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What will this government shutdown shut down? Social Security and the IRS keep going; SBA loans and some food and safety inspections do not

You won’t be able to ignore a government shutdown. From delayed business loans to slower mortgage applications and postponed food inspections, the effects…

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A shutdown's effects will be broad and deep. gguy44/ iStock / Getty Images Plus

The U.S. is moving toward a government shutdown. House and Senate appropriators are divided on spending levels, policy riders and additional items, such as support for Ukraine.

As a political scientist who studies the evolving budget process, as well as brinksmanship in Congress, it is clear to me that this episode prompts many important questions for how the U.S. is governed.

There’s the larger, long-term question: What are the costs of congressional dysfunction?

But the more immediate concern for people of the country is how a shutdown will affect them. Whether delayed business loans, slower mortgage applications, curtailed food assistance or postponed food inspections, the effects could be substantial.

An airplane landing near an air traffic control tower.
Air traffic controller training will be halted in a government shutdown. Joe Raedle/Getty Images

Affected: Farm loans to Head Start grants

The total federal budget is almost US$6 trillion. A little over one-fourth is discretionary spending that is funded by the annual appropriations process and thus debated in Congress. This portion of spending provides money for virtually every federal agency, roughly half of which goes to defense. The rest of yearly federal spending is on mandatory entitlement programs, mainly Social Security and Medicare, as well as interest on the national debt.

The Office of Management and Budget, which oversees both development of federal budget plans by federal agencies and their performance, regularly requires agencies to develop shutdown plans. Because agencies continually update these plans, no two shutdowns are exactly alike. Details depend on the agency, program and duration of the shutdown, as well as laws passed with funding since the previous shutdown, and the administration’s priorities. These plans identify a variety of ways the shutdown will affect Americans.

If a shutdown happens this year, new loan approvals from the Small Business Administration will stop. The Federal Housing Administration will experience delays in processing home mortgage loans and approvals. The Department of Agriculture will not offer new farm loans. Head Start grants will not be awarded, initially affecting 10,000 young children from low-income families who are in the program.

Some food inspections by the Food and Drug Administration, workplace safety inspections by the Occupational Safety and Health Administration, and environmental safety inspections by the Environmental Protection Agency could be delayed, as they have been when the government stopped functioning in the past.

During the last shutdown, about 60,000 immigration hearings, organized by the Department of Justice and not the courts, were canceled and had to be rescheduled. This year would also see cases involving noncitizens who are not being held by the government reset for a later date, even as other immigration services proceed.

Infrastructure projects awaiting approval from the Environmental Protection Agency could be stalled. The National Institute of Health’s clinical trials for diseases could also be slowed.

This is not a comprehensive list. Agency plans show what happens when federal workers are furloughed – that is, those who cannot report to work in a shutdown. Furloughs will apply to over 700,000 out of roughly 3.5 million federal employees, but even more workers will be “excepted” and required to work without pay until the shutdown ends.

That of course means employee hardship. But like past shutdowns, unpaid workers can fail to report to work in larger numbers. Americans relying on those services will face delays. There may be air travel delays as well, as air traffic controllers and Transportation Security Administration agents go without pay.

Not affected: The IRS, postal service and entitlement programs

Social Security, Medicare and Medicaid benefits are entitlement programs that are not included in the annual appropriations process. Americans relying on these programs will not see those benefits affected. But these programs require administration. Federal employees would not be available to verify benefits or send out new cards.

There are additional funding sources for government activities, beyond entitlement programs, that aren’t included in the annual appropriations bills and thus are unlikely to be affected by a shutdown.

The U.S. Postal Service, independently funded through its own services, will be unaffected by a shutdown. The federal judiciary could operate for a limited time, funded by court filings, fees and appropriations allocated off the yearly cycle. But this funding won’t last long – 10 days was an estimate for the 2013 shutdown. The Supreme Court, which has functioned in previous shutdowns, is expected to continue its typical schedule.

