Dear Neighbor,
I want to take a moment to update you on the status of government funding legislation and the potential for a government shutdown at the end of this month.
Unfortunately, as it currently stands, the far-right House Freedom Caucus is threatening to shut down the federal government if they don’t get every item on their wish list. Let’s take a look at how we got here.
There are twelve appropriations bills Congress must pass each year to fund the government. If those bills don't pass by October 1, Congress can pass a Continuing Resolution (CR) to keep the government funded at current levels until the funding bills are able to pass.
So, what's the current issue?
The House Majority, despite their slim margin, has decided to try and pass far-right funding bills with only Republican votes. The Senate, on the other hand, is taking the more responsible approach. They have chosen to pass bipartisan bills that can garner enough support from both parties to clear both the House and Senate and make it to the President's desk.
Where does that leave us?
Thus far, the House Majority has been unable to pass their bills in the House. Extremists have already blocked consideration of several bills. Even if the bills do pass the House, they will be dead on arrival in the Senate.
This is a reckless way to govern. Much to my disappointment, Speaker McCarthy is beholden to the Freedom Caucus whose members want a shutdown and have already said no to the possibility of a CR. You don’t have to take my word for it – they are saying it themselves, loud and proud.
We all remember previous shutdowns. We know how bad they are for the economy. But what would a shutdown actually mean for America right now? For one, critical government services will be put on hold. Here's how that could look:
- No routine FDA food inspections
- Closure of National Parks
- Delays at the IRS, the VA, and the Social Security Administration
- Lost or lower SNAP benefits for millions of Americans
- No new loans for small businesses
- No DOJ litigation against criminals and no training for law enforcement officers
- No FTC consumer complaints, no identity theft reports, and no Do Not Call Registry
- No new investigations into or recalls for automotive defects
- No routine EPA inspections of drinking water systems or chemical facilities
That’s just the tip of the iceberg. We know that shutdowns affect everyone. But for federal employees and contractors, the people who keep our country up and running, the outcome is particularly dire. In past shutdowns, almost half of the 2.1 million Americans who work for the federal government were furloughed. These federal employees will not receive back pay until the shutdown is over. Federal contractors, on the other hand, may never receive any back pay at all.
But one thing is perfectly clear – government shutdowns do NOT save us money. In fact, they are enormously expensive. The 2018-2019 Trump shutdown reduced our GDP by $11 billion, including $3 billion that will never be recovered. A shutdown would be especially disruptive on the heels of the latest debt-limit crisis and the recent downgrade of U.S. treasuries by the credit agency Fitch.
Simply put, a shutdown would create more doubt about whether the United States can reliably manage its finances.
Additionally, government shutdowns ultimately add to the federal deficit due to the costs of stopping and restarting government programs. According to data from 2013, the cost of that full government shutdown in lost work-hours totaled at least $2 billion.
Shutdowns also disrupt the $13 billion per week in federal contracts that go to businesses throughout the country — nearly $3 billion of which goes to small businesses. Private companies that have work contracts with federal agencies could face barriers to funding and be forced to lay off workers, lose funds due to lack of available contract work, or end up not being reimbursed for completed projects.
Keeping the federal government open is about fighting for American families. As I continue to do all I can to ensure our government remains funded and functioning, I am calling on Speaker McCarthy support bipartisan bills that can actually pass to keep the government up and running.
As always, my team and I are here to help. If we can be of assistance, please don't hesitate to call us at (703) 256-3071.