The Advocates
The Advocates: Government Shutdown – What Does It Mean for Our Region?
| As we conclude the week, a government shutdown looks imminent. Today, September 29th, is the last legislative day for Congress, unless modified, to pass a series of appropriations bills or a short-term continuing resolution to keep the government funded. Beginning on October 1st, the government will shut down without a spending agreement, resulting in economic, political, and national security risks. So, what does this mean? Millions of federal workers, including military and civilian personnel deemed “non-essential,” will be furloughed without pay until a funding solution is reached. If a worker is deemed essential, they are expected to report to work without pay. Locally, all military in uniform at Joint Base Charleston and other installations throughout the region will report to work without pay. This is particularly impactful on young airmen, sailors, soldiers and coasties living paycheck to paycheck. On the civilian side, the Charleston region has over 10,000 federal workers and over 42 federal agencies that will be impacted. A government shutdown is expected to fuel employee retention concerns. All federal employees will report to work on the first workday after midnight following a lapse in appropriation (Oct. 2) to receive guidance on an orderly shutdown. Please be considerate of our service members and federal workers during this time. Furloughed civilian workers and active-duty military’s next pay dates are scheduled for October 13th and November 1st. If there is anything you can do to lighten their load during this time, we know they will be grateful, just as we are for their service. Unlike furloughed federal employees, federal contractors are not guaranteed back pay. To learn more about how federal contractors may be impacted, click here. Particularly impactful for Charleston will be the lapse in the National Flood Insurance Program. Just a few months into hurricane season, the Federal Emergency Management Agency is unable to issue new flood insurance policies or renew existing policies until the government resumes operating. FEMA will continue to pay out claims as long as there is money available. National Parks and Museums will be forced to close during a shutdown, resulting in significant revenue losses. In the Charleston area, this would include Fort Sumter, Fort Moultrie, and Congaree National Park. Although Transportation Security Administration (TSA) and air traffic control will be deemed essential personnel, past shutdowns and working without pay have almost led to worker strikes impacting airport travel. Entitlement programs like Social Security and Medicare will continue to operate during a shutdown in addition to the Postal Service because they are funded by appropriations that do not need to be renewed on an annual basis. The Internal Revenue Service (IRS) will continue under normal operations. How did we get here? To avoid a government shutdown, Congress needed to pass 12 appropriations bills before September 30th. To date, only one of the 12 bills has passed the House (Military Construction). The remaining include funding for: – Agriculture – Commerce, Justice and Science – Defense – Energy and Water – Financial Services and General Government – Homeland Security – Interior and Environment – Labor, Health & Human Services and Education – Legislative Branch – State, Foreign Operations – Transportation and House & Urban Development Scott Barhight, SVP of Government Relations wrote in a January edition of The Advocates, predicting Congressional gridlock following Kevin McCarthy’s unorthodox election to Speaker of the House. The concessions Speaker McCarthy made resulted in a Rules Committee made up of three Freedom Caucus Republicans, four Democrats and six “mainstream” Republicans. That means that the “mainstream” Republicans must find one vote from either the Freedom Caucus or the Democrats to move a bill to a final vote on the floor. A task that has proven to be challenging throughout the appropriations bill process. To simplify things, there are three primary schools of thought in the House: The House Freedom Caucus members believe we must address deficit spending and the national debt while creating a plan to have a balanced budget in the near future. Members of the Freedom Caucus have expressed frustration that the debt ceiling bill did not go far enough to address deficit spending and cuts need to be made. The “Mainstream” House Republicans want to pass a short-term bill that keeps the government open and gives members more time to negotiate the appropriations bills. The House Democrats can look at previous polling from government shutdowns and conclude that the Republican Party will take a significant political hit if there is a shutdown. Democrats are pressuring McCarthy to stick to the debt ceiling bill that was struck with Biden in May. The Chamber recognizes that deficit spending is a problem. The federal government cannot continue to spend at current levels without making cuts elsewhere. However, using our military and civilian workforces as bargaining chips is not the answer. Many predict a shutdown lasting at least a few weeks. Every missed paycheck impacts not only our national economy but also our local economy and our local people. Neil Bradley, with the US Chamber of Commerce, said it best: “A government shutdown isn’t inevitable- it’s a choice. And a dumb one.” |
Posted on
September 29th 2023
Written by
Justin Allen
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