with Congress Barrel As the government shutdown approaches, many Americans are wondering how it might affect them. Here’s a guide to what you can expect.
A government shutdown occurs when Congress does not approve funding for the federal government by the time the new fiscal year begins on October 1. Every year, Congress must pass 12 Appropriation Bills creates that Preferred spending budget and set funding levels for federal agencies.
If lawmakers fail to pass all or some of the appropriations bills, many government activities will stop, resulting in a partial or full government shutdown until Congress acts. However, government functions deemed essential will continue.
Each federal agency comes up with a contingency plan that outlines which of its operations will continue during the shutdown, which will cease, as well as how many of its employees will continue to work and how many will be furloughed until the shutdown ends.
As many federal employees are out of work during a government shutdown, many services are halted or slowed, disrupts the daily lives of many Americans.
Notably, Social Security payments will continue to be distributed to seniors, Americans, and people with disabilities. The postal service will also continue its regular service.
Here are some examples of how the shutdown could affect you.
Check out this interactive content on CNN.com
When the shutdown happens, millions of federal employees and military service members won’t get paid until it ends.
Employees considered “essential” are employed in services that protect public safety or national security. In the past, this included services such as federal law enforcement, air traffic control, and the US Postal Service.
Non-essential employees have been furloughed or temporarily suspended.
Both groups will have to withdraw from savings or find other ways to stretch their dollars, not just until the shutdown ends, but until the paychecks come back. Number of workers affected depending on whether the shutdown is complete or partial. If some appropriations bills are passed on time, the relevant federal agencies will approve the funding and operate as usual, resulting in only a partial shutdown.
when Past The 2018-19 government shutdown left 420,000 federal employees without pay and another 380,000 furloughed. But depending on which agencies are affected, these numbers could be much higher.
Government contractors are even worse. Unlike federal workers, contractors are not guaranteed back pay once the government reopens. Contractors number in the millions, and companies that work for NASA, the Department of Homeland Security, the Federal Aviation Administration, and other federal agencies provide many services, such as information technology or infrastructure repair.
At the national level, government shutdowns can have long-term economic consequences, stifling growth and promoting uncertainty, especially if they drag on. Some of these are expenses Adds Raising the unemployment rate, reducing growth in gross domestic product (GDP) and raising the cost of borrowing. A government shutdown could happen every week cost EY estimates that the US economy will shrink by $6 billion and GDP growth by 0.1 percentage points in the fourth quarter of 2023.
A shutdown leaves the state of the U.S. economy in limbo. In such an event, the Bureau of Labor Statistics stops releasing data such as key statistics on inflation and unemployment. Challenging The decisions are especially important at this time, as the central bank is at a critical juncture in its campaign to defeat hyperinflation — a time when the Federal Reserve and investors have to interpret the economy and make decisions.
Business as usual across the country has been affected. During the last shutdown, Govt Suspended The two largest Small Business Administration loan programs distribute nearly $200 million a day to small and medium-sized American businesses. New business will also stall. In 2019, pending corporate mergers Slowly Because the Securities and Exchange Commission (SEC) is not fully staffed and initial public offerings are suspended after the SEC stopped Review and approve filings.