After the midterm elections, all eyes are on Congress to take up, and maybe pass, during the lame duck session the Retirement Enhancement and Savings Act (RESA), with a potential government shutdown having the potential to “roil the markets,” according to political analyst Andy Friedman.
If Congress does not pass appropriations legislation to fund the government by Dec. 7, “then on Dec. 8 the government will shut down,” Friedman of The Washington Update, said in his Monday analysis.
Greg Valliere, chief global strategist for Horizon Investments, adds that funding for several agencies, including Homeland Security, will expire if there isn’t a final budget deal by Dec. 8.
“A must-pass measure like this will attract two very controversial provisions: funding for a border wall with Mexico – which [President] Trump has insisted must pass or the government will be shut down – and a measure protecting [former FBI director] Robert Mueller from political interference, which could tie both houses in knots before Christmas,” Valliere said in his Tuesday Capitol Notes briefing.
Friedman points out that an appropriations bill requires 60 affirmative votes in the Senate to overcome a filibuster.
“Because the Republicans hold 51 seats in the existing Senate, some Democratic support is necessary for passage,” Friedman said, adding that Trump has demanded that the appropriations bill provide sufficient funds to begin constructing a wall on the U.S.-Mexican border.