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2013 United States federal government shutdown

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The United States federal government entered a shutdown on October 1, 2013, suspending services deemed "non-essential" by the Antideficiency Act.[1] It is the first U.S. federal government shutdown since the shutdown of 1995 and 1996.[2]

The shutdown was a result of political conflicts among Democratic President Barack Obama, the Democratic-controlled Senate, and the Republican-controlled House of Representatives. These conflicts center on funding for and implementation of the Patient Protection and Affordable Care Act, colloquially known as Obamacare.[3] October 1, 2013, the first day of the 2014 federal fiscal year, is also the date many of the Affordable Care Act's provisions were to take effect.[4] The health insurance exchanges provided for by the Affordable Care Act launched as scheduled on October 1.[5]

Preceding events and issues

The United States Constitution requires government spending to be approved as legislation by the United States Congress. This requires the approval of a majority of members in both the House of Representatives and the Senate, as well as the approval of the president. When one or both houses of Congress are controlled by a different party than controls the presidency, negotiating a budget can be difficult. If no funding authority is provided by Congress, no money can be spent. This leads to the shutdown of those agencies which have not been funded. Prior to the 2013 shutdown, federal government shutdowns had occurred 17 times since 1976, most recently in December 1995.

Since no budget had been passed, a continuing resolution was proposed to fund the government through December 2013, allowing additional time for negotiation over funding levels. However, Republican Senators Ted Cruz, Mike Lee, and others demanded a delay or alteration of the Affordable Care Act in exchange for passing a continuing resolution. Cruz delivered a 21-hour speech in the Senate to draw attention to his goals.

On September 30, the Senate rejected several House proposals that would have funded the government through December while delaying and altering the implementation of some elements of the Affordable Care Act.[6] In like manner, the House rejected the Senate's proposals to fund the government without altering the implementation of the Affordable Care Act. Even if the Senate had conceded to House demands, President Obama threatened to veto any legislation that would delay the Affordable Care Act.[7]

Impact

USDA website in shutdown on October 1

During the shutdown, most "non-essential" government employees are furloughed. This has resulted in approximately 800,000 public servants being put on indefinite unpaid leave beginning October 1.[8] The White House estimates that a one-week shutdown could cost the US economy $10 billion.[9] "A shutdown," President Barack Obama stated, "will have a very real economic impact on real people, right away."[10] Annual savings for 800,000 unpaid furloughed federal employees even at an average cash only salary of $50,000 per year, is $40 billion. Other key government functions, such as air traffic control, remain functional under emergency funding statutes, though other related functions (such as training and support of these services) are suspended. Some agencies and departments—such as the United States Department of Veterans Affairs and Social Security Administration—are funded by long-term or mandatory appropriations, and are also largely unaffected. The United States Postal Service is self-funded and will continue normal operation.[11]

Department of Agriculture

Meat, poultry, and grain inspectors will continue to work.[12] However, USDA will not issue any statistical or economic reports, including reports on the prices and supply levels of agricultural commodities. These reports are particularly important to commodities markets.[13] The Forest Service will close its offices and furlough the vast majority of its staff, with only a limited number of law enforcement and firefighting personnel remaining on duty. Campgrounds and other recreational sites will be shuttered. The Agricultural Research Service and the Foreign Agricultural Service will shut down.[12]

The Special Supplemental Nutrition Program for Women, Infants and Children, or WIC may be seriously curtailed. The government will not contribute any new money into the program, which provides food for low-income pregnant women, mothers and young children. Some states may be able to continue operating the program with existing money for about a week.[14]

Department of Commerce

The Commerce Department will furlough 40,234 of its 46,420 employees. The United States Patent and Trademark Office will remain open for three to four weeks using funds from the fees it collects.[15] The National Weather Service will continue to provide weather forecasts. Some activities related to weather research and developing improvements to the Global Forecast System will cease.[16] The Commerce Department will not release data on the state of the economy.[17]

Department of Defense

Deputy Defense Secretary Ashton B. Carter issued a memorandum detailing which employees would be furloughed.[18]

