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Federal Government shutdown – What will be the impact?


Federal-Government-shutdown

The White House has ordered all the government agencies to start shutting down as the Congress failed to find a compromise on government spending bill. It is expected that this shutdown will have far-reaching consequences on everything. Moreover, the impact will be determined to some extend on the fact whether the agencies are partly funded by industry user fees or considered to be essential services.

Impact of Federal Government shutdown

The Federal Government shutdown will have different types of impact on difference agencies and organizations. Let's take a look at them:

Impact on White House: Due to the shutdown, the Executive Office of the President will temporarily layoff around 1,265 staff and retain 436 as excepted workers. Amongst the staff retained, around 15 will provide "minimum maintenance and support" for the White House.

Impact on Federal workers: Around 1 million federal workers will have to face temporary non-paid layoffs as per the American Federation of Government Employees. This will have severe impact on their personal lives and can jeopardize their financial situation.

Impact on U.S. Securities and Exchange Commission: They will review applications for initial public offerings (IPOs) and monitor markets as normal in the early weeks of a government shutdown.

Impact on publishing of Economic Data: Well, due to the government shutdown, the United States will stop publishing economic data including the monthly employment report which is extremely important and closely watched.

Impact on U.S. Intelligence Agencies: A large number of intelligence personnel might be placed on leave. But those personnels who support the President and collect data from spy devices and informants, etc. will remain on their jobs.

Impact on Department of Health and Human Services: Around 52% of the staff in this Department will be furloughed. Also, the National Institutes of Health would not admit new patients in most circumstances.

Impact on Defense Department: Around half of the civilian employees who are a part of the Defense Department will be placed on unpaid leaves. However, all military personnel will remain in normal duty.

Impact on U.S. Food and Drug Administration: Around 55% of the employees will remain on their job and will be working. However, it will stop most of its nutrition and cosmetics activities, food safety, routine inspections of plants and facilities, etc.

Impact on National Parks: As per the National Parks Conservation Association, closing down of National Parks will mean a loss of 750,000 daily visitors and an economic loss of $30 million for each day parks are shut.

Impact on Internal Revenue Services: Around 90,000 employees of this department will have to face unpaid temporary layoff. October 15th is the deadline for taxpayers, to file their taxes, who requested for an extension of tax payments beyond April 15 deadline.

Impact on Justice Department: Very few employees will be furloughed in this Department. Criminal litigation would continue even after government shutdown, while civil litigation would be curtailed or postponed as much as possible.

Impact on Courts: The U.S. Supreme Court will operate normally. This has been the case during the time of previous shutdown. Federal courts will remain open for the first 10 days of the shutdown and thereafter the status would be reassessed.

There are many other Departments and agencies which will face negative impacts of this government shutdown.

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