White House telling federal agencies on Thursday to begin preparing for a government shutdown;

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Officials said the request was in line with traditional procedures ahead of a potential shutdown, but were confident Congress had enough time to prevent a shutdown.

“We fully expect Congress to work in a bipartisan fashion to keep our government open, get disaster relief to the Americans who need it, and avoid a catastrophic default, especially as we continue to confront the pandemic and power an economic recovery,” said White House budget office spokesperson Abdullah Hasan in an email. “In the meantime, prudent management requires that the government plan for the possibility of a lapse in funding.”

House Democrats approved a bill Wednesday that would simultaneously fund the government until Dec. 3, and suspend the U.S. borrowing limit. Without raising the limit, the U.S. could default on its loans warned Treasury Secretary Janet Yellen.

The bill, however, is expected to be killed in the Senate, where it has strong Republican opposition. While both parties have said they are committed to avoiding a government shutdown, Republicans refuse to vote for a bill that raises the debt ceiling, hoping to make the Democrats go at it alone. Democrats, in turn, said they were committed to passing the limit through a bipartisan vote.

Republican opposition to the bill is rooted in the party’s hostility toward the $3.5 trillion spending bill Democrats are hoping to pass through a simple majority vote.

SOURCE: BARRONS