Countdown to possible US Government shut down

The U.S. government may face its fourth shutdown in ten years if an agreement isn't reached by the end of this week. A bipartisan Senate bill that aims to fund the government until mid-November has been turned down by House Republicans. If no agreement is reached, hundreds of thousands of federal workers might lose their jobs temporarily, and many services would be forced to pause.

While the Senate has shown support for a funding bill, including $6 billion each for domestic disaster aid and help to Ukraine, the House Republicans oppose it, asking to put more focus on the U.S.-Mexico border issues. 

The House Republicans, who hold a slim majority, have yet to propose a full-year funding plan. House Speaker Kevin McCarthy has faced opposition from within his party for a previously agreed deal with President Biden, with some demanding even more budget cuts.

Moody's has warned that such uncertainties could damage the U.S.'s credit standing, potentially increasing borrowing costs. At this moment, both parties are aware of the negative impacts of a shutdown. Some senators have even suggested a bill requiring senators to stay nearby during a shutdown to address the issue, or face arrest.