The US federal government is inching closer to a shutdown on October 1 if Congress hits a no-deal situation on the funding legislation for the next fiscal year. This would mark the country's fourth partial shutdown in the past decade.
What is a shutdown in the US?
Every year Congress passes legislation to fund the federal government for the next fiscal. Failure of legislators, however, to conclude the process on time results in a shutdown of the government. The next fiscal for the US commences on October 1, and the Congress standoff persists with pending approvals for necessary funding bills.
Impact of a shutdown
If the shutdown does happen, here's how it will affect Americans' daily lives:
Military
Service members will continue reporting for duty but will not get paid during a shutdown. Civilians serving the Department of Defense will likely be temporarily discharged, according to an NPR report quoting White House National Security Council spokesperson John Kirby.
Certain Pentagon activities, like operational planning and military recruitment, will also be put on hold, it is learnt from the report.
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Air Travel
As per a Reuters report, U.S. Transportation Secretary Pete Buttigieg said on September 27 that a partial government shutdown could disrupt air travel, and 1,000 air traffic controllers in training might be temporarily discharged.
In the past too, federal government shutdowns have caused significant delays and longer wait times for travelers, the report further noted quoting the White House.
The US Travel Association projects a partial shutdown to cost the country's travel economy $140 million a day.
Loan Services
As per a CNBC report, 90 percent of staff at the U.S. Department of Education may be temporarily suspended. Besides, borrowers who call the Education Department enquiring about their bills will face a difficult time getting answers, said Emerson Sprick, an economic analyst.
In The Long Run
The shutdown and disruptions are anticipated to adversely affect the US economy. There will be a likely dip in consumer confidence, causing widespread cutback on spending, and investors are also expected to maintain caution. The stock market too will be volatile during this period.
With Agency inputs
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