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US shutdown looms amid political stalemate over budget | US shutdown looms amid political stalemate over budget |
(about 1 hour later) | |
A US government shutdown looms as Democrat and Republican lawmakers remain unable to strike a deal on a new plan to continue funding its operation. | |
If they fail to reach an agreement by midnight (04:00 GMT Tuesday), the US government will be forced to close all non-essential federal services. | |
More than 700,000 staff could be sent home on unpaid leave, with no guarantee of back pay once the deadlock is over. | More than 700,000 staff could be sent home on unpaid leave, with no guarantee of back pay once the deadlock is over. |
The shutdown would be the first in the US for 17 years. | The shutdown would be the first in the US for 17 years. |
One of the key points of contention in the political stalemate has been President Barack Obama's healthcare law, popularly known as Obamacare. | |
Republicans in the House of Representatives - and their allies in the Senate - have demanded the law be repealed or stripped of funding as a condition for continuing to fund the government. | |
Major portions of the law, which passed in 2010 and has been validated by the US Supreme Court, are due to take effect on Tuesday. | |
Impact of shutdown | Impact of shutdown |
Early on Sunday, the Republican-run House of Representatives passed an amended version of the Senate spending bill that removed funding from the healthcare law and repealed a $29bn (£17.9bn) medical device tax, raising the chances of a shutdown. | |
US Senate Majority leader Harry Reid vowed that his Democrat-led chamber would reject the Republican bill. | |
"[On Monday], the Senate will do exactly what we said we would do and reject these measures," said Adam Jentleson, a spokesman for Mr Reid. | |
"At that point, Republicans will be faced with the same choice they have always faced: put the Senate's clean funding bill on the floor and let it pass with bipartisan votes, or force a Republican government shutdown." | "At that point, Republicans will be faced with the same choice they have always faced: put the Senate's clean funding bill on the floor and let it pass with bipartisan votes, or force a Republican government shutdown." |
Speaking for the president, White House spokesman Jay Carney said: "Any member of the Republican Party who votes for this bill is voting for a shutdown." The president, he said, would also veto the Republican bill. | Speaking for the president, White House spokesman Jay Carney said: "Any member of the Republican Party who votes for this bill is voting for a shutdown." The president, he said, would also veto the Republican bill. |
If the government does shut down on 1 October, national parks and Washington's Smithsonian museums would close, pension and veterans' benefit cheques would be delayed, and visa and passport applications would go unprocessed. | If the government does shut down on 1 October, national parks and Washington's Smithsonian museums would close, pension and veterans' benefit cheques would be delayed, and visa and passport applications would go unprocessed. |
Programmes deemed essential, such as air traffic control and food inspections, would continue. | Programmes deemed essential, such as air traffic control and food inspections, would continue. |
The defence department has advised employees that uniformed members of the military will continue on normal duty, but that large numbers of civilian workers will be told to stay home. | The defence department has advised employees that uniformed members of the military will continue on normal duty, but that large numbers of civilian workers will be told to stay home. |
Borrowing crisis | Borrowing crisis |
The looming shutdown is not the only crisis the US government is facing. | The looming shutdown is not the only crisis the US government is facing. |
The US government and Republicans are also at loggerheads over extending the government's borrowing limit. | The US government and Republicans are also at loggerheads over extending the government's borrowing limit. |
US Treasury Secretary Jack Lew has warned that the US will hit its debt ceiling by 17 October, leaving the government with half the money needed to pay its bills. | US Treasury Secretary Jack Lew has warned that the US will hit its debt ceiling by 17 October, leaving the government with half the money needed to pay its bills. |
Earlier this month, Mr Lew said that unless the US was allowed to extend its borrowing limit, the country would be left with about $30bn (£18.5bn) to meet its commitments, which on certain days can be as high as $60bn. | Earlier this month, Mr Lew said that unless the US was allowed to extend its borrowing limit, the country would be left with about $30bn (£18.5bn) to meet its commitments, which on certain days can be as high as $60bn. |
A failure to raise the limit could also result in the US government defaulting on its debt payments. | A failure to raise the limit could also result in the US government defaulting on its debt payments. |
President Obama has warned that "failure to meet this responsibility would be far more dangerous than a government shutdown". | President Obama has warned that "failure to meet this responsibility would be far more dangerous than a government shutdown". |
Washington faced a similar impasse over its debt ceiling in 2011. Republicans and the Democrats only reached a compromise on the day the government's ability to borrow money was due to run out. | Washington faced a similar impasse over its debt ceiling in 2011. Republicans and the Democrats only reached a compromise on the day the government's ability to borrow money was due to run out. |
That fight was resolved just hours before the country could have defaulted on its debt, but nevertheless led to ratings agency Standard & Poor's downgrading the US for the first time ever. | That fight was resolved just hours before the country could have defaulted on its debt, but nevertheless led to ratings agency Standard & Poor's downgrading the US for the first time ever. |
The 2011 compromise included a series of automatic budget cuts known as the "sequester" which came into effect earlier this year. | The 2011 compromise included a series of automatic budget cuts known as the "sequester" which came into effect earlier this year. |
The US government has not experienced a shutdown since 1995-96, when services were suspended for a record 21 days. | |
Republicans demanded then-President Bill Clinton agree to their version of a balanced budget. | |
After weeks of negotiation, they reached a compromise similar to what they discussed prior to the shutdown. |