement – albeit under protest from some Democrats. US President Joe Biden had previously asked for 24 billion US dollars for Ukraine. “We cannot allow American support for Ukraine to be interrupted under any circumstances,” Biden said. He signed the law shortly after the vote.
What happens during a shutdown
In the event of a shutdown, millions of employees and military personnel will no longer be able to be paid their salaries. However, many ministries and authorities have emergency plans for this eventuality. For example, it can be assumed that military members would still continue to work. The Federal Police FBI and the NSA secret service are also exempt from the closure. In the event of a “shutdown”, offices and authorities remain closed, as do federally owned museums and other leisure facilities. The longest “shutdown” in the country’s history occurred at the turn of the year 2018/2019. Because of the dispute over the then-President Donald Trump The wall demanded by parts of the government in the USA stood still for over five weeks.
Editorial team finanzen.net / dpa-AFX