|Update on Government Funding for Fiscal Year 2022|
SUMMARY: Government funding set to expire on September 30 and the approaching date for reaching the debt limit necessitates quick congressional action.
With government funding set to expire with the beginning of the new fiscal year on October 1, House and Senate leaders are planning to consider a Continuing Resolution (CR) that would extend funding until December 3 or 10. The Senate returned to Washington, DC this week and the House is scheduled to return next week, leaving less than two weeks to prevent a shutdown. To date, the House has passed 9 of the 12 appropriations bills. The Senate has not passed any.
While passage of a clean CR does not appear to be viewed as controversial, the possibility of adding an increase to the debt limit to the CR could complicate matters. In August, 46 Republican Senators signed a letter stating that they would not vote to increase the debt limit. Last week, Treasury Secretary Janet Yellen sent a letter to Congress stating that the federal government will run out of borrowing authority sometime in October. Without an agreement to either raise or suspend the debt ceiling, the Treasury will be unable to continue paying the nation’s bills. Once the government hits the debt ceiling and exhausts all available extraordinary measures, it is no longer allowed to issue debt and soon after will run out of cash-on-hand. At that point, given annual deficits, incoming receipts will be insufficient to pay millions of daily obligations as they come due. Therefore, the federal government will have to at least temporarily default on many of its obligations.
As Congress and the White House continue to work on the outstanding funding issues, NTEU will continue to advocate against a shutdown and for an increase to the debt limit. I will keep you updated on these developments. For more information click here.