The US Government is likely to be shutdown at sharp 00:01 AM on 1 October due to the failed Congress’s federal budget negotiation as GOP hard-liners still demand for a deeper cut.
US federal agencies need the funding through 12 different spending bills from the president and congress. The overall process is time consuming so usually, they’ll resort to use the Continuing Resolution (CR) as a temporary patch. Those unpaid will slated to receive the backpay once the funding law has been passed.
According to CNBC, if the funding legislation won’t pass in time, all of non-essential US federal agencies will stop their work as there’s no budget to run. This includes roughly two million federal employees and two million in military, which are 60% in Defense, Veterans Affairs and Homeland Security department. Also, federal workers in Transport Security to Postal and other government services, such as clinical trials, firearm and passport.
Furthermore, the tourism business around national parks could lose a daily $140 million, estimated by US Travel Industry Association. Investment bank, Goldman Sachs estimated the shutdown will impact 0.2% on US economic growth as well.
