Budget Passage Imperiled By Ouster of House Speaker As Deadline Approaches – Forbes Advisor

With the federal government’s annual budget still unresolved, House Republicans voted Tuesday to remove Speaker Kevin McCarthy from his position—a first in U.S. history. The development could well put the House GOP in gridlock at a time when Congress has roughly 40 days left to pass the 12 departmental appropriation bills needed to keep the government open.

McCarthy’s efforts to fund the government led to his downfall. A few days before his October 3 ouster, McCarthy successfully led a GOP stopgap bill, called a continuing resolution, through Congress mere hours before the government would have had to shut down.

That temporary resolution on September 30 did not sit well with outspoken right-wing members like Republican Rep. Matt Gaetz of Florida. Gaetz fueled existing conflict within the GOP by introducing the motion to vacate the speaker’s role. It passed in a 216-210 vote.

“Chaos is Speaker McCarthy. Chaos is somebody who we cannot trust with their word,” said Gaetz on the House floor before the vote, alluding to compromises McCarthy made in brokering the stopgap deal.

What Happens Next in a Broken House and Why it Matters

The House will need to elect another speaker. A floor vote is scheduled to start on October 11. Until then, Rep. Patrick McHenry, Republican of North Carolina, will serve as the acting speaker.

Lawmakers are taking a recess for the rest of the week. So far, the House has passed four of 12 appropriation bills; as of October 3, the Senate has passed none. McCarthy’s removal will likely slow down House efforts to pass the remaining appropriation bills within the roughly five weeks before the new November 17 shutdown deadline.

“Make no mistake: this needless and selfish action will stall and set back efforts,” said GOP Rep. Jason Smith of Missouri in a statement after the removal.

But the Republicans who voted to remove McCarthy from his seat argue the move will help get the ball rolling on the government’s fiscal budget.

“These last few days we’ve suspended the momentum that we established a week earlier, where we were bringing bills to the floor, voting on them, staying late at night, working hard,” Gaetz said. “That’s what the American people expect. It’s something Speaker McCarthy hasn’t delivered.”

What a Government Shutdown Means for Americans

Not every federal agency is totally dependent on the annual appropriations bills—Social Security and Medicare would remain operational, for example. Agencies that do require annual appropriations have plans in place in the event of a shutdown.

The military, for example, would have to furlough some employees, while those considered “essential”—such as active troops and law enforcement officers—would still have to work without pay until the government reopens.

Here are some ways a shutdown would affect many Americans:

• IRS slowdown: If IRS employees are furloughed, the processing of tax returns could be delayed, adding to the existing backlog. A shutdown could also impair the IRS’s ability to field taxpayer questions and resolve compliance concerns.
• More snags at airports: The airports would remain open since TSA agents, air traffic controllers and other employees of the Federal Aviation Administration are considered essential. But they wouldn’t get paid for their work until the shutdown is lifted. This has led to delays for travelers in previous shutdowns.
• Newly issued flood insurance halted: The National Flood Insurance Program, or NFIP separately required re-authorization from Congress by Sept. 30 but was temporarily extended through the larger 45-day stopgap bill. If it’s not reauthorized, the NFIP cannot issue new flood policies, though it can maintain existing policies and claims. If the fund expires, it could stall real estate transactions that require flood insurance.