On September 28, 2013, Rep. Mike Coffman (R-CO) introduced the Pay Our Military Act (H.R. 3210; 113th Congress).[19] The bill would "appropriate funds to pay the military at any time in 2014 when appropriations are not in effect," a situation which would include any potential shutdown.[20] It passed both the House and the Senate,[21] and the President signed the bill into law, recording a video message for members of the military.[22]

Department of Education

The United States Department of Education will furlough 3,983 of its 4,225 employees. The government will continue to disburse Pell Grants and other student loans, but the furloughs may cause delays and will limit the department's ability to respond to questions. In its contingency plan for a shutdown, the Department of Education warns that a "protracted delay in Department obligations and payments beyond one week would severely curtail the cash flow to school districts, colleges and universities, and vocational rehabilitation agencies that depend on the Department’s funds to support their services".[15][23]

Department of Energy

The Department of Energy will furlough 9,584 of its 13,814 employees. Those working will continue to work and be paid until reserve funds are exhausted.[24]

Department of Homeland Security

About 86% of the Department of Homeland Security's 231,000 employees will continue to work during the shutdown. Airport screeners at the Transportation Security Administration will not be affected. 92% of the United States Secret Service, 88% of the United States Coast Guard, 88% of Customs and Border Protection and 78% of the Federal Emergency Management Agency will continue working. 97% of the United States Citizenship and Immigration Services will stay on the job. [25]

Department of Housing and Urban Development

The Federal Housing Administration will continue to process applications for new home loans. However, the agency will furlough more than 96% of its staff, resulting in delays.[26][27]

Department of the Interior

All 401 units of the National Park Service will be closed, with only a limited number of law enforcement rangers and firefighters remaining on duty. The United States Park Police will erect barriers around National Monuments in Washington D.C. and across the country. The list of closed sites includes Yosemite National Park, the Statue of Liberty, Ellis Island, Philadelphia's Independence Hall, Alcatraz, and numerous monuments in Washington D.C. including the Washington Monument and the World War II Memorial.[28] The National Park Service will give visitors who are staying overnight in a National Park 48 hours to leave.[29]

The Bureau of Land Management will stop processing new permits for oil and gas exploration but will continue to monitor and inspect existing production sites and pipelines. The Bureau of Ocean Energy Management will stop nearly all work on new offshore energy production.[30]

Department of Justice

85% of Justice Department employees will stay on the job. Law enforcement officers will stay on the job, but work on civil litigation will stop.[31]

Department of Labor

The Bureau of Labor Statistics will stop conducting research on employment and the economy. The Bureau will stop work on the monthly report on employment. This report, which was scheduled for release on October 4th, is widely used by financial markets to assess the state of the US economy.[17] The Labor Department's weekly report on jobless claims will not be affected.[17]

Department of Veterans Affairs

Medical services provided by the Department of Veterans Affairs will be unaffected by the shutdown. Veterans have already received pension, disability and GI Bill payments for the month of October. If the shutdown lasts for more than 2-3 weeks, the VA may not be able to pay benefits for the month of November. The VA will continue to work on disability claims that were filed before the shutdown, but veterans may experience delays. New disability claims will not be processed during the shutdown and all appeals of disability claims will be suspended.[32] The VA will furlough 14,224 of its 332,025 employees.[15]

Federal Reserve

The Federal Reserve is not impacted by the Government shutdown as it is not dependent on Congressional appropriations for its funding. [33]

General Services Administration

The General Services Administration will furlough a large part of its 11,821 employees while maintaining an active workforce of about 4,094 to continue maintenance of federal property and to continue ongoing construction projects through the Public Buildings Service. Employees of the Federal Acquisition Service will not be immediately furloughed but may be subject to a phased shutdown that could take 25 business days.[34]

Centers For Disease Control

The Centers For Disease Control will not be able to conduct "in-depth investigations to identify and link outbreaks that may be occurring simultaneously in multiple states" or provide flu surveillance due to the furloughing of 68% of its employees.[35]

