An extended U.S. government shutdown would cause increasing harm to the nation’s economy, with the Washington area -- home to about 350,000 federal workers -- bearing the brunt of the damage.
Congressional leaders remain stalemated over funding the U.S. government, with President Barack Obama unable to broker a compromise after several White House meetings -- the most recent one last night -- with House Speaker John Boehner, an Ohio Republican, and Senate Majority Leader Harry Reid, a Nevada Democrat. The lawmakers’ staffs were continuing negotiations into the night.
In brief remarks after last night’s session with Boehner and Reid, Obama said that a shutdown could severely hamper the economic recovery and job growth.
Failure to reach a deal on funding for the remaining six months of the fiscal year would trigger a government shutdown at midnight tonight, causing more than 800,000 “non-essential” federal workers to be furloughed without pay.
Among services that would be halted are some mortgage processing by the Federal Housing Administration and loan approvals by the Small Business Administration, while some tax refunds would be delayed. Air traffic control, emergency management and federal law enforcement would continue.
Lockheed Martin Corp. (LMT), the world’s largest defense contractor, said it would keep its factories open and pay its employees’ salaries and benefits.