The US is edging towards another government shutdown after the lower chamber of Congress failed to pass a spending bill to keep federal agencies open. Funding is set to lapse at midnight on Friday unless Republicans and Democrats can agree on a way forward.
Many federal government agencies rely on annual funding approved by Congress. If agreement is not reached, then all non-essential, discretionary functions of the US government stop.
A shutdown could mean longer wait times at airports, and services like the food assistance programme, federally funded preschool, the issuing of student loans and food inspections, and National Parks will be curtailed or close. While Social Security and Medicare cheques are sent out, benefit verification and card issuance stops.
The US has had quite common shutdowns in the past, with President Ronald Reagan overseeing eight shutdowns during his tenure, and there were three when Donald Trump was president, including the longest in history at 36 days which ended in January 2019.
The Congressional Budget Office estimated that the 2019 shutdown reduced economic output by about $11bn, including $3bn that it never regained.
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