As the shutdown approaches 25 days, some folks have felt no impact. Some have felt moderate impacts. Some are massively impacted because they are not getting a paycheck and they are furloughed. Our lobbyist in Washington DC put together this list of impacts late last week (Jan. 10th):
"Subject: Impact of the
Government Shutdown
...the continuing impacts of the
shutdown are detailed below:
Immigration
With no funding for the
Department of Homeland Security, immigration officials and border
patrol officers are among those furloughed or working without pay. While judges and clerks are
home, asylum cases are continuing to pile on to an already backlogged system,
reaching over 1 million on the docket. Neither are companies able to utilize
the E-Verify system to ensure they are hiring documented works, as the service
are unavailable until the funding crisis is resolved. This issue means many
companies, such as manufacturing firms who hire primarily immigrants, are scrambling
to find workers.
Meanwhile, unpaid agents are
taking in more than 2,000 migrants per day, many of them families and children,
and have nowhere to detain them. This has led to the undocumented immigrants being
released into border cities. There are also many asylum seekers coming to the
border crossing with influenza, bronchitis, and other infectious diseases. Two
children have already died in U.S Border Control and Protection custody, leading
to extreme tension and concern over welfare.
Of the 245,000 employees at DHS,
only about 14% will be paid. 179.000 will work unpaid, while
32,000 are furloughed. The 17,000 employees at the U.S Citizenship and Immigration Services continue to process application, as the agency derives much of its funding from fees required for asylum requests and other filings.
32,000 are furloughed. The 17,000 employees at the U.S Citizenship and Immigration Services continue to process application, as the agency derives much of its funding from fees required for asylum requests and other filings.
Cybersecurity
Among the government workers
furloughed are those at the newly created Cybersecurity and Infrastructure
Security Agency (CISA),
which replaced the National Protection and Programs Directorate (NPPD) at the
end of last year. With 43% of the staffers furloughed, those remaining are busy
keeping up with security operations, preventing the agency from growing and
causing it to lose its “critical momentum” as it begins its 2 year plan. The
goal of the agency was to find better ways to address both cyber and physical
threats, but it was still in the beginning stages when funding lapsed. Advisors
for the agency are concerned that the short-staffing will be seen by enemies of
the state as an opportunity to launch an attack. Officials in the agency are
also concerned that the lack of pay will cause cybersecurity experts to quit
and pursue private sector jobs, where they would be making significantly higher
salaries. The current gap in the cybersecurity workforce is already 498,000 in
the U.S alone.
Small-businesses,
Loans, and Licenses
The Small Business Administration
stopped processing new loans on December 22nd,
leaving many business owners and start-ups in limbo as they await dollars to
buy new property or to simply keep operations running smoothly. Without
funding, small businesses are also unable to pay their contractors, who may
then move on to other projects.
Along with SBA loans, private
companies can’t get paperwork processed for initial public stock offering, as
the Securities and Exchange Commission also has a much smaller crew than
normal. Farmers, too, are feeling the sting, as they are unable to get
Agriculture Department loans to offset the effects of the trade war.
While ports were deemed essential
and are running fairly smoothly, exporters of high-tech commercial and military
products must have government export licenses, creating a backlog of shipments.
Typically, the Commerce Department’s Bureau of Industry and Security approves
around 600 actions a week.
Financial institutions are unable
to process transactions with actors covered by U.S sanctions without Treasury
Department approval; while these, too, are routine requests, many banks find
their paperwork pending.
Concern is mounting that the
shutdown is hurting business confidence, and J.P Morgan has estimated that the
U.S. economy is losing more than $1.5 billion a week due to the shutdown. Fitch
Ratings also warned Wednesday that an extended shutdown might damage the
country’s Triple-A credit.
Student Loans and
Grants
Some
of America’s most in need students have been unable to pay their tuition bills because the IRS cannot respond
to requests for tax transcripts, which are needed for their financial aid
applications. Some students are able to import their tax records directly to
the applications, but the majority do not qualify and must utilize the phone or
mail options, a process that takes two weeks.
Other disruptions include Pell grants, student loans, parent PLUS loans,
and other forms of financial aid being blocked. These issues could prevent
students from spring class enrollment.
Department of
Transportation
Construction
and transportation projects have been stopped or delayed nationwide, as state officials
worry about federal assistance during the shutdown. An extended lack of funding may also lead to
an inability to fund current operations and maintenance of existing
transportation system. States such as New Mexico and Montana gain 85% of their
transportation funding from federal programs; typically this funding is
available on the start of the fiscal year, but the government has been running
on a now expired Continuing Resolution. Only a quarter of the $44 billion for
highway projects and $11 billion for federal transit program were paid in
October. Projects will likely only remain on track if the resolution of the
shutdown comes in the next few days.
Entitlements
The
USDA will run out of funding for the Supplemental Nutrition
Assistance Program (SNAP) and Special Supplemental Nutrition Program for Women,
Infants and Children (WIC) if the shutdown continues into February. This will
effect around 39 million people. The shutdown has also halted
federal spending on the Temporary Assistance for Needy Families (TANF) Program.
However, benefits will continue in the
short-term,
funded by through a mixture of unspent federal funds and state
"maintenance of effort" (MOE) funds.
Housing
The
Department of Housing and Urban Development will not be able to renew contracts
with contracted private apartment building owners to provide Section 8
subsidies for subtenants. This will affect approximately 1,150 buildings. HUD has set aside payments
through March for the non-expired contracts, but have encouraged the others to
use reserve funds. HUD set aside funding through February for local housing
authorities that provide Section 8 vouchers. Those attempting to buy houses
have also been left in limbo,
as the USDA and Federal Housing Administration do not have the staff to approve
mortgages. However, Single Family FHA loans, as well as VA loans, will continue
to be funded throughout the shutdown, albeit with delays.
National Parks
The
Department of Interior is continuing to allow visitors to National Parks across
the country; however, rangers and employees providing basic services have been
furloughed, creating worry over both the safety of Park visitors and the lasting impacts created by the lack of
sanitation and park upkeep. In order to address these issues, some Parks have
begun pulling funds from their entrance fees in order to employ a limited
staff. This has created controversy surrounding not only the legality of the
actions, but also the negative effects on Park projects down the line.
Tax Payments
Travel and Security
TSA
agents, who are considered essential and therefore working unpaid throughout
the shutdown, have begun calling in sick at much higher rates, sparking
worries of understaffing, long lines, and airport security."
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