Government Funding Lapse Likely

A looming federal government shutdown beginning October 1 continues to occupy the lion share of attention here in Washington.

ABMA attended several events for Members of Congress this week where the topic of a shutdown inevitably was raised. Currently, most agree that a government funding lapse of some duration is likely. We are hearing that a two-week shutdown beginning October 1 is the likeliest scenario, but the situation is fluid.

House leadership, working with members of the House Freedom Caucus and Problem Solvers Caucus, have fashioned a one month Continuing Resolution that would fund the government roughly through October. However, the budget cuts that are being discussed as part of this measure would not pass the Senate.

One scenario that is emerging is that the Senate passes a relatively “clean” Continuing Resolution (CR) next week on a bipartisan basis to extend government funding for 6 weeks or a little longer to allow for appropriators to complete their work on the 12 appropriations bills.

For the House to pass the measure, Speaker McCarthy would have to reach across the aisle for Democrat support; a process he will delay until 11th hour to avoid triggering a “motion to vacate” his position by Freedom Caucus members.

The bottom line is, there are a lot of moving parts and speculation at this point. But, with only a little over a week to go and no clear path forward, a shutdown is starting to look inevitable.

Credit Card Competition Act Sponsors Ramp up Efforts

On Wednesday, Senate Minority Whip Richard Durbin (who also Chairs the Senate Judiciary Committee), along with Senators Roger Marshall (R-KS) and Peter Welch (D-VT) held a press conference to urge the Senate to pass their Credit Card Competition Act. The legislation, which is also cosponsored by Senator J.D. Vance (R-OH), directs the Federal Reserve to ensure that the largest credit-issuing banks offer at least two networks over which electronic payments may be processed. Read Senator Durbin’s press release here.

ABMA issued a call to action late last week when we learned that the legislation—S. 1838—may come up for a Senate floor vote in the form of an amendment. So far that has not materialized, but we are close to the action and will keep you apprised of developments.