The United States faced an impending deadline for a government shutdown that could have started at 12:01 a.m. on Saturday, December 21, as the battle over a federal budget bill came to a close. That made people wonder what kinds of payments and services may be affected if funds stopped being provided a few days before the holidays. When certain Republicans, including President-elect Donald Trump and Elon Musk, objected to billions of dollars in expenditure that had been added to the plan, the budget package that would have extended funding through March 14 collapsed, threatening a shutdown.
Due to government expenditure delays and furloughed workers’ lower wages, the U.S. economy will lose $6 billion every week of a federal shutdown.
This is what might happen if the US government shutdown.
Workers are anticipating a difficult holiday season, which can involve increased traveler wait times, as a funding deadline draws near. Since 1976, the federal government has had over 20 funding gaps and shutdowns of various magnitudes, which have had a variety of effects on agencies and the general population. About 800,000 of the more than two million federal employees were placed on leave for more than a month beginning in December 2018 during Donald J. Trump’s first term as president.
Washington and its sizable federal workforce prepared for a potentially chaotic holiday season as lawmakers rushed to reach a financial agreement that would keep the government open past Friday’s midnight deadline. Employees of the Transportation Security Administration and air traffic controllers would presumably continue to work, so travel would still probably continue without significant disruptions. However, travelers may see delays at airports, similar to what happened during the closure in late 2018.
Could the U.S. economy suffer from a shutdown?
Gregory Daco, chief economist at EY, wrote in an email that the U.S. economy will lose $6 billion every week of a federal shutdown because of several effects, including reduced wages for furloughed workers and delays in government expenditure.
Would air travel or the TSA be impacted by a government shutdown?
There are many concerns about the potential effects of a shutdown on air travel, as millions of Americans are anticipated to travel over the holidays. Agents of the Transportation Security Administration and air traffic controllers would have to work unpaid because they provide vital services.
Is the military compensated during a government shutdown?
Federal law enforcement and active-duty military personnel would still be employed, but they would not get compensation until Congress approved additional funding. The majority of civilian employees of the U.S. Department of Defense, however, would be placed on furlough. According to the Military Times, Veterans Affairs and the Defense Department are anticipated to begin informing employees about shutdown procedures Thursday.
What shuts down during a government shutdown?
The Committee for a Responsible Federal Budget, a public policy organization that focuses on federal spending, said that a shutdown would delay or halt many services, including food and environmental inspections by the U.S. Food and Drug Administration and the Environmental Protection Agency.
For what duration might a government shutdown occur?
According to a research report released by Goldman Sachs analysts on December 18, the recent events have raised the likelihood of a government shutdown. However, they also stated that “a protracted shutdown looks unlikely in our view.” If Republicans can amend the plan to satisfy Trump, who protested the billions of dollars in more spending included in the bill, a spending measure might also be passed by the deadline of December 21, according to Goldman’s analysts.