A sign reading 'Because of the Federal Government SHUTDOWN All National Parks are Closed' is posted on a barricade in front of the Lincoln Memorial.
National parks will be closed in a shutdown, as the Lincoln Memorial in Washington was in the 2013 shutdown. AP Photo/Carolyn Kaster

Sometimes, agencies have funding that exceeds the typical annual appropriations cycle. Or, earlier laws may have been passed that fund activities of an agency in whole or in part. The Inflation Reduction Act provided funds to run the IRS through 2031. Previous shutdowns saw significant IRS furloughs and employees walking off the job. This year, the IRS promises to be fully operational despite a shutdown.

A variety of advance appropriations also exist that provide funding for various programs one year or more beyond the year the appropriations bill was passed, including Veterans Affairs medical care; most VA benefits are unaffected.

The primary law governing funding gaps also makes exceptions for “emergencies involving the safety of human life or the protection of property,” which includes a variety of military activities.

The big question mark

The major unknown is, of course, how long a shutdown might last. Food assistance programs – including the federal food program for poorer women, infants and children, called WIC, and the Supplemental Nutrition Assistance Program, or SNAP – which have some contingency funds that carry over into the next fiscal year but are running low, run the risk of those accounts running out.

The federal judiciary has limited funds. There are also a variety of federal grants to states and localities that could be short on funds, such as disaster relief and economic development programs, in addition to nutrition assistance. Government officials at the federal, state and local levels will have to make choices about whether a federal shortfall should be covered by state funds, or if workers should be furloughed. Some of these funds have been protected by increased funding in recent laws: The Highway Trust Fund is solvent through 2027, due to the Bipartisan Infrastructure Law of 2021.

The economy as a whole will suffer more the longer a shutdown continues. The Congressional Budget Office estimated that the last shutdown, in 2018-2019, reduced gross domestic product growth by 0.2% in the first quarter of 2019. While that 35-day partial shutdown was the longest in U.S. history, it did not affect all agencies.

Federal employees and contractors are disproportionately hurt. Federal employees who are furloughed or excepted and do not receive pay during the shutdown will receive it retroactively, according to a 2019 law passed as a response to the last shutdown.

No such policy exists for contractors working for the federal government, including services ranging from janitorial to manufacturing. Beyond affecting individual workers, the private sector loses business and adjusts its hiring decisions and other practices.

Laura Blessing does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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International

United Airlines adds new flights to faraway destinations

The airline said that it has been working hard to "find hidden gem destinations."

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1 hour ago

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March 8, 2024

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Since countries started opening up after the pandemic in 2021 and 2022, airlines have been seeing demand soar not just for major global cities and popular routes but also for farther-away destinations.

Numerous reports, including a recent TripAdvisor survey of trending destinations, showed that there has been a rise in U.S. traveler interest in Asian countries such as Japan, South Korea and Vietnam as well as growing tourism traction in off-the-beaten-path European countries such as Slovenia, Estonia and Montenegro.

Related: 'No more flying for you': Travel agency sounds alarm over risk of 'carbon passports'

As a result, airlines have been looking at their networks to include more faraway destinations as well as smaller cities that are growing increasingly popular with tourists and may not be served by their competitors.

The Philippines has been popular among tourists in recent years.

Shutterstock

United brings back more routes, says it is committed to 'finding hidden gems'

This week, United Airlines  (UAL)  announced that it will be launching a new route from Newark Liberty International Airport (EWR) to Morocco's Marrakesh. While it is only the country's fourth-largest city, Marrakesh is a particularly popular place for tourists to seek out the sights and experiences that many associate with the country — colorful souks, gardens with ornate architecture and mosques from the Moorish period.

More Travel:

"We have consistently been ahead of the curve in finding hidden gem destinations for our customers to explore and remain committed to providing the most unique slate of travel options for their adventures abroad," United's SVP of Global Network Planning Patrick Quayle, said in a press statement.

The new route will launch on Oct. 24 and take place three times a week on a Boeing 767-300ER  (BA)  plane that is equipped with 46 Polaris business class and 22 Premium Plus seats. The plane choice was a way to reach a luxury customer customer looking to start their holiday in Marrakesh in the plane.

