Government Shutdown Continues through Second Week; Debt Ceiling Issue Looms

AASHTO Journal, 11 October 2013

Almost two weeks after the federal government closed its doors, furloughing 800,000 employees and shutting down “non-essential” services, congressional leaders and President Obama have resumed budget talks, signaling that the nation could be closer to reaching a deal on raising the debt ceiling and possibly dealing with the government shutdown.

The House and Senate have both voted on their own measures to keep the government funded, but neither side has agreed to the measures passed by the other. The Senate and House were both considering a continuing resolution to fund the government through Dec. 15 at current funding levels, but the House measures have all included stipulations to either defund or delay the Affordable Care Act while the Senate measures have not. This week, the House passed multiple bills aimed at funding portions of the government, including measures that fund the Federal Aviation Administration, the District of Columbia, national parks, border security, veterans’ benefits, the National Institutes of Health, and many others. However, none of these are expected to go anywhere in the Senate, as Senate members are calling for a full CR instead of voting on pieces. Another measure the House passed was to allow for back-pay for all furloughed employees, including those that have been ordered to stay home, which is one measure the Senate may bring to the floor and pass.

The U.S. Department of Transportation last week outlined its shutdown plan which includes furloughs for more than 18,000 of its roughly 55,000 employees. Most of the furloughs are Federal Aviation Administration employees (15,514 employees), though, as previously stated, a House measure would have eliminated that. Nearly all of the Federal Transit Administration staff (501 of 527 employees) and more than half of the Federal Railroad Administration (467 of 886 employees) were also furloughed.

Adding to the concerns about the government shutdown, the House and Senate have been at an impasse on raising the nation’s debt ceiling, which limits the amount of money the U.S. government can borrow. Failure to raise the debt ceiling level not only keeps government from running but would also mean the U.S. would default on its loans. In recent years, House Republicans have voiced their desire to not raise the debt ceiling unless significant spending reductions that would lower the national debt are part of the package, which could be part of the recent discussions with President Obama. The U.S. is scheduled to hit that debt ceiling sometime after next Thursday (Oct. 17).

 

 

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