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The Wall Street Publication > Blog > Politics > Closures, Social Safety checks, furloughs: What a shutdown may imply
Politics

Closures, Social Safety checks, furloughs: What a shutdown may imply

Editorial Board Published December 19, 2024
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Closures, Social Safety checks, furloughs: What a shutdown may imply
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Congress has till midnight Friday to give you a strategy to fund the federal government or federal companies will shut down, which means a whole lot of hundreds of federal staff could possibly be despatched dwelling — or keep on the job with out pay — simply forward of the vacations.


Elon Musk and Donald Trump

Republicans deserted a bipartisan plan Wednesday to stop a shutdown after President-elect Donald Trump and billionaire Elon Musk got here out towards it. Trump informed Home Speaker Mike Johnson to primarily renegotiate the deal days earlier than a deadline when federal funding runs out.

Here is what to find out about a attainable authorities shutdown, what companies could be affected and the way lengthy it may final:

What does it imply if the federal government shuts down?

A authorities shutdown occurs when Congress would not go laws both quickly or extra completely funding the federal government, and such a measure is not signed by the president.

When would a authorities shutdown begin?

If Congress doesn’t approve a seamless decision or extra everlasting spending measure by Friday, the federal authorities will shut down.

When the fiscal yr ended Sept. 30, Congress handed a brief funding invoice to maintain the federal government in operation.

That measure expires on Friday.

Which authorities companies could be affected by a shutdown?

Every federal company determines its personal plan for the right way to deal with a shutdown, however mainly any authorities operations deemed non-essential cease taking place, and a whole lot of hundreds of federal staff see their work disrupted.

Typically staff are furloughed, which means that they maintain their jobs however quickly don’t work till the federal government reopens. Different federal staff might keep on the job however with out pay, with the expectation that they’d be paid again in full as soon as the federal government reopens.

The essential guidelines for who works and who doesn’t date again to the early Nineteen Eighties and haven’t been considerably modified since. Below a precedent-setting memorandum penned by then-President Ronald Reagan finances chief David Stockman, federal staff are exempted from furloughs if their jobs are nationwide security-related or in the event that they carry out important actions that “protect life and property.”

Important authorities companies just like the FBI, the Border Patrol and the Coast Guard stay open. Transportation Safety Administration officers would proceed to workers airport checkpoints. The U.S. Postal Service additionally will not be affected as a result of it’s an unbiased company.

However nationwide parks and monuments would shut, and whereas troops would keep at their posts, many civilian staff in companies just like the Division of Protection could be despatched dwelling. Courtroom techniques could be affected, too, with civil proceedings paused, whereas felony prosecutions proceed.

Automated tax assortment would keep on monitor, however the Inside Income Service would cease auditing tax returns.

Will a authorities shutdown have an effect on Social Safety checks?

No. Recipients of each Social Safety and Medicare would proceed to obtain their advantages, that are a part of necessary spending that is not topic to annual appropriations measures. Medical doctors and hospitals would additionally proceed to get their Medicare and Medicaid reimbursements.

But it surely’s attainable that new functions would not be processed. Throughout a authorities shutdown in 1996, hundreds of Medicare candidates have been turned away each day.

FILE - The Capitol in Washington, is framed by early morning clouds, March 19, 2024. Congress has until midnight Friday to come up with a way to fund the government, or federal agencies will shutter. It's up to each federal agency to determine how it handles a shutdown, but there would be disruptions in many services. (AP Photo/J. Scott Applewhite, File)
The U.S. Capitol

What’s a “CR,” or persevering with decision?

When Congress is all the way down to the wire on passing measures to fund the federal authorities, the time period “CR” usually comes up. What does it imply?

“CR” stands for “continuing resolution,” and it’s a brief spending invoice that lets the federal authorities keep open and working earlier than Congress and the president have authorized a extra everlasting appropriation.

A “clean CR” is actually a invoice that extends present appropriations, on the similar ranges because the prior fiscal yr.

What’s an omnibus invoice?

It is a huge, all-encompassing measure that lawmakers typically had little time to digest — or perceive — earlier than voting on it.

There are a whole lot of spending measures all rolled into one, and generally that’s what occurs if the dozen separate funding measures haven’t labored their approach by way of the congressional spending course of in time to be handed in an effort to fund the federal authorities.

However Republicans opted towards an omnibus this time, hoping as an alternative to renegotiate all federal spending subsequent yr when Trump is within the White Home and they’ll management each chambers of Congress.

Is a authorities shutdown going to occur?

Possibly — and possibly not.

There’s usually a scramble on Capitol Hill to place collectively a last-minute funding bundle to maintain the federal government open simply earlier than a deadline, a minimum of quickly. However shutdowns have occurred, most lately six years in the past, when Trump demanded funding for a wall alongside the U.S.-Mexico border. That shutdown was the longest in U.S. historical past.

Jimmy Carter noticed a shutdown yearly throughout his time period as president. And there have been six shutdowns throughout Reagan’s time within the White Home.

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