Environmental Protection Agency

The Environmental Protection Agency will furlough over 93% of its 16,205 employees. The Agency will almost entirely cease issuing licenses and permits, which may cause delays for companies seeking to build or expand facilities. The agency will stop working on new policies in areas such as air pollution and renewable fuels. [36]

Internal Revenue Service

The Internal Revenue Service will not provide assistance to taxpayers during the shutdown. Tax refunds are likely to be delayed, but taxpayers with an extension of their 2012 income tax return will still be required to submit the return by October 15. The IRS will suspend audits of taxpayers during the shutdown, however, IRS criminal investigations will continue at nearly normal levels. 90% of IRS employees will be furloughed.[37]

National Aeronautics and Space Administration

NASA will furlough 98% of its staff, leaving fewer than 600 out of 18,000 employees on the job. NASA will continue to support the astronauts on the International Space Station and the agency will maintain spacecraft that have already launched. However, work with unmanned spacecraft will be minimal. According to NASA spokesman Allard Beutel, the Curiosity rover currently on Mars "will be put in a protective mode for the security of the rover, but no new data-gathering will take place.” The Hubble Space Telescope will continue to operate, but analysis of the data it collects will cease. Work on any spacecraft that have not yet launched will stop.[38][39]

National Institutes of Health

The National Institutes of Health will cease research conducted at its headquarters in Bethesda, Maryland and will not enroll new patients in medical trials. NIH recently completed one round of grantmaking to outside researchers and applications for the next round are due on October 5th. If the shutdown is not prolonged, approval of new grants should not be disrupted. In rare cases, medical researchers who have received grants from NIH may have difficulty accessing funds.[40] The related National Institute of Environmental Health Science will also cease research conducted at its headquarters in Research Triangle Park, North Carolina. On the NIH official website, a warning was posted that read, "Due to the lapse in government funding, the information on this web site may not be up to date, transactions submitted via the web site may not be processed, and the agency may not be able to respond to inquiries until appropriations are enacted."[41]

National Science Foundation

The National Science Foundation will not make payments to scientists during the shutdown. The NSF will not accept reports from grantees and will not respond to inquiries.[42]

Small Business Administration

The Small Business Administration will stop processing new loans to small businesses with the exception of loans to businesses affected by natural disasters. Existing loans will be unaffected. Programs that help mentor business owners, including businesses owned by veterans, will be shut down. About 62% of SBA employees will be furloughed.[43]

Smithsonian Institution

The Smithsonian Institution will shut down. Among the attractions that will be closed are the National Museum of Natural History, the National Air and Space Museum and the National Zoological Park. Skeleton crews will be on site to provide security and to feed and care for the animals.[44]

State Department

The United States Department of State will continue to process visa and passport applications, using funds from fees. Consular services will also continue. The department's Office of the Inspector General will shut down. The State Department has also instituted a hiring freeze and delayed the start dates of applicants who received job offers.[45]

National Archives

The National Archives and Records Administration (NARA) will shut down all its archival facilities and the NARA-operated parts of Presidential Libraries. The NARA Federal Records Centers will remain open. Most NARA employees will be furloughed.[46]

Other

Reactions

President Barack Obama said he would not cave in to "ideological" demands.[47]

U.S. financial markets rose the next day as investors weighed the effects of the shutdown.[48] However, in the U.K. markets fell.[49]

Public opinion

On the eve of the shutdown, a CNN/ORC poll found that 46% of the country would more strongly fault congressional Republicans in the event of a shutdown, as opposed to 36% who would primarily fault Obama.[50] General sentiment was against the shutdown, with 60% desiring a budget agreement and one-third of the country believing it to be more important to prevent the implementation of the Affordable Care Act by cutting government funding.[51] Likewise, the predominant attitude towards Congress as a whole was one of strong dissatisfaction; in a Washington Post-ABC survey released on September 30, both parties suffered higher disapproval than approval ratings for their handling of budget negotiations; Democrats by a margin of 34% in approval to 56% in disapproval and Republicans by a margin of 26% approval to 63% disapproval.[52]

