Countdown to chaos averted: Congress narrowly avoids disaster, new date to know.
Congress Avoids Government Shutdown, but Deadline Looms
Congress narrowly escaped a government shutdown on Saturday night, just hours before the midnight deadline. However, this only provides a temporary delay, pushing the possibility of a shutdown by 45 days.
Now, Congress must reach a funding agreement by Nov. 16, giving them approximately six weeks to pass the annual appropriations bill and secure funding for the next fiscal year.
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The recently passed continuing resolution includes a $16 billion supplemental request for disaster relief and funds the government at fiscal 2023 levels. However, it excludes aid for Ukraine.
This new agreement is set to expire just before the holiday season, with Thanksgiving only eight days away and Christmas a little over a month later.
Impacts of Government Shutdowns
Government shutdowns can have unexpected effects on the country. National Parks, the National Zoo in Washington, D.C., and Smithsonian museums may close, although they will try to remain open using alternative funds. Government offices, such as the State, Justice, Agriculture, and Labor departments, will also be affected.
Military personnel may be required to work without pay during a shutdown. Airports may experience longer wait times due to reduced staffing at security checkpoints, potentially causing significant delays during holiday travel.
While Social Security payments will continue using funds from a different trust, welfare programs like the Supplemental Nutritional Assistance Program and the Special Supplemental Nutrition Program for Women, Infants, and Children may be affected. However, the SNAP program has enough funding for at least a month.
Pay and Work Status During Shutdown
Federal employees fall into two categories: excepted and furloughed. Furloughed employees are not paid and cannot work during the shutdown, including volunteering. Excepted employees, whose duties are considered essential, are required to work and usually receive pay, pending approval from Congress.
Some individuals, such as military members, may still be required to work without pay. Benefits are typically maintained during a furlough.
Vacation Time During Shutdown
Excepted employees who continue to work during a shutdown can request paid time off and take vacations if approved. Furloughed employees can travel during their furlough without it being counted against them upon their return. However, any approved paid time off would be canceled.
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While a shutdown remains a possibility next month, the House passed a resolution on Saturday to avoid it. The Senate followed suit with three hours to spare, and President Joe Biden signed the resolution just one hour before midnight.
“I strongly urge my Republican friends in Congress not to wait [on a new agreement],” Biden emphasized in a Sunday address. “Don’t waste time as you did all summer. Pass a yearlong budget agreement.”
How can a government shutdown affect businesses that rely on government contracts?
, may also close or operate with limited staff, causing delays in services such as passport processing, court cases, and food inspections. The Internal Revenue Service (IRS) may experience delays in processing tax returns, which could impact individuals and businesses awaiting refunds or dealing with tax-related issues.
Government contractors may also be affected by a shutdown, as payments for services may be delayed or suspended altogether. This can have a ripple effect on the economy, as businesses relying on government contracts may face financial strain or have to lay off workers.
Furthermore, a government shutdown can create uncertainty and negatively impact consumer confidence. This can lead to a decrease in consumer spending, which has implications for businesses across various industries. Financial markets may also react negatively to the uncertainty caused by a shutdown, potentially leading to stock market volatility and impacting investor sentiment.
In addition, government shutdowns can have social and emotional impacts on federal employees and their families. Federal workers may experience financial hardships, as they may be furloughed or forced to work without pay during a shutdown. This can create stress and anxiety, affecting their overall well-being.
Negotiations and the Path Forward
The push to avoid a government shutdown came amid negotiations over key policy issues and disagreements between Democrats and Republicans. One of the major sticking points has been the funding for a border wall along the U.S.-Mexico border, a priority for President Trump. Democrats have been steadfast in their opposition to funding the border wall.
The temporary funding agreement reached by Congress allows for more time to negotiate these contentious issues. Democrats hope to secure a deal that protects the Deferred Action for Childhood Arrivals (DACA) program, while Republicans aim to deliver on their promise of funding for the border wall. The next few weeks will be crucial in determining the fate of these policy matters and whether a larger funding agreement for the government can be reached.
The looming deadline of November 16 adds pressure on lawmakers to find common ground and avoid another government shutdown. The consequences of a shutdown would negatively impact the country and could further damage the confidence of the American people in their elected officials. It is essential for Congress to demonstrate bipartisanship and prioritize the needs of the American people in their negotiations.
In conclusion, while Congress averted a government shutdown for now, the deadline for a funding agreement is rapidly approaching. The potential consequences of a shutdown are significant and wide-ranging, impacting government services, the economy, and the well-being of federal employees. It is crucial for lawmakers to work together in the coming weeks and find a resolution to avoid another damaging shutdown. The American people deserve a government that can function effectively and responsibly for the benefit of all citizens.
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