Along with the new Morocco route, United is also launching a flight between Houston (IAH) and Colombia's Medellín on Oct. 27 as well as a route between Tokyo and Cebu in the Philippines on July 31 — the latter is known as a "fifth freedom" flight in which the airline flies to the larger hub from the mainland U.S. and then goes on to smaller Asian city popular with tourists after some travelers get off (and others get on) in Tokyo.

United's network expansion includes new 'fifth freedom' flight

In the fall of 2023, United became the first U.S. airline to fly to the Philippines with a new Manila-San Francisco flight. It has expanded its service to Asia from different U.S. cities earlier last year. Cebu has been on its radar amid growing tourist interest in the region known for marine parks, rainforests and Spanish-style architecture.

With the summer coming up, United also announced that it plans to run its current flights to Hong Kong, Seoul, and Portugal's Porto more frequently at different points of the week and reach four weekly flights between Los Angeles and Shanghai by August 29.

"This is your normal, exciting network planning team back in action," Quayle told travel website The Points Guy of the airline's plans for the new routes.

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International

Walmart launches clever answer to Target’s new membership program

The retail superstore is adding a new feature to its Walmart+ plan — and customers will be happy.

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March 8, 2024

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It's just been a few days since Target  (TGT)  launched its new Target Circle 360 paid membership plan. 

The plan offers free and fast shipping on many products to customers, initially for $49 a year and then $99 after the initial promotional signup period. It promises to be a success, since many Target customers are loyal to the brand and will go out of their way to shop at one instead of at its two larger peers, Walmart and Amazon.

Related: Walmart makes a major price cut that will delight customers

And stop us if this sounds familiar: Target will rely on its more than 2,000 stores to act as fulfillment hubs. 

This model is a proven winner; Walmart also uses its more than 4,600 stores as fulfillment and shipping locations to get orders to customers as soon as possible.

Sometimes, this means shipping goods from the nearest warehouse. But if a desired product is in-store and closer to a customer, it reduces miles on the road and delivery time. It's a kind of logistical magic that makes any efficiency lover's (or retail nerd's) heart go pitter patter. 

Walmart rolls out answer to Target's new membership tier

Walmart has certainly had more time than Target to develop and work out the kinks in Walmart+. It first launched the paid membership in 2020 during the height of the pandemic, when many shoppers sheltered at home but still required many staples they might ordinarily pick up at a Walmart, like cleaning supplies, personal-care products, pantry goods and, of course, toilet paper. 

It also undercut Amazon  (AMZN)  Prime, which costs customers $139 a year for free and fast shipping (plus several other benefits including access to its streaming service, Amazon Prime Video). 

Walmart+ costs $98 a year, which also gets you free and speedy delivery, plus access to a Paramount+ streaming subscription, fuel savings, and more. 

An employee at a Merida, Mexico, Walmart. (Photo by Jeffrey Greenberg/Universal Images Group via Getty Images)

Jeff Greenberg/Getty Images

If that's not enough to tempt you, however, Walmart+ just added a new benefit to its membership program, ostensibly to compete directly with something Target now has: ultrafast delivery. 

Target Circle 360 particularly attracts customers with free same-day delivery for select orders over $35 and as little as one-hour delivery on select items. Target executes this through its Shipt subsidiary.

We've seen this lightning-fast delivery speed only in snippets from Amazon, the king of delivery efficiency. Who better to take on Target, though, than Walmart, which is using a similar store-as-fulfillment-center model? 

"Walmart is stepping up to save our customers even more time with our latest delivery offering: Express On-Demand Early Morning Delivery," Walmart said in a statement, just a day after Target Circle 360 launched. "Starting at 6 a.m., earlier than ever before, customers can enjoy the convenience of On-Demand delivery."

Walmart  (WMT)  clearly sees consumers' desire for near-instant delivery, which obviously saves time and trips to the store. Rather than waiting a day for your order to show up, it might be on your doorstep when you wake up. 

Consumers also tend to spend more money when they shop online, and they remain stickier as paying annual members. So, to a growing number of retail giants, almost instant gratification like this seems like something worth striving for.

