US faces shutdown threat

Synopsis

The Republicans and Democrats in Congress are currently in a dispute over funding the federal government. House Republicans have passed a bill to extend funding for another four weeks. However, Senate Democrats want the funding deal to include protections for approximately 800,000 individuals brought to the U.S. illegally as children. If an agreement is not reached, the federal government risks a shutdown, which could halt certain government functions and require staff to stay home. The most recent shutdown occurred in 2013, during Barack Obama's presidency. While shutdowns can be politically contentious, historical data suggests they have a limited economic impact. For instance, during the 2013 shutdown, the economy still grew at a robust annualized rate of four percent in the final quarter. The government is preparing contingency plans to mitigate the effects of a potential shutdown on public services across the U.S.