Policy and Legal

As the federal government shutdown moves into its second week, there’s no sign of “political or practical consequences that would create enough pressure to break the impasse” (The Wall Street Journal, subscription).

What’s going on: “All signs point to another week of posturing and repeat Senate votes that fail to get the 60 votes needed to reopen the government. Congressional leaders in both parties insist that they have the upper hand and that the other side bears the blame for the shutdown.”

The background: Funding for much of the federal government lapsed on Sept. 30 just ahead of the new fiscal year that started on Oct. 1.

• A House-passed measure to extend current funding levels to mid-November is stalled in the Senate.
• House members left Washington Sept. 19 and have yet to return.

What could be next: Agencies could begin federal worker layoffs if negotiations stall. But “two labor unions have filed a legal challenge to the possible mass firings,” and some scholars have questioned the legality of such terminations during a shutdown.

The effects so far: “[H]undreds of thousands of federal workers have been furloughed and others are working without pay. The Bureau of Labor Statistics didn’t release the monthly jobs report on its usual schedule. Some government-funded facilities, including the National Arboretum and National Gallery of Art in Washington, closed to the public.”

• Other functions, including Social Security payments, are continuing as usual.

What could be coming: If not resolved by midmonth, the shutdown will start “weighing on consumer spending and economic growth,” as federal workers will begin foregoing paychecks.

Questions and concerns: If your operations have been impacted, please reach out to your NAM membership representative.