Industry News

The Government May Experience Their Second Shutdown in Three Years

September 23, 2015


        With less than two calendar weeks left, Congress has a very small window of opportunity to avoid the consequences that would accompany a government shutdown. This would mark the second closure in three years, bringing similar consequences to the 2013 closure. The previous shutdown cost the U.S. $24 billion and reduced 4th quarter GDP growth by 0.6 percent. In order to avoid a repeat, the government must reach a budget deal or establish a resolution before October 1st that would delay the shutdown. 
        There are several outstanding issues standing between Congress and a new budget deal. Some of which include controversy over highway policy, military and domestic funds, and the debt ceiling. Planned Parenthood, which was recently defunded by the House, may be the largest hurdle that Congress will face on the path to pass a budget deal. Democrats have stated that they will not accept a budget that defunds Planned Parenthood. Yet, Republicans have been working hard to cut government spending to the women’s health care group after videos surfaced regarding the sale of fetal tissue. President Obama expressed his frustrations towards this controversy at a recent business roundtable. He stated that the Republican’s would be jeopardizing the U.S. and global markets if their insistence on eliminating Planned Parenthood leads to a shutdown. Many lawmakers share Obama’s frustrations and are taking several actions to prevent a closure. 
        The Senate Appropriations Committee recently introduced a stop-gap funding bill that would extend federal government’s funding until December 11th. This Resolution would provide funding of $1.017 trillion for the next two-and-a half months.  While the Senate is maneuvering to keep the government open, House Representatives are also pushing for change. Approximately 80 Democrats are urging Speaker John Boehner to allow the House to keep working until Congress can pass a new measure, as the House is currently only in session for five more days. “The American people deserve to know that their elected representatives are working around the clock to avoid another self-inflicted Washington wound on our national and local economies,” the Democrats wrote. Officials are hoping that a continuing Resolution will allow Congress more time to deal with the controversial issues at hand. 

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