After a bipartisan agreement to fund the federal government until March 14 fell apart earlier this week, the House failed to advance a narrower measure funding the government. For passage, House rules required a two-thirds majority, though it did not sustain a simple majority.
As of this writing on Friday morning, a federal government shutdown appears likely because even if an agreement comes together, legislation will need to be drafted, pass both chambers according to rules that may require a larger threshold of votes, and be signed by President Biden.
A federal government shutdown may stop, among other programs, discretionary formula grants to municipalities. During past federal shutdowns, a wide range of services were affected, including public assistance programs, the closing of national parks, the reduction of some food safety programs, the reduction in access to some veterans’ programs, and the inability to process federal housing and small business loans. It may also affect FEMA's natural disaster cleanup efforts.
As a reminder, the federal fiscal year begins on October 1. A short-term continuing resolution was passed by Congress and signed by the President to fund the government through December 20.
We will continue to monitor the situation and report accordingly.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.