Wednesday, January 20, 2021
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Federal Government Stalemate Continues

The partial federal government shutdown now enters the 4th week and the second missed paycheck for government workers. The House and the Senate continue passing legislation to open the shuttered government; however, neither side actually appears to be communicating between the chambers or the members within the chambers. The Senate brought up test votes this week to pass President Trump’s proposal from last weekend and it failed to get enough votes to debate the bill. The house is planned to attempt one more time Friday afternoon to lay out a proposal providing for $5 billion for border security but specifically states it cannot be used to build a wall.

The effects of the partial government shutdown will become more evident in the coming weeks as departments have exhausted their reserves and other funds available to keep their departments open.

  • Universities across the country are fronting the money to continue the federally funded research. In some cases these facilities are looking at millions of unexpected cash outflow due to the grant funds not showing up. In 2016, research from National Science Foundation as well as the United States Department of Agriculture sent more than $8 billion in research funds to the academic world for study.
  • The federal court systems have stated over the last couple of weeks, they will run out of money at the end of January and will be unable to continue operations. The country has 94 district courts and 13 courts of appeals. The courts have already suspended payments to attorneys appointed to represent defendants unable to hire their own attorney.
  • The United State Chamber of Commerce is reporting contractors have lost approximately $2.3 billion so far with the government shutdown. There are more than 41,000 small contractors who work for the nine shuttered agencies.
  • The Food and Drug Administration (FDA) will also begin to feel effects. The shutdown is keeping the FDA from reviewing new drug and medical device applications and conducting certain inspections of feed and medical product facilities.

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