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What to know if the government closes on Oct. 1

What to know if the government closes on Oct. 1

Government Shutdown Looms as Parties Remain Divided

In Washington, tensions are high between Democrats and Republicans as a potential government shutdown approaches later this week.

Democratic leaders in Congress are against the proposed suspension law that aims to fund the government at existing levels until November 21. Their main point of contention? The failure to extend subsidies for the Affordable Care Act, which are set to expire at the end of 2025.

Meanwhile, Senate Majority Leader John Thune (R-SD) and House Speaker Mike Johnson (R-La.) are advocating for grant discussions to be postponed. They argue for a temporary funding solution to be passed before the end of September.

Johnson noted on CNN’s “State of the Union” that discussions around Obamacare subsidies shouldn’t happen while the government is at risk of shutting down—such debates need to be resolved by the year’s end.

However, the proposed bill couldn’t overcome the Senate’s 60-vote filibuster on September 19, leading Johnson to send House members back to their districts for the Rosh Hashanah holiday.

This situation leaves Senate Minority Leader Chuck Schumer (D-NY) in a tough spot, needing to navigate the House GOP’s so-called “clean” resolutions to maintain government funding.

If no agreement is reached, the government could cease operations after 11:59 PM on Tuesday.

Who Will Get Paid During a Shutdown?

During a government closure, essential Congressional staff, including members of Congress, political appointees from the Trump administration, postal workers, and air traffic controllers will still receive pay.

Federal benefits like Social Security, Medicare, Medicare, and the Supplemental Nutrition Assistance Program (SNAP) will continue without interruption. It’s important to note that military personnel and non-essential federal employees will receive retroactive pay once the situation resolves.

For many non-essential federal workers, a partial shutdown might mean a brief halt in work, but they are likely to return to their jobs as soon as operations resume.

Concern Over Permanent Job Losses

Office of Management and Budget Director Russell Vought has indicated that if a shutdown occurs, thousands of non-essential personnel risk permanent layoffs.

In a recent memo, Vought directed agencies to draft plans for a Reduction in Force (RIF) affecting all non-essential programs that wouldn’t be protected by shutdown laws.

“It’s crucial for the administration to prepare for a shutdown if Democrats push for one,” Vought stated in the memo. He also mentioned that once the 2026 Expenditure Budget is approved, the RIF would need adjusting to retain enough staff for required functions.

These staff reductions could take effect within 60 days, likely after any shutdown has ended.

Vought’s memo has placed Democrats like Schumer and House Minority Leader Hakeem Jeffries (D-NY) in a particularly difficult position, especially given their previous comments about the repercussions of government closures on workers.

Vought stressed that the impact of a shutdown is significant: “Over 1 million active-duty service members may face delays in their pay. Additionally, small businesses will struggle to secure financing, home buyers might not get loans, and disruptions could ripple through the supply chain, affecting American families.”

How Long Might a Shutdown Last?

In March, Schumer faced criticism from the left of his party for voting to avoid a government shutdown. This time, the pressure is even greater for him to hold firm.

Previously, he expressed that letting Trump gain more power was a significantly worse outcome. Yet, he’s also not completely ruling out any concessions in this current climate.

“I really hope it doesn’t reach that point,” Schumer commented, referring to coalition dynamics. “The American public seems largely in our favor.”

“Ultimately, we need to negotiate a better deal than what’s been offered so far,” he concluded.

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