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A possible government shutdown looms as the House of Representatives returned to session this week with little progress in negotiations to pass a budget bill.
The federal budget will expire on September 30, leaving only a few business days for both chambers of Congress to approve the 12 appropriations bills for the 2023-2024 fiscal year.
The House has just 11 business days to approve a short-term federal funding extension called a continuing resolution, to give lawmakers more time to discuss the details of a federal spending bill for the fiscal year.
What happens in Congress
A group of far-right House Freedom Caucus lawmakers have drawn hard lines even before the House returns to session, openly threatening a government shutdown if a continuing resolution does not include deep spending cuts and other demands, such as a trial. political to President Joe Biden as a condition of passing a spending bill.
The House Freedom Caucus members’ demands have virtually no chance of passing the Democratic-controlled Senate.
Senate Democratic leader Chuck Schumer warned lawmakers last week that Negotiations should be carried out in good faith and on a bipartisan basis.
What is a government shutdown?
Many federal government agencies and programs depend on annual funding appropriations approved by Congress.
Each year, Congress must pass and the president must sign budget legislation for the next fiscal year, which consists of 12 appropriations bills, one for each Appropriations subcommittee.
Congress has not yet enacted any of the 12 fiscal year 2024 bills that make up the discretionary spending budget.
What is the impact of a government shutdown?
A shutdown in early October, when fiscal year 2024 begins, would affect all federal activities covered by discretionary appropriations. unlike the most recent fiscal year 2019 shutdown that began in late 2018 and extended into early 2019 and affected only departments and agencies covered by the seven appropriations bills that Congress had not yet enacted, according to is explained in a document published by The Committee for a Responsible Federal Budget, a nonpartisan, nonprofit organization committed to educating the public on issues with a significant impact on fiscal policy.
Hundreds of thousands of federal workers would be suspended without pay and a wide range of services could be affected, from passport applications to garbage collection to public services in national parks.
Other workers considered “essential” would remain on the job, although they would also not receive pay.
Services such as mail delivery, tax collection, and U.S. debt payments would continue.
In previous closures, border protection, hospital medical care, air traffic control, law enforcement and power grid maintenance were among services classified as essential, while some legislative and judicial staff have also been been largely protected.
Mandatory spending not subject to annual allocations also continues, such as Social Security, Medicare and Medicaid.
Other examples of continuing activities are those funded by permanent user fees that are not subject to appropriations, such as immigration services funded by visa fees.
Government shutdowns that last only a few days would have little impact, particularly if they occur over a weekend, but The overall economy could take a hit if federal employees start missing their paychecks after two weeks.
Keep reading:
– The White House called on Congress to pass a short-term spending bill to avoid a government shutdown
– Congress approves budget extension and avoids government shutdown for a week
– Is a government shutdown coming due to lack of budget?