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What will happen if Congress cannot reach an agrement on spending bills for this fiscal year? Print Share

Thursday, March 17, 2011

What will happen if Congress cannot reach an agreement on spending bills for this fiscal year?

If Congress fails to either pass another CR or fund the federal government for the next five months, there could be a government shutdown. That would mean all "non-essential" federal employees would be ordered to stay home from work, and not be paid for that period of time.

Each federal agency determines which employees are essential in order to maintain a skeleton operation, but the vast majority of individuals employed by the federal government will be furloughed, including Department of Defense and very likely national laboratory employees. Troops in Afghanistan and Iraq as well as a minimum amount of Border Patrol agents are deemed essential and would work (and be paid) on a regular schedule.

The last time there was a government shutdown was in 1995, with unfortunate results. For example, Veterans Affairs hospitals were cut back, able to handle only acute cases; caseworkers who review eligibility for Social Security retirement benefits or Veterans disability benefits were sent home; and the Small Business Administration stopped providing loans to businesses. 

        If Congress fails to either pass another CR or fund the federal government for the next five months, there could be a government shutdown.

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