The work that won't get done during a government shutdown - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
January 18, 2018 Newswires
Share
Share
Tweet
Email

The work that won’t get done during a government shutdown

Associated Press

WASHINGTON (AP) — Thousands of intelligence agency employees would be furloughed even as tension over North Korea's nuclear program remains high. Important biomedical and public health research would be interrupted and possibly damaged. Military veterans would watch helplessly as the processing of their disability claims came to a halt.

Although the government won't actually close if Congress can't pass a spending bill by Friday at midnight, there's plenty that won't get done should hundreds of thousands of federal employees be barred from working until dysfunctional Washington agrees on a plan.

J. David Cox, national president of the American Federation of Government Employees, said shutdowns can have dramatic impacts as jobs are left unattended. The longer a shutdown lasts, he said, the worse it gets.

"Day one, the world doesn't fall apart," Cox said. But "things start to crumble" over time, he said, as Americans begin to realize how reliant they are on the government.

Partial shutdowns can be expensive, too. Five years ago, when swaths of the federal government were shuttered for just over two weeks, 850,000 employees were furloughed, which cost the government 6.6 million days of work and more than $2.5 billion in lost productivity and pay and benefits for employees.

In the case of a shutdown, just under half of the 2 million civilian federal workers would be forced off the job if the Trump administration sticks to the rules followed by previous Presidents Ronald Reagan, George H.W. Bush, Bill Clinton and Barack Obama. But U.S. troops will stay at their posts and mail will get delivered as about 500,000 Postal Service employees and 1.3 million uniformed military personnel are exempt from being furloughed.

A lengthy shutdown could cause lingering problems for the Internal Revenue Service, which is preparing for the start of the tax filing season while also still ingesting the sweeping changes made by the new GOP tax law.

It's "too early to tell" whether a shutdown would affect the government's implementation of the massive new tax law enacted last month, White House Budget Director Mick Mulvaney said in an interview Wednesday on Fox Business Network's "Varney & Co." He said his agency hasn't yet determined whether the IRS employees developing new tax forms to conform with the law are deemed essential, meaning they would still report to work during a shutdown.

But Marcus Owens, who for 10 years headed the IRS division dealing with charities and political organizations, said those employees traditionally are considered non-essential. In fact, "Nobody in the (IRS) Washington office is going to be at work if there's a lengthy shutdown," he said.

The Republican architects of the tax law have promised that millions of working Americans will see heftier paychecks next month, with less money withheld by employers in anticipation of lower income taxes. The IRS recently issued new withholding tables for employers.

"I would say it's a virtual certainty" that the larger paychecks will be delayed if there's a shutdown, Owens said.

At the State Department, spokeswoman Heather Nauert said that Secretary of State Rex Tillerson and individual U.S. embassies have some discretion over how to handle a shutdown but that the department was taking direction from the White House's Office of Management and Budget.

"We will be prepared for all contingencies, including of a lapse" in funding, Nauert said.

She said that while security for American diplomats overseas wouldn't be affected, no decisions had yet been made about what services, like visa processing and passports, the State Department would be able to provide during a shutdown. Nor has there been a decision about whether Tillerson can go ahead with a planned trip to Europe next week if the government shuts down, she said.

"We're not going to make any decisions until we need to," Nauert said about the trip.

The workforce at the 17 U.S. intelligence agencies would be pared way down, according to a person familiar with contingency procedures.

The official, who was not authorized to publicly discuss the matter and spoke on condition of anonymity, said employees that are considered essential and have to work will do so with no expectation of a regular paycheck.

While they can be kept on the job, federal workers can't get paid for days worked during a shutdown. In the past, however, they have been repaid retroactively even if they were ordered to stay home.

Interior Department spokeswoman Heather Swift said national parks and other public lands "will remain as accessible as possible while still following all applicable laws and procedures." But she said services at parks that require staffing and maintenance, such as campgrounds, full service restrooms, and concessions won't be operating if there's a shutdown.

The Federal Aviation Administration represents the majority — 45,000 — of the Department of Transportation's more than 58,000 employees. FAA employees in "safety critical" positions would continue to work, including air traffic control and most aviation and railroad safety inspectors.

But certification of new aircraft, processing of airport construction grants, registration of planes and issuance of new pilot licenses and medical certificates would stop.

