Tuesday, 02 January 2024 12:17 GMT

US Senate Approves Plan to End Government Shutdown


(MENAFN) The US Senate has endorsed a cross-party agreement aimed at concluding the federal government shutdown, overcoming a significant obstacle after more than five weeks of political impasse that left hundreds of thousands of workers furloughed, disrupted essential public services, and unsettled the broader economy.

In an initial procedural test vote late Sunday night – the first step in a sequence of legislative actions – the Senate approved advancing the compromise bill with a 60-40 margin.

Senate Majority Leader John Thune remarked that it “remains to be seen” when lawmakers will vote on the final passage of the legislation to reopen the government, though he expressed optimism it could pass early this week.

The deal emerged from intense negotiations among a small team of Republican and Democratic lawmakers, who faced growing pressure from business executives, state governors, and frustrated federal employees.

The proposed bill guarantees back pay for furloughed staff, maintains funding for essential programs, and incorporates limited policy concessions aimed at providing each party with a political victory.

The development comes amid mounting concerns over the shutdown’s economic repercussions.

Earlier in the week, White House economic adviser Kevin Hassett warned that the effects were “far worse” than previously estimated and could reduce fourth-quarter GDP growth by half.

Beyond domestic consequences, the political stalemate in Washington has postponed more than $5 billion in arms sales to European NATO allies – including AMRAAM air-to-air missiles, HIMARS systems, and other weaponry often transferred to Ukraine.

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