US investments in research and development are likely to drop — even if the worst-case scenario is avoided.
US President Joe Biden has been talking with the speaker for the House of Representatives, Kevin McCarthy, about a way forward in debt-ceiling negotiations.The US government could run out of money as early as next week if lawmakers in Washington DC fail to reach an agreement to increase the federal debt limit.
The impasse between President Joe Biden, a Democrat, and Republicans hinges on the ‘debt ceiling’, a congressionally imposed limit on how much money the US government can raise by issuing bonds and using other financial instruments to cover its spending . As it stands, US Treasury Secretary Janet Yellen has declared 1 June a “hard deadline”, saying that the United States could default on its debt payments if the ceiling is not raised by then.
Republicans, who control the US House of Representatives, are using the approaching deadline as leverage to cut spending. In the House, they have passed a bill proposing massive budget cuts that could limit government spending across the board over the coming decade, in exchange for raising the debt ceiling. The Biden administration and Democrats have thus far held off on making an agreement.
No one knows precisely how the political brinkmanship will play out, but history suggests that the impacts — including for US science — could be felt for years to come.For many in Washington, the current showdown feels like a replay of events that occurred during former president Barack Obama’s first term in 2011, when Republicans used a looming debt-ceiling deadline to try to limit federal spending over nearly a decade.
“That is a pretty sizeable spending shortfall,” Hourihan says, and it would have been worse had lawmakers stuck to their original promises.The spending cuts now being sought by Republicans are even more severe: the bill passed last month by lawmakers in the House would reduce discretionary spending by more than $3.5 trillion over the coming decade.
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