The Federal Highway Administration and the Federal Motor Carrier Safety Administration, whose operations are mostly paid for out of the Federal Highway Trust Fund, would continue most of their functions. The fund's revenue comes from federal gas and diesel taxes, which would continue to be collected. But work on issuing new regulations would stop throughout the department and its nine agencies. Federal contractors with money still in the pipeline would also continue to work as long as they don't require access to federal facilities.

A government shutdown would be disruptive to research and morale at the National Institutes of Health but would not adversely affect patients already in medical studies, according to Dr. Anthony Fauci, the agency's infectious disease chief.

"We still take care of them," he said of current NIH patients. But other types of research would be seriously harmed, Fauci said Thursday.

"It's a scramble to address the possibility," Fauci said.

A shutdown could mean interrupting research that's been going on for years, Fauci said. The NIH is the government's primary agency responsible for biomedical and public health research across 27 institutes and centers. Its research ranges from cancer studies to the testing and creation of vaccines.

"You can't push the pause button on an experiment," he said.

Associated Press writers Joan Lowy, Andrew Taylor, Laurie Kellman, Deb Riechmann, Matthew Lee and Marcy Gordon contributed to this report.

Contact Richard Lardner on Twitter at http://twitter.com/rplardner

Older

Leaders on aging prepare for funding cuts for senior services

Newer

Out-of-Pocket Health Plan Cost Calculator Helps New Yorkers Sign Up for the Right Plan Before the 1/31 Enrollment Deadline

Advisor News

  • Does a $1M make you rich? Many millionaires today don’t think so
  • Implications of in-service rollovers on in-plan income adoption
  • 2025 Top 5 Advisor Stories: From the ‘Age Wave’ to Gen Z angst
  • Flexibility is the future of employee financial wellness benefits
  • Bill aims to boost access to work retirement plans for millions of Americans
More Advisor News

Annuity News

  • Great-West Life & Annuity Insurance Company Trademark Application for “EMPOWER BENEFIT CONSULTING SERVICES” Filed: Great-West Life & Annuity Insurance Company
  • 2025 Top 5 Annuity Stories: Lawsuits, layoffs and Brighthouse sale rumors
  • An Application for the Trademark “DYNAMIC RETIREMENT MANAGER” Has Been Filed by Great-West Life & Annuity Insurance Company: Great-West Life & Annuity Insurance Company
  • Product understanding will drive the future of insurance
  • Prudential launches FlexGuard 2.0 RILA
More Annuity News

Health/Employee Benefits News

  • What the end of ACA tax credits means for health insurance costs and how Connecticut residents are responding
  • DISABILITY INSURANCE STIFLES HUMAN POTENTIAL
  • KDP LAUNCHES PETITION TO ADDRESS PREVENTABLE SPIKE IN HEALTH INSURANCE PREMIUMS
  • Medicaid fraud is a problem
  • Aetna to cover IVF treatments for same-sex couples in national settlement
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • Baby On Board
  • 2025 Top 5 Life Insurance Stories: IUL takes center stage as lawsuits pile up
  • Private placement securities continue to be attractive to insurers
  • Inszone Insurance Services Expands Benefits Department in Michigan with Acquisition of Voyage Benefits, LLC
  • Affordability pressures are reshaping pricing, products and strategy for 2026
More Life Insurance News

- Presented By -

Top Read Stories

  • How the life insurance industry can reach the social media generations
More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Slow Me the Money
Slow down RMDs … and RMD taxes … with a QLAC. Click to learn how.

ICMG 2026: 3 Days to Transform Your Business
Speed Networking, deal-making, and insights that spark real growth — all in Miami.

Your trusted annuity partner.
Knighthead Life provides dependable annuities that help your clients retire with confidence.

Press Releases

  • Two industry finance experts join National Life Group amid accelerated growth
  • National Life Group Announces Leadership Transition at Equity Services, Inc.
  • SandStone Insurance Partners Welcomes Industry Veteran, Rhonda Waskie, as Senior Account Executive
  • Springline Advisory Announces Partnership With Software And Consulting Firm Actuarial Resources Corporation
  • Insuraviews Closes New Funding Round Led by Idea Fund to Scale Market Intelligence Platform
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2025 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet