House Republican leaders unveiled a bipartisan spending deal that would extend government funding for three more months, aiming to prevent a partial government shutdown at the end of the month, according to the Wall Street Journal.
Driving The News: The proposal, crafted to avoid a looming government shutdown, would keep federal agencies funded through Dec. 20. It includes an additional $231 million for the Secret Service to bolster protection for presidential candidates during the final stretch of the 2024 election season.
- The current fiscal year ends on Sept. 30, leaving Congress with little time to pass an extension to avoid a shutdown.
Why It Matters: Without this deal, the government faces a partial shutdown at the end of the month. The stopgap measure would give Congress more time to negotiate longer-term funding levels for federal agencies.
- The extra Secret Service funding is a key provision, as the agency ramps up its protection efforts during the high-stakes election season which demands additional resources, especially after the two attempts on former President Donald Trump’s life.
What They’re Saying: Jake Sherman of Punchbowl News noted on Twitter that Republicans added the stopgap bill to the House Rules Committee’s Monday meeting, “They want to pass this bill under a rule, which would allow for a simple majority vote. And it would also push back on the talking point that leadership is rushing the bill through under suspension. Getting it through Rules will be interesting.”
Impact on Housing: A government shutdown can significantly disrupt mortgage markets by stalling government-backed loan programs like FHA, USDA, and VA, delaying approvals and leaving potential homebuyers in limbo. Beyond that, a shutdown erodes investor confidence in U.S. government debt, which can lead to a rise in interest rates. As uncertainty increases, investors often pull back or sell off U.S. Treasury securities, pushing up borrowing costs for everyone.