Related: Veteran fund manager picks favorite stocks for 2024

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International

President Biden Delivers The “Darkest, Most Un-American Speech Given By A President”

President Biden Delivers The "Darkest, Most Un-American Speech Given By A President"

Having successfully raged, ranted, lied, and yelled through…

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March 8, 2024

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President Biden Delivers The "Darkest, Most Un-American Speech Given By A President"

Having successfully raged, ranted, lied, and yelled through the State of The Union, President Biden can go back to his crypt now.

Whatever 'they' gave Biden, every American man, woman, and the other should be allowed to take it - though it seems the cocktail brings out 'dark Brandon'?

Tl;dw: Biden's Speech tonight ...

  • Fund Ukraine.

  • Trump is threat to democracy and America itself.

  • Abortion is good.

  • American Economy is stronger than ever.

  • Inflation wasn't Biden's fault.

  • Illegals are Americans too.

  • Republicans are responsible for the border crisis.

  • Trump is bad.

  • Biden stands with trans-children.

  • J6 was the worst insurrection since the Civil War.

(h/t @TCDMS99)

Tucker Carlson's response sums it all up perfectly:

"that was possibly the darkest, most un-American speech given by an American president. It wasn't a speech, it was a rant..."

Carlson continued: "The true measure of a nation's greatness lies within its capacity to control borders, yet Bid refuses to do it."

"In a fair election, Joe Biden cannot win"

And concluded:

“There was not a meaningful word for the entire duration about the things that actually matter to people who live here.”

Victor Davis Hanson added some excellent color, but this was probably the best line on Biden:

"he doesn't care... he lives in an alternative reality."

*  *  *

Watch SOTU Live here...

*   *   *

Mises' Connor O'Keeffe, warns: "Be on the Lookout for These Lies in Biden's State of the Union Address." 

On Thursday evening, President Joe Biden is set to give his third State of the Union address. The political press has been buzzing with speculation over what the president will say. That speculation, however, is focused more on how Biden will perform, and which issues he will prioritize. Much of the speech is expected to be familiar.

The story Biden will tell about what he has done as president and where the country finds itself as a result will be the same dishonest story he's been telling since at least the summer.

He'll cite government statistics to say the economy is growing, unemployment is low, and inflation is down.

Something that has been frustrating Biden, his team, and his allies in the media is that the American people do not feel as economically well off as the official data says they are. Despite what the White House and establishment-friendly journalists say, the problem lies with the data, not the American people's ability to perceive their own well-being.

As I wrote back in January, the reason for the discrepancy is the lack of distinction made between private economic activity and government spending in the most frequently cited economic indicators. There is an important difference between the two:

  • Government, unlike any other entity in the economy, can simply take money and resources from others to spend on things and hire people. Whether or not the spending brings people value is irrelevant

  • It's the private sector that's responsible for producing goods and services that actually meet people's needs and wants. So, the private components of the economy have the most significant effect on people's economic well-being.

Recently, government spending and hiring has accounted for a larger than normal share of both economic activity and employment. This means the government is propping up these traditional measures, making the economy appear better than it actually is. Also, many of the jobs Biden and his allies take credit for creating will quickly go away once it becomes clear that consumers don't actually want whatever the government encouraged these companies to produce.

On top of all that, the administration is dealing with the consequences of their chosen inflation rhetoric.

Since its peak in the summer of 2022, the president's team has talked about inflation "coming back down," which can easily give the impression that it's prices that will eventually come back down.

But that's not what that phrase means. It would be more honest to say that price increases are slowing down.

Americans are finally waking up to the fact that the cost of living will not return to prepandemic levels, and they're not happy about it.

The president has made some clumsy attempts at damage control, such as a Super Bowl Sunday video attacking food companies for "shrinkflation"—selling smaller portions at the same price instead of simply raising prices.

In his speech Thursday, Biden is expected to play up his desire to crack down on the "corporate greed" he's blaming for high prices.

In the name of "bringing down costs for Americans," the administration wants to implement targeted price ceilings - something anyone who has taken even a single economics class could tell you does more harm than good. Biden would never place the blame for the dramatic price increases we've experienced during his term where it actually belongs—on all the government spending that he and President Donald Trump oversaw during the pandemic, funded by the creation of $6 trillion out of thin air - because that kind of spending is precisely what he hopes to kick back up in a second term.

