WASHINGTON (AP) — Washington is just hours away from yet another federal government shutdown, with prospects looking rather bleak for a last-minute compromise in Congress to avoid federal closures beginning at 12:01 a.m. Wednesday.
Republicans have crafted a short-term measure to fund the government through Nov. 21, but Democrats have insisted that the measure address their concerns on health care. They want to reverse the Medicaid cuts in President Trump’s mega-bill that passed this summer as well as extend tax credits that make health insurance premiums more affordable for millions who purchase through the marketplaces established by the Affordable Care Act. Republicans say the Democratic proposal is a non-starter.
Neither side is showing any signs of budging, with the House not even expected to have votes this week.
What happens in a shutdown?
When a lapse in funding occurs, the law requires agencies to cease activity and furlough their “non-excepted” employees. Excepted employees include those who perform work to protect life and property. They stay on the job but don’t get paid until after the shutdown has ended.
During the 35-day partial shutdown in Trump’s first term, roughly 340,000 of the 800,000 federal workers at affected agencies were furloughed. The remainder were “excepted” and required to work.
What government work continues during a shutdown?
A great deal, actually.
FBI investigators, CIA officers, air traffic controllers and agents manning airport checkpoints continue to work. So do members of the Armed Forces.
Those programs that rely on mandatory spending also generally continue during a shutdown. Social Security checks continue to go out, and seniors who rely on Medicare coverage can still see their doctors and submit claims for payment and be reimbursed.
Veteran health care also continues during a shutdown. Veterans Affairs medical centers and outpatient clinics will be open, and VA benefits will continue to be processed and delivered.
Will furloughed federal workers get paid?
Yes. In 2019, Congress passed a bill enshrining into law the requirement that furloughed employees get retroactive pay once operations resume.
While they will eventually get paid, furloughed workers may have to go without their regular paychecks, creating financial stress for many families.
Will I still get mail?
Yes. The U.S. Postal Service is not affected by a government shutdown. It is an independent entity that is funded through the sale of its products and services, not by tax dollars.
What closes during a shutdown?
All administrations get some leeway to choose which services to freeze and which to maintain in a shutdown. Each federal agency develops its own shutdown plan outlining which workers would stay on the job and which would be furloughed.
In a provocative move, the White House’s Office of Management and Budget has threatened the mass firing of federal workers in the event of a shutdown. An OMB memo indicates that programs that did not receive funding would bear the brunt of the shutdown.
Shutdown practices in the past
Some agencies have updated plans on their websites, providing insights into the activities that will continue or be halted. This includes potential furloughs at the Health and Human Services and Education Departments.
Impact on the economy
A short shutdown typically doesn’t significantly impact the economy, especially since federal workers are paid retroactively. However, extended shutdowns can generate uncertainty regarding government roles and financial impacts on all the programs funded by the government.
As per economic analyses, prolonged shutdowns could lead to economic setbacks, with estimates suggesting a reduction in growth during such periods.
