The Effects of the Government Shutdown

government shutdown

Closing out its fourth week, the Federal Government shutdown continues with no limit in the forecast. December 22 marked the occasion when the funding that would continue government operations went unsigned in a border wall dispute.

Interests with economic reserves barely feel the shutdown effects. But those on the government payroll, or on government services, are significantly affected.

Among agencies and agency employees affected was the Federal Emergency Management Agency (FEMA), with a block on issuing flood certified flood insurance, preventing banks by federal law from approving federally backed home mortgages and causing projected millions in lost revenue. Since the block placed added stress on banks and financial institutions, on December 21 — hours before the shutdown — Congressional interests temporarily reauthorized the National Flood Insurance Program (NFIP), allowing FEMA flood insurance certifications to flow through May of 2019.

Even though FEMA strongly maintained that the Anti-Deficiency Act prohibits government agencies from entering into contracts or spending money if the projects aren’t funded, Congressional supporters of the flood insurance extension suggest the NFIP will ‘obtain’ its own funding.

“Now we can work on long-term reforms. We can make the program sustainable without it becoming unaffordable,” stated Louisiana Sen. John Kennedy.

Meanwhile, roughly 800,000 federal employees are furloughed or working unpaid; thousands of contractors are temporarily out of work; key agency approvals are causing business slowdowns; the Small Business Administration is closed down for assistance to small businesses; many imports are going unprocessed; grants and contracts processing is delayed; and thousands of businesses with contracts tied to the federal government could lose a cumulative $200 million a day.

The Transportation Security Administration is anticipating the inability to make payroll to its  TSA employees. And millions of Americans are becoming even more food insecure as the Supplemental Nutrition Assistance Program (SNAP) could be disrupted.

You can express your concern for the Government shutdown by urging your Congressional representatives to pressure for financing to reopen the Federal Government.

For more detail on the Government Shutdown see:

 

Author: jmelange

I am a writer living in the Bay Area, California.

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