This fall, the battle over funding the federal government will dominate the Washington news cycle. All eyes are on the September 30th deadline and whether Speaker McCarthy will be able to find enough votes to pass a Continuing Resolution to keep the government open on a short-term basis, giving lawmakers more time to negotiate a comprehensive deal to fund the government.
Senators Schumer and McConnell are urging bipartisan cooperation. But the truth is even with cooperation and valiant effort, there isn’t enough time to negotiate, write and pass a deal with the House before the deadline.
Speaker McCarthy has even worse problems on his side of the Capitol. He needs to thread the needle to get enough Democrats to vote with him to pass a deal and fend off threats to his speakership.
A Continuing Resolution is the only option to avoid a government shutdown in three weeks. Even if a shutdown is avoided this month, the threat remains until a broader deal is reached.
Businesses should consider the impact of a shutdown on their operations as non-essential government services may be delayed or stopped altogether. Economic data may not be available on time. Grant applications may be delayed. Expect major delays in the security line at the airport, customs, passport applications and fewer food safety inspections.
A government shutdown isn’t just inconvenient, it can delay the flow of business, lower GDP and cost the government money.