Another real threat of federal government shut down
(The latest update on what a federal government shut down at midnight on April 8 would mean along with links to stories from numerous media outlets can be viewed here).
The federal government faces the threat of another shut down this Friday if Congress does not approve a budget for the remainder of this fiscal year. The most recent Continuing Resolution (the sixth since the beginning of the fiscal year last October), is set to expire on April 8. President Obama called together leaders of the House and Senate on Tuesday and again on Wednesday to try to broker an agreement.
Congress had tentatively agreed to a $33 B cut in this fiscal year’s budget that would have to be taken between now and September 30. However, that cut was about half of the $60 B that House Republicans supported and about $30 B more than the Senate Democrats wanted. In addition, even though the budget reduction amount was specified, there was no agreement on how the cuts would be taken.
If the House and Senate do not agree on a plan for spending through the remainder of the year, then non-essential governmental services will shut down after midnight, April 8. A federal shutdown will disproportionately affect low income families in America specifically by limiting or delaying access to the federal government’s largest anti-poverty program, the Earned Income Tax Credit.
In the meantime, House Budget Committee Chair, Paul Ryan (R-Wisconsin)has introduced a budget proposal that will come to the floor this week. The proposal cuts trillions of dollars from the federal budget over the next decade by slashing programs such as Medicare and eliminating the Affordable Care Act. The budget proposal can be viewed at:
Full Budget Resolution: http://budget.house.gov/UploadedFiles/PathToProsperityFY2012.pdf
House Budget Committee’s Summary: http://budget.house.gov/UploadedFiles/KeyFactsSummary.pdf