See also

References

  1. ^ U.S. federal courts to remain open if government shuts down, Joseph Ax, Reuters, September 30, 2013.
  2. ^ "Government shutdown 2013". Politico.Com. Retrieved October 1, 2013.
  3. ^ "Congress fails to reach budget deal", Headnine, September 30, 2013
  4. ^ Weisman, Jonathan; Peters, Jeremy W. (September 30, 2013). "Government Near Broad Shutdown in Budget Impasse". New York Times. Retrieved September 30, 2013.
  5. ^ "What key dates do I need to know". Retrieved October 1, 2013.
  6. ^ http://www.theglobeandmail.com/news/world/us-congress-remains-divided-in-budget-showdown/article14620528/
  7. ^ "White House: Obama will veto House shutdown bill". Cnbc.com. Retrieved October 1, 2013.
  8. ^ "Federal Agencies Lay Out Contingency Plans for Possible Shutdown", The New York Times, September 28, 2013
  9. ^ "Here's How a Government Shutdown Hurts the American People". The White House Blog. Retrieved October 1, 2013.
  10. ^ "President Obama's Sept. 30 remarks on the looming government shutdown". Retrieved September 30, 2013.
  11. ^ "United States Postal Service homepage (see Alert)". United States Postal Service. Retrieved October 1, 2013. See File:United States Postal Service government shutdown screenshot.png for archived screenshot.
  12. ^ a b Abbott, Charles (September 30, 2013). "USDA will mostly "go dark" in case of federal shutdown". Reuters. Retrieved October 1, 2013.
  13. ^ Gee, Kelsey (September 30, 2013). "USDA Expects to Halt Some Reports if Government Shuts Down". Wall Street Journal. Retrieved October 1, 2013.
  14. ^ Hargreaves, Steve (October 1, 2013). "Shutdown threatens nutrition for mothers, children". CNN Money. Retrieved October 1, 2013.
  15. ^ a b c "Impact of a government shutdown". The Washington Post. September 30, 2013. Retrieved October 1, 2013.
  16. ^ Samenow, Jason (September 30, 2013). "National Weather Service would continue operating in shutdown". The Washington Post. Retrieved October 1, 2013.
  17. ^ a b c Lange, Jason (September 27, 2013). "U.S. jobs report, other economic data would be delayed by shutdown". Reuters. Retrieved October 1, 2013.
  18. ^ "Government Shutdown: What you need to know". Department of Defense.
  19. ^ "H.R. 3210 - Actions". United States Congress. Retrieved October 1, 2013.
  20. ^ Kasperowicz, Pete (September 28, 2013). "GOP releases text of 'Pay Our Military Act'". The Hill. Retrieved October 1, 2013.
  21. ^ Cox, Ramsey (September 30, 2013). "Senate passes bill ensuring military pay during shutdown". The Hill. Retrieved October 1, 2013.
  22. ^ Chris Carroll; Leo Shane III (October 1, 2013). "Obama signs law to pay servicemembers during shutdown". Stars and Stripes.
  23. ^ Smith, Brian (September 30, 2013). "Government shutdown: What it would mean for schools and colleges". Michigan Live. Retrieved October 1, 2013.
  24. ^ "Government shutdown:What's closed, what's open?". CNN. October 1, 2013. Retrieved October 1, 2013.
  25. ^ Hicks, Josh (September 30, 2013). "How would a shutdown impact Homeland Security?". The Washington Post. Retrieved October 1, 2013.
  26. ^ Christie, Les (September 30, 2013). "FHA will keep lending during shutdown". CNN Money. Retrieved October 1, 2013.
  27. ^ Sayre, Katherine (September 30, 2013). "Government shutdown impact on mortgage market depends on timing, real estate officials say". New Orleans Times-Picayune. Retrieved October 1, 2013.
  28. ^ "Tourists to be shut out from national parks, monuments under government shutdown". Fox News. October 1, 2013. Retrieved October 1, 2013.
