 |
| Government Shutdown 2011 |
2.55pm: The New York Times's The Caucus blog has details on the war of words between Harry Reid and the Republicans about a budget deal that may or may not have been reached last night, and which Reid says the Republicans have now reneged upon:
Senator Harry Reid of Nevada, the majority leader, said he received an email at 4am Friday morning indicating that Republicans were backing away from a deal they had reached the night before on how much money to cut from the budget.
Mr. Reid said that he and Speaker John Boehner had reached a deal on the spending part of the dispute during the White House negotiating session Thursday night. But he said Republicans later said the deal was off.
"Last night, it was agreed upon," Mr Reid told reporters as he stood in front of a tableau of all of his Democratic colleagues in the Senate.
A spokesman for Mr. Boehner disputed Mr Reid's comments, saying that the parties never settled on a funding level that both sides could agree on.
2.49pm: As the federal government nears a shutdown, government departments are releasing estimates of how many employees could be "furloughed" – the polite term for suspension – and how many will be deemed "essentially".
The National Journal has a round-up here.2.42pm: The Washington Post has a Q&A on the effect of a government shutdown, including this bad news:
Do I still need to do my taxes if the government shuts down?Quick answer: Yes. You need to finish your taxes on time (postmarked April 18) in order to not incur a penalty for filing late. However, officials familiar with plans warned privately that the IRS would cease processing refunds for paper-submitted tax returns.
That doesn't seem fair, somehow.
2.30pm: What effect will a US government shutdown have on the US's global status? Council on Foreign Relations fellow Sebastian Mallaby tells CNN how a shutdown could affect American foreign policy:
I think there are two channels to think about. The first is a reputational one, where allies around the world look at theUnited States and say, "Gee their political system is so dysfunctional they can't even keep their government open, so what kind of a reliable ally can they be?"I don't want to overstate that because obviously in a government essential personnel including the armed forces are not going to be furloughed and any potential shutdown is probably not going to last very long, but I think there is some additional cost to American reputation – its reliability and competence.
2.15pm: Senate majority leader Harry Reid is saying that he is trying to work something out in the Senate with Republicans about a possible short-term funding bill – a continuing appropriations request.
But his major point is that the Republican leadership did a deal last night, agreeing to $78bn in cuts, but have now walked back on that deal. He explains that "John Boehner has a problem with his caucus" – implying that Boehner couldn't bring House Republicans with him.He may look like a bank manager but Harry Reid has a useful ability to insert a stiletto.
2.08pm: Harry Reid, the Senate majority leader, is speaking at the Democratic press conference – and accuses the Republicans of wanting to shut down the federal government over women's access to healthcare.
"If that sounds ridiculous, that's because it is," says Reid, who lists the dangers of a shutdown: a drop in US GDP, harm to American intelligence gathering, obligations to allies around the world.Reid mentions that the Smithsonian, "one of the world's greatest museums," will have to shut down at midnight. "And all because of women's access to healthcare."
2pm: The Senate Democrats are holding a live, mass press conference to talk about the budget battle. All the Democratic senators are on stage and they all look very happy – but that's because they are on TV, which always makes senators very happy.
For a handy way of keeping track of the government shutdown and related news on Twitter, follow @Govt_Shutdown1.43pm: Federal employees have been told not to even turn on their Blackberries if there is a government shutdown, according to the National Journal:
White House staffers face the threat of up to two years in jail if they use their work-issue BlackBerries during a government shutdown, sources told National Journal.On the plus side, it might be possible to work on the sidewalk in Washington DC without having to dodge the "Blackberry blind" pedestrians going to and from work.
Staffers have reportedly been "read the riot act," warned not to use the devices. "People are VERY clear on not using BlackBerries [if they're nonexempted] after a shutdown," one source said, speaking on condition of anonymity in discussing an internal White House matter with the press. "Same with nonexempted [employees] using their personal BlackBerries [for government work]. Total nonstarter."
1.28pm: The list of government agencies that will be disabled by the government shutdown is a long one, and reaches deep within the US economy and American society. The New York Times reports:
Among the people anxiously waiting to hear if Congress can reach a budget deal are front desk clerks at the Ahwahnee Hotel in Yosemite National Park, manufacturing executives whose companies supply goods to federal agencies, bank loan officers who make mortgages guaranteed by the Federal Housing Administration and Wall Street analysts who depend on a steady flow of government data.Some things will continue. Medicare and Medicaid services – the main source of healthcare for the elderly and the poor – receive mandatory funding, so they will be unaffected by the shutdown.
1.20pm: Here's the latest summary of how negotiations are proceedingbetween Congress and the White House, from my colleague Ewen Macaskill in Washington:
Obama, after a late-night meeting at the White House with Boehner and the Senate leader, Harry Reid, sounded optimistic that a deal could be reached. He said staff from both sides would work through the night to bridge the remaining differences. "I am not prepared to express wild optimism," the president said. "But I think we are further along today than we were yesterday." He is expecting an early answer from the Republicans to prevent the steps necessary to impose a shutdown being put into action.
The Democrats said agreement had been reached on about 70% of the issues. A senior Democrat in the House, Steny Hoyer, told NBC "there's no deal yet, unfortunately". He said he was embarrassed about the country being on the brink of a shutdown, but "you can't negotiate on the basis that one side gives 100% and the other gives zero".
The Republicans want a cut in the federal deficit of $40bn (£24bn). The Democrats made a compromise offer of $34.5bn on Wednesday. The new sticking points are mainly the areas where the Republicans want cuts – abortion programmes and environmental protection – on which the Democrats refuse to give way.
1pm ET: In less than 11 hours from now the US government will lose its funding and effectively shut down – causing around 800,000 federal employees not deemed to be "essential" to take forced unpaid leave with an uncertain end date.
By refusing to pass a bill allowing the federal government to be funded, the Republican dominated House of Representatives is forcing a showdown with the White House and Barack Obama. If the shutdown occurs, Washington DC will grind to a halt and the full panoply of modern government services, from national parks to passport applications, will be closed for the time being.America's armed forces and other parts of the country's infrastructure will continue to earn wages, although how they will actually be paid them is another matter.
In 1995-96, a similar battle between Democratic president and Republican speaker of the House of Representatives Newt Gingrich saw the government shutdown as the Republican majority choked off its funds. But the move backfired on Gingrich – and helped Clinton sail to re-election as president later that year.
Will history repeat itself? As the clock ticks closer to midnight, where is Jack Bauer when America needs him?
Sources: http://www.guardian.co.uk
