The German media: What is the US government "shutdown"?
Due to the failure of Democratic and Republican lawmakers to reach an agreement on the budget bill, the US federal government officially entered a shutdown state on Wednesday, October 1. The Trump administration has asked federal agencies to continue laying off staff during the shutdown.
The US Congress failed to agree on a bill that would provide a transitional plan for federal government spending after September 30 (the end of the fiscal year).
Although the Democrats are in the minority in the Senate, the Republicans have still not obtained enough majority votes to pass this bill. This means that before a solution to the budget issue is reached, the government must stop all non-essential spending.
The Trump administration has threatened to carry out large-scale layoffs if the federal government shuts down.
What is a "government shutdown"?
A "government shutdown" occurs when Congress fails to reach an agreement on the annual government budget (in whole or in part). This affects the government's discretionary funds that must be allocated each year.
A shutdown first means that the federal government stops paying wages to federal employees and contractors who work for the government. The impact on different government departments varies.
When part of the budget is approved, the government will partially close its institutions, while those with sufficient funding can operate normally. When no budget is signed into law, the government will also shut down more broadly.
During a full shutdown, all non-essential US government agencies and programs will be suspended because they rely on annual budget funds.
Each government shutdown is different, making it difficult to predict specific issues in advance. Some agencies have developed contingency plans and set clear priorities, while others have not. However, there are some common standards from previous government shutdowns.
The most basic services and mandatory expenditure items will not be affected. This means active-duty military personnel, most border protection officers, federal law enforcement officers, and air traffic controllers will continue to work.
Expenditures such as social security, Medicare, and Medicaid, as well as veterans' health benefits, will also continue to be paid. Mail delivery and the Federal Reserve are unaffected because they have different sources of funding.
Who is affected?
The first to feel the impact of the government shutdown are federal employees. According to the nonpartisan organization "Committee for a Responsible Federal Budget," based in Washington, which focuses on fiscal policy, the government shutdowns in 2013 and 2018 resulted in about 850,000 of the 2.1 million non-postal federal employees being temporarily furloughed.
During the furlough period, employees cannot work and do not receive pay, but their wages will be reimbursed once the government resumes operations. Employees who maintain essential public services will not be furloughed, but they will also not receive their wages.
Federal officials confirmed by the Senate cannot be furloughed. The president and members of Congress are also not affected by the shutdown.
The Environmental Protection Agency, the Food and Drug Administration, the Federal Trade Commission, and the Securities and Exchange Commission are among the departments most likely to be closed during a government shutdown.
During past shutdowns, some agencies such as the Department of Defense, the Department of State, or the IRS have required furloughed employees to remain on duty, but they will not receive their wages until the spending bill is finally passed.
National Parks, Museums
Institutions such as NASA or the Library of Congress, which are considered non-essential, may partially or fully suspend operations during a government shutdown.
National parks, national memorials, and museums like the Smithsonian may also be closed, but the Trump administration may force them to remain open with reduced staff.
For federal employees who live on their salaries, a government shutdown may mean temporary financial difficulties.
More concerning is the possibility that the government may use this shutdown as an excuse for further large-scale layoffs. The White House Office of Management and Budget has written to federal agencies, suggesting that they "use this opportunity to consider layoffs."
How long will the shutdown last?
This is not the first time the US government has shut down. It has experienced shutdowns during Clinton, Obama, and Trump's first presidency. The longest one occurred during Trump's first term, spanning 2018 and 2019, lasting 35 days.
Trump threatens to allow the government to be "shut down for a long time"
"Government shutdowns lasting several days are indeed troublesome and weaken public confidence in the ability of American politicians to handle matters that concern the people, but they are unlikely to have a significant impact on the economy," David Wessel of the Brookings Institution wrote last year. "However, prolonged government shutdowns may cause greater problems, although they are usually temporary."
The Congressional Budget Office also agrees that the economic impact of a government shutdown is mostly temporary. However, according to the office's calculation, the government shutdown from 2018 to 2019 caused a loss of $3 billion in US GDP, a loss that is irrecoverable.
Sources: DW
The US Government "Shutdown" Crisis
Original: www.toutiao.com/article/1844824241906698/
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