Shutdown Averted, But Much Still Unknown

By Laura Walling, Vice President of Government Affairs, Goodwill Industries International

Putting his leadership position in jeopardy, former Speaker Kevin McCarthy made an 11th hour shift in strategy by introducing a relatively “clean” continuing resolution (CR) without controversial border-security provisions or spending cuts. The CR passed the House with the support of House Democrats and then passed the Senate thus avoiding a government shutdown. The CR will run until November 17 and the bill provided funding at current FY23 levels and includes an extension of several reauthorizations (including Temporary Assistance to Needy Families), as well as $16 billion in disaster funding, but no additional funding for Ukraine. A full or partial shutdown may occur by the new deadline if Congress doesn’t pass all 12 necessary appropriations bills.

The House and Senate will try to pass their respective appropriations bills and work out differences before the next deadline expires, however work in the House is currently at a standstill as members try to find a new Speaker. The House is expected to vote on a new Speaker on October 11^th.  The Senate plans to try and pass a three bill minibus after they return from recess on October 16^th.  The House has passed four of 12 spending bills, but the bills are unlikely to be considered in the Democrat-controlled Senate as they set funding levels well below the spending caps set in the bipartisan deal to address the debt limit earlier this year.  The debt agreement also included a provision that imposes an automatic overall 1 percent cut to spending programs if Congress fails to approve its annual spending bills by the end of the year. Of particular interest to local Goodwill organizations is the Labor-Health and Human Services-Education spending bill which has yet to be marked up in the House.

Despite the challenges faced by Congress, people still need critical services including job training regardless of what is happening on Capitol Hill and our hope is that an agreement will be reached far in advance of the next deadline and that provides robust investments in workforce development programs.