Government Begins Preparing for Partial Shutdown

WASHINGTON — Federal agencies got their first concrete indication the threat of a looming government shutdown is getting serious on Friday, as the White House Office of Management and Budget began circulating its guidance to those who will be impacted if lawmakers fail to reach a deal on new spending by March 1.

As previously reported by The Well News, Congress passed a two-step or “laddered” plan in January to keep the government funded for several weeks so that talks on a longer-term spending plan could continue.

Under the plan advanced by House Speaker Mike Johnson, R-La., Congress extended funding through March 1 for parts of the federal government including the Departments of Agriculture, Energy, Housing and Urban Development, Transportation and Veterans Affairs.

Anything not subject to that spending deadline was funded through March 8.

Though bipartisan and bicameral talks are ongoing, House Republicans have sharp disagreements about the best path forward with hardliners wanting to see any spending deal contain provisions that would be anathema to Democrats.

As a result, lawmakers are effectively at an impasse over spending, and for the fourth time since Congress returned from its summer recess last September, they’re staring down an imminent funding deadline with much negotiating yet to be done.

Though Congress does not return to Washington until Monday, there is talk that a spending package of some sort will likely be rolled out sometime late Sunday.

If so, it is expected to cover many of the agencies that would be adversely impacted by the expiration of the March 1 deadline.

A deal on the rest by the March 8 deadline currently appears less likely. Among the scenarios reportedly being discussed is the passage of another continuing resolution, that would keep the government open through March 22.

The OMB’s circulation of its guidance to senior officials at executive branch departments and agencies is a mandatory step in preparing for a partial government shut down. 

Essentially, it’s the White House’s way of telling them they need to review and if necessary, update their shutdown plans related to “non-essential government functions” within the next seven days.

The OMB guidance also includes a draft “communications template” for keeping employees in the loop on the status of appropriations.

An excellent resource on the causes, processes and effects of a government shutdown can be found here.

Each department and agency has its own contingency plan should lawmakers fail to reach an agreement on either a long-term spending plan or a continuing resolution.

These contingency plans spell out how the department or agency will wind down its operations, which operations are deemed “essential” and which would be put on hold. They also indicate how many employees will be furloughed and how many others would continue to work, but without pay.

For example, the Department of Agriculture expects to furlough about 59% of its approximately 97,000 staff members during a shutdown. 

However, nearly all of its food safety and inspection services workers would remain on the job, and its two main nutrition assistance programs — the Supplemental Nutrition Assistance Program, or SNAP, and the Special Supplemental Nutrition Program for Women, Infants, and Children, also known as WIC — would continue operating, at least in the short term.

On the other hand, the moment a shutdown begins, the department would be unable to process new rural development loans or grants.

Another example, and one that illustrates how departments are impacted in vastly different ways by a shutdown, is the Department of Veterans Affairs.

Its contingency plan is premised on the notion that veteran health care should not be impacted if lawmakers fail to do their job and keep the government open.

As a result, the VA has taken steps to ensure that about 96% of its staff will continue to work during the shutdown.

But that doesn’t mean the department will be completely open for business. The GI Bill Hotline, available for veterans to call for support on education and training questions, will be temporarily shut down, as will the department’s Transition Assistance Program, which helps service members and their families transition from military to civilian life.

Dan can be reached at [email protected] and at https://twitter.com/DanMcCue