Feds Narrowly Avert Another Government Shutdown… for Now

President Donald Trump on Friday signed a temporary spending bill to avoid another government shutdown. The short-term spending measure, known as a continuing resolution, will keep the government running through November 21, 2019.

The latest continuing resolution keeps spending at current levels and heads off a lapse in funding that would have occurred at the end of the month.

According to Federal News Radio:

The Senate passed the CR Thursday with bipartisan support and a 82-15 vote. The House cleared the bill last week. The president had to take action by Monday, Sept. 30, the fiscal year deadline.

While this continuing resolution temporarily ensures that the government will remain open, it signals that lawmakers are, once again, unable to agree on a series of year-long spending bills before the ones from the previous year lapse at the end of September.

A similar situation led to the longest government shutdown in U.S. history earlier this year. That impasse, which lasted 35 days, had a significant impact on federal employees, as well as related segments of the Maryland and regional economies.

As previously reported on Conduit Street, approximately 172,000 Marylanders impacted by the 2019 partial government shutdown missed out on an estimated $778 million in wages, resulting in $57.5 million less in state and local income tax withholding and $2.1 million less in sales tax collections. While furloughed federal workers received back pay once the shutdown ended, it’s unlikely that federal contractors were able to recoup lost wages.

In response, the Maryland General Assembly this year passed the Federal Shutdown Paycheck Protection Act, which provides for no-interest loans to essential government employees in the state who must report to work without pay.

Stay tuned to Conduit Street for more information.

Useful Links

Federal News Radio: Trump Signs Continuing Resolution, Averting Government Shutdown Until Nov. 21

Previous Conduit Street Coverage: Federal Government Shutdown: State, Local Governments Feel the Pinch

Previous Conduit Street Coverage: Maryland Counties Rally Resources for Furloughed Workers

Previous Conduit Street Coverage: “Federal Shutdown Paycheck Protection Act” First Bill Signed into Law

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