If Congress does not provide funding for the fiscal year starting October 1, US government services will be disrupted and thousands of federal employees will have to take unpaid leave.
theo reutersUS President Joe Biden warned on September 25 that a government shutdown would have serious consequences for the Black community, including reduced nutrition benefits and inspections of waste treatment areas.
Meanwhile, U.S. Agriculture Secretary Tom Vilsack said the “vast majority” of the 7 million people participating in the Special Supplemental Nutrition Program for Women, Infants and Children (WIC) would have benefits cut immediately following the government shutdown.
US President Joe Biden at a meeting at the White House on September 25 Photo: Reuters
Additionally, the Supplemental Nutrition Assistance Program (SNAP) could be affected after October if the above scenario occurs. More than 40 million Americans will rely on SNAP in 2022.
Additionally, agricultural service agencies will have to stop giving loans to farmers at harvest time. New home buyers also cannot borrow money in rural areas.
The same day, Moody’s Credit Rating Agency (USA) warned that a government shutdown would have a negative impact on the US credit rating. Moody’s expert William Foster told Reuters the risk of a government shutdown was further evidence of political polarization in Washington, making fiscal policymaking difficult.
Echoing Moody’s warning, President Biden’s top economic adviser, Ms. Lael Brainard, emphasized that a government shutdown would create completely unnecessary risks to the economy, as well as cause disruption to communities and families across the country.