No government shutdown — for now

Bad news is that lawmakers once again opted for a short-term stopgap and avoided tackling the tougher issues
OCT 11, 2015
By  MFXFeeder
So Congress, in its infinite wisdom, avoided a government shutdown with an 11th-hour spending deal at the end of last month. That's the good news. The bad news is that lawmakers once again opted for a short-term stopgap and avoided tackling the tougher issues. As has become typical, the sticking point in the debate was not related to the government's functioning. It was an effort by conservative Republicans to remove funding for Planned Parenthood from the bill. After too much debate and too little constructive dialogue, the spending bill was passed and signed by President Barack Obama in time to keep the lights on in Washington. Until Dec. 11, anyway. But the country's fiscal house could fall into disarray much earlier than that, particularly after Majority Leader Kevin McCarthy, R.-Calif., backed out of the race to replace House Speaker John Boehner last week.

PARTY IN DISARRAY

As of press time, the Republican Party was in disarray, with no clear candidate to step in for Mr. Boehner, who, to his credit, said he would stay on until a new speaker is chosen. Originally he planned to retire at the end of October. (It was the late-September spending bill tussle that drove him to submit his resignation in the first place.) In just a couple of weeks, the federal highway fund will run dry unless Congress takes action. In the last six years, lawmakers have passed 34 stopgap highway funding bills. That's embarrassing. What good is a driverless car if the roads it travels on are in shambles? Maybe those working on that car should develop hovercraft instead. Then there's the debt limit. Treasury Secretary Jacob Lew has said measures used by the Treasury Department to hold off default would last at least through late October and probably longer. The default deadline is Nov. 5. In the past, Mr. Boehner has had to rely on Democratic votes to get a debt limit increase approved. During floor debate on the spending bill last month, Republican Rep. Tom Cole of Oklahoma called a government shutdown “the wrong thing to do.” He added that the American people “sent us here to get things done.” We couldn't agree more, but, alas, talk is cheap. Only when lawmakers match their lofty words with action — on a lasting highway bill, a sustainable debt limit deal and a long-term spending bill — will anyone be convinced that a government for the people is alive and well.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.