Today, Senate leaders announced a deal to end the partial government shutdown and avoid a possible U.S. Default as soon as midnight. According to Tom Cohen, CNN, “President Obama praised the Senate leaders for reaching a compromise agreement to raise the debt ceiling and temporarily fund the government, and urged Congress to act quickly to approve the legislation.” The government shutdown started Tuesday, October 1, because the House and the Senate were unable to reach an agreement on a bill to fund the government, and time ran out according to Brad Plumer of the Washington Post.
Each year, the House and Senate are supposed to agree on the 12 appropriations bills to fund the federal agencies and set spending priorities. Congress has not kept current, so they have resorted to stopgap budgets to keep the government funded also, known as “continuing resolutions.” The last stopgap passed on March 28, 2013 and ended on September 30.
Federal employees were placed in categories as “essential” and “non-essential" during the government shutdown. The essential employees were those who protect life and property. Also, agencies that send out benefits and operation programs, and agencies with independent sources remain open. The IRS will continue to collect taxes but there may be a delay in audits and refunds. A list of agencies affected by the government shutdown can be found here.
With the shutdown entering its third week, it has spooked consumers and investors, which means the shutdown is costing the economy about 160 million per day, according to data released by global market research firm IHS. However, the greatest impact on the American economy will be if Congress doesn’t raise the nation’s borrowing limit by October 17. According to Treasury Secretary Jack Lew, “The government won’t have enough money to pay its bills and won’t be able to borrow more.” Huffington Post
The 10 states most affected by the government shutdown were 10) Hawaii, real estate 9) Idaho, small business loans 8) Colorado, federal loans and small business loans 7) New Mexico, most federal employees per capita 6) Maryland, second largest federal employees per capita, federal contracts, and real estate 5) Main, the most veterans per capita, SBA loans, social security funding, and real estate 4) District of Columbia, most affected federal employees 3) Alabama, forth most social security funding, and eighth in FAFSA applications per capita 2) Alaska, SBA loans, most veterans per capita of any state 1) Virginia , federal employees, federal contracts, and second most veterans per capita. USA Today