TL/DR –
The US federal government may shutdown due to inability of the Republicans and Democrats to reach a funding deal. The House has passed a funding extension for seven weeks, which is stuck in the Senate due to Democrats who want health care benefits to be part of the agreement. If the government shuts down, federal workers may be furloughed or laid off, essential workers will work without pay until the government reopens, government agencies will operate with minimal staff, and national parks may close.
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A looming federal government shutdown is the next hurdle Republicans and Democrats must cross as a budget deal seems far from reach.
The House, led by Republicans, passed a funding extension of seven weeks on September 19th. However, it has hit a roadblock in the Senate, where a Democratic vote is essential.
Democrats are pushing for health care benefits to be a part of the agreement, citing the upcoming expiration of Affordable Care Act subsidies. They warn that inaction could lead to a surge in insurance premiums for millions of Americans in the near future.
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However, Republicans dispute the subsidies and the health care plan overall, declining to include it in the current budget debate.
With the House of Representatives away from Washington, any eleventh-hour compromise would necessitate their return to evade a shutdown.
Effects of a Shutdown
A shutdown could result in the furlough or layoff of thousands of federal employees.
Those considered indispensable, such as military personnel, may have to continue working without their usual pay. Although they would receive back pay once the government reopens, the length of the shutdown remains unpredictable.
Different government agencies would face varying impacts from a shutdown. For instance, the IRS has plans to use remaining funds from the Inflation Reduction Act to maintain employee salaries for a few initial days. Other agencies may work with reduced staff, distinguishing between critical and non-critical employees.
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Besides, services may be limited or ceased at national parks, affecting families who have planned visits or made reservations.
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