If reelected, the president wants to "revive" parts of his so-called Build Back Better agenda, which he tried and failed to pass in his first year. That would bring a significant expansion of domestic spending. And Biden remains committed to the idea that Americans must be forced to continue funding the war in Ukraine. That's another topic Biden is expected to highlight in the State of the Union, likely accompanied by the lie that Ukraine spending is good for the American economy. It isn't.

It's not possible to predict all the ways President Biden will exaggerate, mislead, and outright lie in his speech on Thursday. But we can be sure of two things. The "state of the Union" is not as strong as Biden will say it is. And his policy ambitions risk making it much worse.

*  *  *

The American people will be tuning in on their smartphones, laptops, and televisions on Thursday evening to see if 'sloppy joe' 81-year-old President Joe Biden can coherently put together more than two sentences (even with a teleprompter) as he gives his third State of the Union in front of a divided Congress. 

President Biden will speak on various topics to convince voters why he shouldn't be sent to a retirement home.

According to CNN sources, here are some of the topics Biden will discuss tonight:

  • Economic issues: Biden and his team have been drafting a speech heavy on economic populism, aides said, with calls for higher taxes on corporations and the wealthy – an attempt to draw a sharp contrast with Republicans and their likely presidential nominee, Donald Trump.

  • Health care expenses: Biden will also push for lowering health care costs and discuss his efforts to go after drug manufacturers to lower the cost of prescription medications — all issues his advisers believe can help buoy what have been sagging economic approval ratings.

  • Israel's war with Hamas: Also looming large over Biden's primetime address is the ongoing Israel-Hamas war, which has consumed much of the president's time and attention over the past few months. The president's top national security advisers have been working around the clock to try to finalize a ceasefire-hostages release deal by Ramadan, the Muslim holy month that begins next week.

  • An argument for reelection: Aides view Thursday's speech as a critical opportunity for the president to tout his accomplishments in office and lay out his plans for another four years in the nation's top job. Even though viewership has declined over the years, the yearly speech reliably draws tens of millions of households.

Sources provided more color on Biden's SOTU address: 

The speech is expected to be heavy on economic populism. The president will talk about raising taxes on corporations and the wealthy. He'll highlight efforts to cut costs for the American people, including pushing Congress to help make prescription drugs more affordable.

Biden will talk about the need to preserve democracy and freedom, a cornerstone of his re-election bid. That includes protecting and bolstering reproductive rights, an issue Democrats believe will energize voters in November. Biden is also expected to promote his unity agenda, a key feature of each of his addresses to Congress while in office.

Biden is also expected to give remarks on border security while the invasion of illegals has become one of the most heated topics among American voters. A majority of voters are frustrated with radical progressives in the White House facilitating the illegal migrant invasion. 

It is probable that the president will attribute the failure of the Senate border bill to the Republicans, a claim many voters view as unfounded. This is because the White House has the option to issue an executive order to restore border security, yet opts not to do so

Maybe this is why? 

While Biden addresses the nation, the Biden administration will be armed with a social media team to pump propaganda to at least 100 million Americans. 

"The White House hosted about 70 creators, digital publishers, and influencers across three separate events" on Wednesday and Thursday, a White House official told CNN. 

Not a very capable social media team... 

The administration's move to ramp up social media operations comes as users on X are mostly free from government censorship with Elon Musk at the helm. This infuriates Democrats, who can no longer censor their political enemies on X. 

Meanwhile, Democratic lawmakers tell Axios that the president's SOTU performance will be critical as he tries to dispel voter concerns about his elderly age. The address reached as many as 27 million people in 2023. 

"We are all nervous," said one House Democrat, citing concerns about the president's "ability to speak without blowing things."

The SOTU address comes as Biden's polling data is in the dumps. 

BetOnline has created several money-making opportunities for gamblers tonight, such as betting on what word Biden mentions the most. 

As well as...

We will update you when Tucker Carlson's live feed of SOTU is published. 

Tyler Durden Fri, 03/08/2024 - 07:44

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