By Ray Birch
WASHINGTON—As the government shutdown drags into another week, its effects are beginning to bite—federal employees are missing their first paychecks, credit unions serving military families are bracing for financial strain, and lawmakers in Washington remain deadlocked, trading quiet negotiations for public posturing as the standoff shows no sign of ending.
“The government shutdown is beginning to have a more tangible impact as some federal employees are missing their first paychecks this week,” noted Defense Credit Union Council Chief Advocacy Officer Jason Stverak. “This is particularly significant for many of our defense credit unions, which serve large numbers of military personnel and federal workers. The next major pay date for servicemembers is Oct. 15, and we remain hopeful that Congress will come together before then to pass a funding measure—whether a short-term or longer-term continuing resolution (CR)—to keep the government operating.”
Until that happens, America’s servicemembers, veterans, government employees, and their families—many of whom are members of credit unions across the nation, not just in the D.C. area—continue to face growing financial uncertainty as Congress has yet to fulfill its responsibility to keep the government running, Stverak said.
The House remains in its district work period this week, so members are not in Washington. The Senate, however, is in session and is expected to vote tonight on the House-passed “clean” continuing resolution, which would extend funding through Nov. 21, Stverak said.
Jason Stverak
“Currently, three Democrats have joined Republicans in supporting that measure, along with Senator Rand Paul (R-KY), who has sided with Democrats. A total of eight Democratic votes will be needed to move the measure forward. As of now, there’s been little progress, but we’ll continue to monitor developments closely,” Stverak said.
America’s Credit Unions Senior Vice President of Government Affairs Greg Mesack noted that all signs unfortunately point to a medium- to long-term closure.
“Both sides are digging in,” Mesack said.
Republicans are pushing for what they call a “clean” CR, which has already passed the House and moved to the Senate. Democrats, meanwhile, are insisting on negotiations over healthcare subsidies tied to the Affordable Care Act. The two parties continue to go back and forth, but so far, neither side has gained enough ground to reach an agreement.
With no progress on legislation, the House has adjourned for the week. House leaders have said they will only call members back once a deal is reached among Senate Minority Leader Chuck Schumer (D-NY), House Speaker Mike Johnson (R-LA) and the President, Mesack said.
Greg Mesack
Over in the Senate, work continues, but action is largely procedural as negotiations play out behind closed doors, Mesack said.
“There are ongoing negotiations in the Senate right now. While you may not see much public movement from the top leaders, there’s quite a bit of behind-the-scenes discussion among rank-and-file members,” Mesack said.
Mesack said that many senators recognize the shutdown can’t go on indefinitely.
“Lawmakers, such as Senator Mike Rounds (R-SD), and others have been quietly talking across the aisle, looking for a path forward. Any potential agreement will, of course, need the blessing of both party leaders and ultimately the President, but members on both sides are engaging and understand the urgency of finding a solution,” Mesack said.
Mesack noted there’s also an acknowledgment that neither side can have everything it wants.
Democrats are pushing for some form of healthcare subsidy discussions, while Republicans continue to insist on a clean continuing resolution. Both sides know they’ll need some kind of compromise—perhaps passing a short-term CR first, then addressing healthcare or spending priorities in a follow-up package, Mesack said.
“Realistically, the shutdown will likely continue for at least another week,” concluded Mesack. “Negotiations are happening—but for now, they’re outside the press spotlight.”