The US government shutdown has been triggered, which may imply that key services will pause, hundreds of thousands of workers will face furloughs or unpaid work, and national priorities will feel the strain until a deal is reached, according to a CBS News report.
Why does a shutdown happen, and what continues?
A government shutdown occurs when Congress does not approve the annual funding bills or a continuing resolution by October 1. Without legal authority to spend, many agencies must pause operations.
However, not all services stop. Programs deemed essential, such as military defense, air traffic control, border security, and law enforcement, continue to operate, even if workers go without immediate pay. Social Security benefits and Medicare are also likely to continue, as their funding is mandatory and not tied directly to annual appropriations.
Impact on workers, services and economy
According to a Fed News Network report, roughly 750,000 federal workers are expected to be furloughed, while others in essential roles may be required to work without pay until funding returns. Many non-essential services will be suspended: national park visits, scientific research, regulatory reviews, public health projects, and agency administrative tasks could halt.
In the health sector, 41% of Health and Human Services staff may be furloughed, affecting the CDC and NIH operations significantly. For immigration, enforcement will likely continue, as agencies like ICE are classed as essential.
Economically, shutdowns reduce consumer confidence, delay government contracting, slow permitting and licensing, and weigh on financial markets. Firms dependent on federal programs may face payment delays.
Credit rating agencies are sounding alarms: Europe's Scope warns that the shutdown could negatively affect the U.S. credit rating, as political deadlock undermines fiscal stability.
In short, a government shutdown triggers uncertainty. The longer it lasts, the greater the fallout for public services, workers, and economic stability, until Congress and the President reach an agreement.
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