How a Government Shutdown Could Affect You
A government shutdown looms, threatening the incomes of 4.5 million Americans. How would a shutdown affect you?
From The Wall Street Journal. Congress is running short on time to pass new spending legislation. If Republicans and Democrats don’t reach a deal before Oct. 1, much of the federal government will have to shut down.
Here is why that might happen — and what it would mean for Americans.
Why might the government shut down?
Congress has to pass new legislation to fund the government every fiscal year. Democrats and Republicans don’t have a deal for a full-year spending package, so House Speaker Kevin McCarthy (R., Calif.) proposed a short-term extension through October to allow more time for negotiations.
But a small group of House Republicans blocked that. They have opposed a stopgap bill, seeking deep spending cuts and limits on aid to Ukraine, among other demands. McCarthy can lose only four Republican votes to pass legislation without having to rely on Democratic support. Asking the other party to help him pass legislation could threaten his speakership. …
What happens then?
Without funding from Congress, the head of the White House Office of Management and Budget would send a directive across the federal government: Begin shutting down.
Uniformed members of the military and law enforcement would stay on the job, the White House has said. …
Whether they are at work or on furlough, none of the roughly 4.5 million people on the federal payroll get paid during a shutdown. Under a law passed in 2019, they receive back pay for any missed paychecks once the government opens again.
What does that mean for me? Will I still get my mail?
At first, many Americans might not notice much difference. Many essential government services continue during shutdowns. Payments on Treasury debt would be made. Social Security checks would be delivered. So would the mail. …
Will I still have to make student-loan payments?
How could this impact the economy?
Government spending makes up about a quarter of U.S. gross domestic product, so a sudden slowdown in that spending can have tangible economic consequences, especially if it goes on for several weeks.
Analysts at Goldman Sachs expect a shutdown would shave 0.2 percentage points off annualized GDP growth every week. …
Federal workers and contractors could face the most serious consequences. … Unlike federal employees, contractors aren’t guaranteed back pay for missed work during a shutdown. …
Share this article to encourage others to pray over the potential shutdown.
(Excerpt from The Wall Street Journal. Photo Credit: Doug Armand/Getty Images)
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