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Senate Faces Standoff Over Government Funding as Shutdown Looms

With a Friday deadline, Democrats and Republicans clash over competing proposals to avert a government shutdown.

  • The House passed a six-month continuing resolution (CR) to fund the government, but it faces opposition in the Senate where 60 votes are required to advance it.
  • Senate Democrats are pushing for a 30-day funding extension to allow more time for negotiations, but Republicans have rejected the proposal.
  • If no agreement is reached by Friday at midnight, nonessential government services will pause, federal workers will be furloughed, and pay will be delayed.
  • Economic experts warn that a prolonged shutdown could exacerbate existing economic uncertainty, potentially impacting consumer confidence and delaying critical economic data releases.
  • Both parties are working to avoid blame for a potential shutdown, with Democrats emphasizing the lack of bipartisan input on the GOP bill and Republicans framing the impasse as Democratic obstruction.
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