Government Shutdown Threat Finally Put to Rest — For Now – NerdWallet

Earlier at this time, after six months of squabbling and kicking the can down the street, Congress lastly handed its last spending bundle that may fund the federal government for the present fiscal 12 months and forestall a partial shutdown.

Roughly 70% to 80% of the federal government was headed towards a shutdown after midnight. The opposite 20% was already accredited in a $460 billion spending bundle earlier this month.

Every fiscal 12 months, Congress should approve 12 key appropriations to fund federal companies. The 2023-24 fiscal 12 months started on Oct. 1.

The appropriations accredited at this time embrace funding for Well being and Human Companies together with the departments of State, Justice, Protection, Commerce and Labor. About half of the bundle goes towards Homeland Safety. The 1,000-page spending invoice was launched on Thursday. The Home bypassed its rule that sometimes requires 72 hours between a invoice’s introduction and voting to approve the bundle on Friday morning. The Senate accredited it shortly after the midnight deadline handed.

Had Congress didn’t approve the appropriations or cross a stopgap, a part of the authorities would have shut down for greater than a few hours. That may imply some federal employees would have been furloughed, whereas others would have needed to proceed working with out pay. For instance, the Inside Income Service (IRS) and the Transportation Safety Administration (TSA) would nonetheless be technically useful, however many staff could be furloughed, which may lead to service delays. However packages like Social Safety, in addition to Medicare and Medicaid, would proceed uninterrupted.

As a refresher, final 12 months a fiercely divided Congress handed two persevering with resolutions that prolonged funding for the 2023-24 fiscal 12 months at 2022-23 ranges so authorities operations wouldn’t be disturbed. However the persevering with decision in November break up the appropriations (roughly 80% and 20%) and set two separate deadlines: Jan. 19 and Feb. 2.

The Jan. 19 deadline was for the departments of Transportation, Housing and City Growth, Agriculture, and Vitality. The Feb. 2 deadline was for the departments of State, Justice, Protection, Commerce, and Labor, in addition to Well being and Human Companies.

Earlier than that first Jan. 19 deadline hit, Congress handed a 3rd persevering with decision that pushed again each deadlines: Jan. 19 to March 1, and Feb. 2 to March 8. As soon as once more a shutdown was prevented, however not for lengthy. On March 1, the deadlines have been moved once more: March 1 to March 8, and March 8 to March 22.

On March 8, Congress lastly reached a partial settlement and despatched six appropriation payments to President Biden to signal. These appropriations fund about 20% of the federal government, together with the departments of Transportation, Housing and City Growth, and Agriculture, in addition to navy and veterans packages. The bundle additionally included spending for vitality and water growth and associated companies.

The federal government is now totally funded for the 2023-2024 fiscal 12 months. However the breather will likely be brief: In six months, within the thick of election season, the method to approve appropriations for the subsequent fiscal 12 months will begin another time.

(Photograph by Chip Somodevilla/Getty Pictures Information through Getty Pictures)