Particle.news
Download on the App Store
6 ARTICLES
·
3h ago

U.S. Government Enters Day 2 of Full Shutdown as Funding Standoff Drags On

Economists estimate the closure is shaving about $7 billion from the economy each week.

Image
Acting OMB Director Russ Vought speaks during a press briefing at the White House, Monday, March 11, 2019, in Washington. Vought has been nominated as OMB Director again.
Image
Image

Overview

  • Congress passed none of the 12 annual appropriations bills, prompting a full shutdown that halts many agency operations and furloughs nonessential federal employees.
  • Less than 12 hours into the lapse, the Senate rejected spending plans for a third time, paused for Yom Kippur, and plans to resume votes on Friday and Saturday.
  • The Trump administration has warned furloughs could become layoffs if the impasse continues, with OMB Director Russell Vought telling Republicans that Reduction-in-Force cuts could begin within two days.
  • Vought has begun freezing or cutting federal funding for selected projects, including withholding $18 billion for New York City infrastructure and scaling back climate-related spending in states Kamala Harris won.
  • EY-Parthenon estimates a $7 billion weekly hit and a 0.1 percentage point drag on GDP growth, while CBO figures show back pay for furloughed workers could cost about $400 million per day once operations resume, with the 2018–2019 shutdown costing roughly $3 billion in lost GDP.