In December, the closure of the US government is possible: where does this lead

Shatdown or the closure of the US government, caused by the struggle between President Donald Trump and the Democrats because of the financing of the construction of the border wall, will have less impact on life and the economy in the US compared to other similar events in the country in previous years.

Фото: Depositphotos

This conclusion after analyzing the situation came edition Bloomberg.

Congress and Trump previously agreed to fund three-quarters of federal agencies' operating expenses in the amount of 1,2 trillion dollars. As a result, only some agencies will be closed when the previously adopted budget ceases to operate after December 21, and even in these departments, key employees will still come to work.

Among those agencies facing partial closure is the Department of Homeland Security, although many of the agency's law enforcement officers will remain on the job because they are considered essential to the smooth functioning of the government. National parks will be open, but most staff will be staying home. The Securities and Exchange Commission will halt new investigations unless necessary “to protect property.” Funding for the Department of Defense was previously approved, so the department will operate as usual.

It is estimated that around 400 000 federal employees will work without pay, and 350 000 will suspend work. Key workers who are in the interests of the state can not be sent on vacation during the shatdaun, will receive a salary retroactively when the government resumes work and wage payment operations are restored. After previous stops, Congress also passed a law providing for the return of the labor of laid-off workers.

For several months, Trump threatened with a shatdaun because of his demand to fully finance the construction of a wall on the border between the USA and Mexico, which he promised to build during the 2016 election campaign of the year. He wants to allocate much more money for this project than the Democrats are willing to give him, and some Republicans also oppose the amount requested by the president.

Trump met with Democratic Party leaders Nancy Pelosi and Chuck Schumer on Tuesday in the White House, saying that he was ready to close the government “for the sake of US border security.”

Lawmakers from both parties are negotiating with a view to finding a consensus acceptable to both political forces, but their representatives have not yet come to predict whether this will lead to any agreement in the near future.

Temporary financing

Shatdown can be prevented next week if lawmakers and the president agree to pass a short-term financing bill that may last until January, or make some kind of deal that satisfies both parties and lead to a longer budget.

To pass bills on expenditures, several votes of Democrats in the Senate are needed, although Republicans have a majority there.

Sumer and Pelosi said they made two offers to Trump. Both will keep funding the border fence, not the concrete wall that Trump wants, at the current level of 1,375 billion dollars. Trump said he wants to get 5 billions of dollars to build a border wall.

Economic impact

Expenditures already approved by Congress and signed by Trump, even in the case of a shatdaun, will retain the work of some departments, including the Department of Defense, Labor, Health and Social Welfare, and education.

In the Department of Homeland Security, the vast majority of border patrol officers, emergency services and immigration control will be able to continue their work, although their salaries will be delayed until the moment when Congress and the President agree on funding.

On the other hand, in the Department of Housing 87% of 7800 employees will be sent home. The Department of Finance is also among the agencies that will send part of the workers home. The largest department of this department is the Internal Revenue Service, and most of its employees will not come to work, because now is not the tax season. Employees of the Environmental Protection Agency will also be sent home.

The Food and Drug Administration, whose funding is running out, says it will "continue vital activities" by stopping routine inspections. The State Department will continue to issue passports unless the issuing office is inside a building run by another agency that will be closed during the shutdown.

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