DealBook Briefing: Brace for Another Government Shutdown

Discussion in 'Wall St. News' started by ajacobson, Feb 11, 2019.

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    DealBook Briefing: Brace for Another Government Shutdown

    CreditAFP/Getty Images

    Failed border talks foreshadow another shutdown
    Bipartisan negotiations to forge a border security deal broke down yesterday, potentially setting up the federal government for another shutdown ahead of a Friday deadline.

    What happened? “The impasse appears to center on Democratic demands for a limit on the number of unauthorized immigrants already in the country who could be detained by Immigration and Customs Enforcement officers, according to aides familiar with the talks,” according to the NYT. Republicans wanted an exception to the cap for criminals; Democrats said a proposed 16,500-bed cap left more than enough room for them.

    What’s at stake? The last shutdown, the longest in U.S. history, cost the American economy $11 billion and tanked President Trump’s political standing with the public. Another shutdown could cause more economic harm, hitting the I.R.S. just as tax season starts.

    What’s next? Lawmakers could pass another short-term spending bill, though many are reluctant to punt on a final budget agreement again. Meanwhile, Mr. Trump is preparing to hold a rally for supporters in El Paso. (Many in the city aren’t happy with that.) But he really has only two choices, according to Axios: shut down the government or declare a national emergency to get border wall money, and “both options are horrible.”