(Washington) A Biden administration official warned Monday that a federal government shutdown, or “shutdown,” would wreak havoc on the U.S. economy if Republicans and Democrats in Congress do not agree on the government budget, object of a political battle.
“We haven’t seen a shutdown for a while. I hope we don’t have one now, because one of the things that encourages all of us is the fact that the U.S. economy is doing much better than many people expected,” the assistant secretary of state said. Treasure, Wally Adeyemo, speaking at the Economic Club of New York.
The “shutdown” differs from the default, which threatened the American economy in the spring, and was linked to the debt ceiling, which Congress had to raise.
Expenditures frozen in the event of a “shutdown” are narrower than in the event of non-payment, details a memo from the Committee for a Responsible Federal Budget, a bi-partisan organization.
In the event of a “shutdown”, for example, civil servants would not be paid temporarily, certain health systems could be affected, as well as air transport, with air traffic controllers not receiving a salary.
The last paralysis of the federal administration dates back to 2018. Around 850,000 civil servants were placed on partial unemployment, according to the committee.
“The last thing we need is the difficulties of a shutdown,” Mr. Adeyemo warned.
The next fiscal year begins on 1er October, but the elected representatives of the Congress, who must vote on the financing, have not reached any agreement at this stage.
The ball is, he stressed, in the camp of the elected Republicans in the House of Representatives.
“The Democrats in the Senate (and) the House and the Republicans in the Senate all agree on the need to respect the terms of the agreement that we just reached this summer,” he said.
This agreement, which made it possible to avoid payment default, suspends the public debt ceiling of the United States until January 2025, and sets budgetary objectives, including in particular a limitation of spending.
“Our goal is really to try to get to a point where Congress agrees to continue funding the government, because the last thing we need is headlines about the government shutting down,” he said. hammered Wally Adeyemo.