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Kiplinger
Kiplinger
Business
Esther D’Amico

Facing A Government Shutdown Possibility — Again

Hanging open and closed signboards.

The House of Representatives and Senate face two deadlines in the next four weeks in which to agree on 12 major federal funding bills that will keep key parts of the government from shutting down — and neither chamber will be in session till next week.

A lot is at stake if they fail to meet those challenges, which they have so far failed at twice since last fall. This includes the prospect that many government operations would be forced to close or run on greatly reduced staff with limits on some public services if they are not properly funded.

A government shutdown could affect you in a number ways from disrupting travel plans to stopping certain outreach programs for veterans among others.

In November, when the lawmakers found themselves in the same position they are now in, they agreed to a stopgap process in two steps, known as continuing resolutions (CRs), that extends the timeline for passing four of the bills until January 19, with a separate vote on the rest on February 2. To avoid a partial shutdown in January and an even larger one in February, both the House and Senate must agree to either pass the bills or extend the deadlines yet again for their passage.

Those time frames are somewhat misleading, however, because neither chamber is due to return to Washington until next week and there is a federal holiday on January 15, leaving little time for the lawmakers to debate. In addition, the funding bills are only part of an already full legislative agenda in an election year that is set to include a battle for the White House and debates over foreign aid for Ukraine and Israel, as well as border security policy.

House Speaker Mike Johnson (R-LA), who crafted the two-step CR, needed the help of House Democrats in November to reach the necessary two-thirds supermajority for the bill to pass in the House. He continues to face harsh criticism for that move from hard-line House Republicans, who wanted it to include deep spending cuts.

Some of those same Republicans helped to oust his predecessor Kevin McCarthy (R-CA) from the speakership in October after he was also forced to rely on Democrats to temporarily avert a shutdown. (McCarthy has since left Congress, and the House now sits with 220 Republicans and 213 Democrats.)

Honeymoon over for House speaker

For Johnson, who became speaker on October 25, the honeymoon is over. He has said that he wants spending cuts, setting the stage for another congressional impasse that could result in a government shutdown.

Johnson has also vowed to refuse to pass another short-term CR but has noted the possibility of a full-year CR if Congress fails to pass the funding bills before they expire.

In a December 7 fact sheet, Sen. Patty Murray (D-WA), chair of the Senate Appropriations Committee, slammed the idea of a date-change, full-year CR, saying that it would harm defense and certain domestic programs.

“Importantly, the Speaker’s proposal would also mean that across agencies, new initiatives, services, and programs would be put on pause,” Murray said. “All the critical new funding and policies the Senate Appropriations Committee advanced with overwhelming bipartisan support across all twelve FY24 spending bills would also vanish.”

If the government shuts down

Here’s what to know about the agencies and services that are at stake in a shutdown:

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