What means that the United States government closes
Every year, Congress must approve assignments laws to finance federal agencies and services. When these laws are not approved in time, Congress can authorize a temporary solution called Continue Resolution (CR) to maintain the flow of resources while defining spending levels.
If there are neither financing projects nor a CR in force, the Shutdown: The government “closes” because it does not have budgetary authorizations to continue operating. It does not imply the total suspension of the State, but the interruption of various activities.
Each unit has its own plan for these cases. Numerous agencies must stop or reduce services and send their personnel to license without salary enjoyment (Furlough) until the closure ends and the financing returns.
Certain employees classified as “essential” continue working without receiving payment while spending is approved. Once Congress releases resources, wages and operations are restored.
According to the Swiss Financiero UBS, interruptions impact programs such as education, transport or defense; However, in financial markets past closures have generated short and low impact volatility.
What is the current country debt
The balance of US debt It amounts to 37 billion 346 thousand 360 million 176 thousand 155 dollars.
A government closure can subtract 0.1 percentage points of GDP for each week that remains active. This loss is recovered once employees receive backward wages and public spending is normalized, according to UBS.
Analysts cited by the firm point out that despite debt size, investors usually concentrate on variables such as feat cuts by the Federal Reserve and corporate results. The reason: the effect of a Shutdown In the economy it tends to be limited and temporary.
Why could the US government close?
The BBC ensures that any closure would derive from the lack of agreements between both parties to approve a law that funds government services towards October and the following months. Republicans control both Congress cameras, but in the Senate they do not reach the 60 votes necessary to approve the expense project.
This arithmetic gives maneuver margin to the Democrats. According to the medium, they refuse to support a republican initiative that, they affirm, would make access to medical care and have focused the negotiation in advancing their health policy objectives.
The Democratic position includes extending fiscal credits that reduce health insurance for millions of people, reverse medicaid cuts made by the Trump administration and oppose spending reductions in the centers for disease control and prevention (CDC) and in the National Institutes of Health (NIH).
The BBC notes that a temporary spending project has already been approved in the House of Representatives, but still does not exceed the process in the Senate. UBS also warns that federal agencies have not presented updated contingency plans, adding operational uncertainty and reflects the absence of immediate agreements in Congress.
Affected services
– Military and civil wages (they are delayed).
– Regional offices of the Department of Veterans Affairs.
– VA communication and attention lines.
– Hiring air traffic controllers.
– TRAINING AIR TRAFFIC CONTROLLERS.
– Facilities Security Inspections.
– Support for transport police assistance.
– Part of the Social Security Administration staff.
– Death benefits in the department of veterans affairs (such as tombstones).
– Request processing FOIA (Law on Freedom of Information).
– Admission of new patients in NIH research hospitals (except necessary medical cases).
– External contracts and subsidies of HHS.
– Supervision of new ingredients in animal food (FDA).
– Processing requests for new medicines and medical devices (FDA).
– Support to personnel who supervise insecure or ineffective medications (except imminent threats).
– Part of the staff of the Department of Education (95% out of student aid programs).
– New federal education subsidies.
– State/local orientation of CDC on topics such as opioids, HIV or diabetes.
– Surveillance analysis of certain diseases (CDC).
– Part of nutrition programs such as SNAP and WIC (subject to availability of funds).
– Access to national parks (closed or with reduced services).
– Museums and Zoological of the Smithsonian Institute.
– Animal cameras in the National Zoo (Smithsonian).
– Salaries of non -essential federal employees (suspended until reopening).
