The potential government shutdown has potential economic impacts for North Carolina if it continues long-term. News 12 spoke with some experts at East Carolina University to learn about those impacts and what is causing disagreements in the Senate.
With zero hour fast approaching on a potential government shutdown, I talked with an economics and political science professor to learn about what spending is affected and what is at the center of this disagreement.
The Senate still has not reached an agreement on passing a House measure that would extend federal funding for seven weeks while lawmakers continue to work on the annual budget. If no deal is made, some federal workers may go without pay.
Economics professor for East Carolina University, Dr. Philip Rothman explains what spending would be affected by a government shutdown.
It’s also important to note that which type of spending will not be affected. So called mandatory spending on Social Security, interest on the debt for the Treasury Department, and I believe a whole bunch of social welfare spending will go through. But for employees of the federal government a large chunk of them will be formally furloughed and won’t receive pay now.
Workers on furlough would be on non-duty status until the shutdown ends. Others, such as air traffic control workers and active-duty military, will continue working with delayed pay.
East Carolina political science professor Dr. Jody Baumgartner explains the politics behind the shutdown. Democrats in Washington have drawn a line in the sand.
Tax breaks and tax credits that were passed under the Biden administration that make it easier for lower income families and individuals to get healthcare. Those tax credits are set to expire at the end of this calendar year, they want to see those extended.
Many federal offices may also be impacted by a closure, also national parks, but federal courthouses like the one behind me will be able to operate for a few weeks. News 12 will continue to provide updates on the looming government shutdown.