Monday, December 11, 2023

What does a government shutdown mean in the US?

Washington.- The federal government is on the verge of a shutdown and that will impact many services, employees and cloud policies, while Republicans in the House of Representatives, driven by far-right demands for deep cuts, force a confrontation over federal spending.

Although some government agencies will be exempt – for example, Social Security checks will continue to be issued – other functions will be severely limited.

Federal agencies will stop all actions deemed non-essential and millions of federal employees, including military personnel, will not receive pay.

What is a government shutdown? A shutdown occurs when Congress fails to pass a funding bill signed by the president.

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Lawmakers are expected to approve 12 different spending proposals to fund government agencies, but that process takes time.

If the bill does not pass, federal agencies will have to stop all non-essential work and will not issue checks to pay wages for the duration of the shutdown.

The state funding expires on October 1st.

What are the effects of a closure? Millions of federal workers face loss of pay if the government shuts down, including two million military and more than two million civilian employees across the country.

Nearly 60 percent of employees are employed by the Department of Defense, Veterans Affairs and Homeland Security.

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Federal employees work in all 50 states and have direct contact with taxpayers – from Transportation Security Administration agents who run airport security to postal workers who deliver mail.

In addition to federal employees, a shutdown could have far-reaching effects on government services. People applying for services such as clinical trials, firearms permits and passports could face delays.

Businesses that have a close relationship with the federal government, such as contractors or tourism services in national parks, and the travel industry could lose $140 million a day as a result of the shutdown.

Goldman Sachs estimates that a shutdown could reduce economic growth by 0.2 percent each week for its duration, although growth could pick up once the government reopens.

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Nation World News Desk
Nation World News Desk
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