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What will happen in the event of a government shutdown? Print Share

Thursday, April 7, 2011

What will happen in the event of a government shutdown?

As you may know, if Congress fails to pass a budget for the remainder of this fiscal year by this Friday at midnight, the federal government will shutdown.

While there are many unknowns in this situation, and Jeff is hopeful that we can still avoid a shutdown by passing a budget soon, we realize that many New Mexicans are concerned and confused about the situation.

If the federal government does close:

  • IRS processing of tax refunds for paper-filed returns would be suspended. You would, however, still be required to file your taxes on time (postmarked April 18).
  • The Small Business Association would cease approving loans. Businesses seeking capital, real estate investments, and job creation assistance would be affected.
  • U.S. Department of Agriculture programs would be halted, including export credit and trade development assistance to local farmers, farm loans and payments, and loans and loan guarantees for rural businesses, utilities, and housing programs.
  • Most Veterans Benefits Administration support services would cease.
  • All national parks would close.  In Washington, D.C., all Smithsonian museums, the National Zoo, and many national monuments would be shuttered; all New Mexico's parks—including White Sands National Monument, the Gila Cliff Dwellings, Pecos National Park, and Carlsbad Caverns— would also close.

Some federal agencies and services would remain operational, such as:

  • Military operations overseas, Border Patrol operations, and core federal law enforcement would continue operating.  These federal employees would accrue pay but their paychecks would be delayed until after the federal government reopens.
  • The Federal Aviation Administration would keep air traffic control units open.
  • Social Security checks would be distributed.
  • Supplemental Nutrition Assistance Program (SNAP) and the Women, Infants, and Children (WIC) and other child nutrition programs would continue.
  • Public schools in New Mexico would not be affected. State and local governments supply the majority of public school funding, but the funds that do come from the federal government are normally distributed in advance—grants were awarded last July and October. Jeff is committed to protecting federal education funding in the FY11 budget so that New Mexican students can continue receiving tuition assistance, subsidized lunches, and other programs heavily supplemented with federal funding, but a federal shutdown would not have immediate impacts on New Mexico's public school programs.

The U.S. Office of Personnel Management has an overview on the potential impact of a federal shutdown. The Washington Post recently posted a helpful article outlining some details (they have updated this FAQ article), as well.  You can learn information on individual agencies on the Washington Post's website.

This post will be updated as more information becomes available.

        While there are many unknowns in this situation, and Jeff is hopeful that we can still avoid a shutdown by passing a budget soon, we realize that many New Mexicans are concerned and confused about the situation.

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