U.S. Federal ‘Shutdown’ After Budget Stalemate

For the first time in 17 years, the U.S. federal government — with the exception of essential services — has shutdown following Congress’ failure to pass a spending bill.

The House and Senate had until 12.01am EST today [Oct 1] to pass the spending bill, however it failed to happen as House Republicans insisted the spending bill include anti-Obamacare amendments, while Senate Democrats were just as insistent that it did not.

Most American government workers are deemed “essential” and will keep working, but approximately 800,000 government employees will be furloughed and services will be suspended.

“Agencies should now execute plans for an orderly shutdown due to the absence of appropriations,” the Office of Management & Budget said in a note it sent to federal employees.

Democratic Sen. Bob Menendez, the chairman of the Senate Foreign Relations Committee, said the shutdown gives the United States a black eye.

“It is a dangerous message to the world,” he said. “We tell other nations that we believe that they have to have certain disciplines. And yet, we cannot ultimately keep our own budget open and the nation and its government functioning.”

The total economic impact is likely to be at least 10 times greater than the simple calculation of lost wages of federal workers, said Brian Kessler, economist with Moody’s Analytics. His firm estimates that a three- to four-week shutdown will cost the U.S. economy about $55 billion.

Travel services such as air traffic control are not affected, as they are deemed essential, however Bermudians traveling to the United States can expect to find national parks, national zoos and national museums closed as long as the ‘shutdown’ is in effect.

#AmericanRelations #WorldNews

Category: All