In the US, the shatdaun began: how and to whom it will affect - ForumDaily
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In the United States began to Shatdaun: how and to whom it will affect

At midnight on December 21 in the United States, a situation of a partial closure of the federal government — the shatdaun — arose.

This happened because legislators and the president failed to agree on a budget for the next few months - the Senate refused to approve a bill that would allocate $5,7 billion for the construction of a wall on the border with Mexico, and US President Donald Trump said that he would not will sign any document on government spending unless it includes funding for the wall, writes with the BBC.

The House of Representatives passed the corresponding bill on Friday evening, but the Senate was unable to approve it.

The leader of the Republican majority in the House of Representatives, Kevin McCarthy, said that in 24 hours he would notify when the House would be ready to vote on the budget. Thus, the Shatdaun became inevitable. Based on the words of McCarthy, it will last at least a day.

Trump then called on Democratic senators to vote “for better security” at American borders.

“We need a great barrier; if we don’t have it, nothing will work,” his new statement says. In it, he already expressed the hope that “the shutdown will not last long,” although on Friday he threatened congressmen with a “very long shutdown.”

The leader of the Republican majority in the Senate, Mitch McConnell made it clear that negotiations will continue. At the same time, the leader of the democratic minority, Chuck Schumer, said that the Democrats are open for discussion, but would not approve any additional funding for the construction of the wall.

Democratic leaders in both houses of Congress, Chuck Schumer and Nancy Pelosi, in turn, said that the shutdown occurred because Trump was “hysterical” over the wall. They promised to pass legislation to reopen the government after winning a majority in the lower house in January.

Meanwhile, the US stock markets experienced the worst week in 10 years. The Dow Jones Industrial Average fell 6,8% over the week (the worst decline since 2008), the broad market S&P 500 index fell 7% (the biggest drop since August 2011), and the NASDAQ high-tech index dropped 8,36%. (for the first time since 2008). On Friday, the indices lost up to 3%.

The US Federal Reserve on Wednesday announced it would raise its benchmark interest rate by 0,25 percentage points to 2,25-2,5% for the fourth time this year. Trump twice this week called on Fed Chairman Jerome Powell to back off from raising rates.

Because of the shatdaun, Trump has postponed his Christmas trip to Florida, and senators who have departed for the holidays are returning to Washington from all over the country.

Third Shatdaun

This will be the third such case in 2018. The situation is aggravated by the fact that after the New Year the Democrats will get a majority in the lower house of congress won in the November elections. In this case, voting for an expensive wall construction project will be impossible.

Proving his case, Trump wrote on Friday morning in Twitterthat Israel's wall on the border with the Palestinian territories is "99,9% successful." According to him, a wall on the border with Mexico will also be effective.

He also posted a picture of a steel fence with the comment: “The design of our steel fence is absolutely effective and beautiful at the same time!”

In January, 2017, Trump signed a decree on the construction of a wall on the border with Mexico, thereby fulfilling one of his campaign promises. At the same time, he promised to ensure that the Mexican government paid for the construction, but then he said that it was necessary to allocate funds from the American budget. In the autumn of this year, the situation on the Mexican border has worsened due to the arrival of a caravan of refugees from Honduras, Guatemala and El Salvador.

While Congress refuses to provide funding for the frontier wall, a veteran of the US Air Force took up the process of collecting money. 16 December he created a page on the GoFundMe portal with a request to donate money to build a wall on the border with Mexico. As of December 22 morning, the amount collected exceeded 14 million dollars, although the target of one billion dollars is still far away.

Who will suffer from the Shatdaun

Recall this shatdaun will have less impact on life and the economy in the United States compared to other similar events in the country in previous years.

The fact of the matter is that 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 are subject to closure after December 21, and even in these departments, key staff will still come to work.

Among the agencies facing partial closures 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.

Expenditures previously approved by the Congress and signed by Trump will, even during the shatdaun, 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, which also expired, said it would “continue vital activities”, ceasing routine checks. The State Department will continue to issue passports - unless the issuing office is inside a building that is operated by another agency that is subject to closure for the time of the shutdown.

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