  29. ^ Hetter, Katia (October 1, 2013). "U.S. shutdown impact on travelers: National parks to be deserted, air traffic control stays open". CNN. Retrieved October 1, 2013.
  30. ^ Guillen, Alex (September 30, 2013). "Inside the shutdown plans of DOE, Interior, EPA, others — Moniz talks shutdown, Binz — Second phase of BP trial begins today". Politico. Retrieved October 1, 2013.
  31. ^ Reilly, Ryan (September 30, 2013). "Holder: DOJ Employees Will 'Suffer' Under Shutdown". Huffington Post. Retrieved October 1, 2013.
  32. ^ Tarantino, Tom (September 30, 2013). "Government Shutdown FAQ for Veterans". The Huffington Post. Retrieved October 1, 2013.
  33. ^ http://www.reuters.com/article/2013/09/30/us-usa-fiscal-factbox-idUSBRE98T0KO20130930
  34. ^ http://www.federaltimes.com/article/20130930/DEPARTMENTS/309300022/Shutdown-will-force-GSA-limit-facility-services
  35. ^ "CDC Shutdown: No In-Depth Investigations of Outbreaks - Washington Wire - WSJ". Blogs.wsj.com. September 20, 1940. Retrieved October 1, 2013.
  36. ^ The group charged with enforcing environmental regulations will furlough all but 182 of its 804 employees.Volcovici, Valerie (September 30, 2013). "EPA to be hit hard in shutdown, could delay renewable fuel standard". Reuters. Retrieved October 1, 2013.
  37. ^ Erb, Kelly Phillips (October 1, 2013). "With Shutdown, Taxes Still Due But You Can't Ask IRS For Help". Forbes. Retrieved October 1, 2013.
  38. ^ Malik, Tariq (September 30, 2013). "Government Shutdown Would Ground NASA 'Almost Entirely,' Obama Says". SPACE.com. Retrieved October 1, 2013.
  39. ^ Palmer, Roxanne (September 30, 2013). "US Government Shutdown And Science: Curiosity Goes To Sleep, Flu Monitoring Goes Offline". International Business Times. Retrieved October 1, 2013.
  40. ^ Field, Kelley; Paul Basken; Jennifer Howard (September 30, 2013). "How a Government Shutdown Would Affect Academe". The Chronicle of Higher Education. Retrieved October 1, 2013.
  41. ^ "Banner Search". US National Library of Medicine, National Institutes of Health. October 1, 2013. Retrieved October 1, 2013.
  42. ^ Austin, Jim (September 30, 2013). "The Latest Shutdown Information for NIH- and NSF-Funded Researchers". Science Careers. Retrieved October 1, 2013.
  43. ^ Clifford, Catherine (September 30, 2013). "Government Shutdown Would Close Pipelines of Credit to Main Street Businesses". Entrepreneur. Retrieved October 1, 2013.
  44. ^ Schulte, Brigid; Jouvenal, Justin (September 25, 2013). "From Art to T. Rex, Shutdown Stirs Worry". The New York Times. Retrieved October 1, 2013.
  45. ^ McCormick, Ty (September 30, 2013). "The Shutdown Won't Break the U.S. Foreign Policy Machine (Right Away)". Foreign Policy. Retrieved October 1, 2013.
  46. ^ "NARA 103-1 , Operations in the absence of appropriations" (PDF). National Archives and Records Administration. Retrieved October 1, 2013.
  47. ^ http://www.bloomberg.com/news/2013-09-30/obama-says-he-won-t-give-into-ideological-demands-on-budget.html
  48. ^ http://www.bloomberg.com/news/2013-10-01/u-s-stock-index-futures-advance-amid-government-shutdown.html
  49. ^ http://www.bloomberg.com/news/2013-10-01/u-k-stocks-are-little-changed-amid-partial-u-s-shutdown.html
  50. ^ Heavey, Susan (September 30, 2013). "More would blame Republicans for government shutdown: poll". Reuters. Retrieved October 1, 2013.
  51. ^ Steinhauser, Paul (September 30, 2013). "CNN Poll: GOP would shoulder shutdown blame". CNN. Retrieved October 1, 2013.
  52. ^ Clement, Scott (September 30, 2013). "POLL: One in four approves of Republicans' handling of government shutdown standoff". Washington Post.
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