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Week ahead: Shutdown takes hold

Week ahead: Shutdown takes hold
© Greg Nash

Republicans and Democrats were unable to reach a deal on passing a spending bill before funding for the federal government expired at midnight Friday.

The House had approved a monthlong funding bill on a largely party-line vote. But Senate Democrats opposed the measure because it did not include protections from deportation for so-called Dreamers, immigrants brought to the country illegally as children.

Republicans tried to ramp up pressure on the Democrats, noting that the House-passed short-term bill also extended funding for the Children's Health Insurance Program (CHIP) for six years and would delay three unpopular ObamaCare taxes.

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But Democrats demanded assurances on immigration reform. They hoped that by taking a hard line, they could force GOP leaders to the negotiating table on immigration and raising discretionary spending caps.

Over the weekend, the blame game heated up and both sides appeared to dig in. A bipartisan group of senators, though, is pushing their own plan to reopen the government.

White House Office of Management and Budget (OMB) Director Mick MulvaneyMick MulvaneyTrump says he may lower corporate tax rate to 20 percent if reelected Is Social Security safe from the courts? On The Money: House panel pulls Powell into partisan battles | New York considers hiking taxes on the rich | Treasury: Trump's payroll tax deferral won't hurt Social Security MORE said Friday that the shutdown won't be as bad as 2013. He accused the Obama administration of taking actions to make the shutdown worse for the public.

Mulvaney said "the Obama administration weaponized the shutdown in 2013" for political purposes by closing popular attractions like national parks. He said the Trump administration isn't planning to do the same.

Government shutdowns are rare, especially when one party controls both chambers of Congress and the White House. The last shutdown was in 2013 and lasted 17 days.

On Sunday, Mulvaney said the shutdown could last more than a week.

During the shutdown, major federal responsibilities, like sending Social Security checks and operating the military, are continuing. Each federal agency has a shutdown plan, written in consultation with the OMB, and the administration would have some wiggle room in what it does.

In general, government operations and employees deemed "essential," like those in the military and law enforcement, will continue to report to work. It's a label that applies to more than half of the 2.1 million or so non-postal federal employees.

Those workers would still get paid, but not until after the shutdown ends.

During the 2013 shutdown, 850,000 individuals were furloughed per day, according to the OMB.

If the government doesn't shutdown, the Senate is slated to be in session in the coming week.

If lawmakers reach a deal to reopen the government, they can turn their attention back to some finance-related matters.

The Senate Banking Committee is planning to hold a confirmation hearing for three important financial regulatory nominees. The panel will grill Jelena McWilliams, President TrumpDonald John TrumpJudge rules to not release Russia probe documents over Trump tweets Trump and advisers considering firing FBI director after election: WaPo Obama to campaign for Biden in Florida MORE's nominee for chair of the Federal Deposit Insurance Corporation; Marvin Goodfriend to be a governor of the Federal Reserve board; and Thomas Workman to be the Financial Stability Oversight Council member representing the insurance industry.

 

Recap the week with Overnight Finance:

Tuesday: Lawmakers see shutdown odds rising | Trump calls for looser rules for bank loans | Consumer bureau moves to revise payday lending rule | Trump warns China on trade deficit

Wednesday: Shutdown drama grips Capitol | White House backs short-term spending bill | Mulvaney begins consumer bureau shake-up

Thursday: Latest as shutdown looms | House Freedom Caucus may have deal with GOP leaders | Senate Dems look to force McConnell to negotiate | Whip list — Tight vote in Senate | Trump baffles GOP with tweet

 

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