Potential Federal Government Shutdown

Esq. Stephen B. Hanse in Federal News, Legislative

The Senate is expected to reject certain provisions of the House continuing resolution (“CR”) today and send the measure back to the House pushing the Federal government to the brink of the first temporary government shutdown in 17 years. Upon receiving the CR, the House can either put the Senate resolution on the floor for an up or down vote, or return the measure to the Senate with further amendments.  Without the passage of a continuing resolution by Congress prior to the commencement of the new federal fiscal year, which begins tomorrow October 1st, there is no authority for federal agencies and programs to continue in operation.

While it seems that some sort of shutdown is likely, it is not clear as to whether a shutdown will last for 24 hours or 24 days. It is also unclear as to how much of the federal government will remain running during a shutdown.  In general, any federal program or agency charged with protecting life and property is deemed critical and is typically not subject to a shutdown.  Additionally, the President has some discretion in determining what programs and agencies are essential and which are not in a shutdown.

Funding for Medicaid and Medicare is not subject to annual appropriations that lapse during a shutdown.  However, federal employees processing claims and administering these programs are paid through annual appropriations and their employment would be affected by a shutdown. Consequently, while a short-term shutdown is not likely to impact providers, questions remain as to the implications of a prolonged shutdown.

We will continue to provide updates as matters develop.

NYSHFA NYSCAL Contact: Stephen B. Hanse, Esq.
Vice President Governmental Affairs