Shutdown could cost $400M daily, 750K employees at | Political News

The Congressional Budget Office (CBO) has projected that the authorities shutdown could cost roughly $400 million as “750,000 employees could be furloughed each day.”

In a letter addressed to Senator Joni Ernst, the CBO outlined the potential influence of the authorities shutdown on federal employees’ pay.

The CBO’s analysis is grounded in its 2019 work “after the five-week partial shutdown from December 22, 2018, until January 25, 2019.

“Using data from the companies’ contingency plans and the Office of Personnel Management (OPM), CBO estimates that under a lapse in discretionary funding for fiscal yr 2026, about 750,000 employees could be furloughed each day; the full daily cost of their compensation can be roughly $400 million”, the letter states.

Earlier on Tuesday, President Donald Trump announced during an Oval Office press convention, “We’ll most likely have a shutdown,”, stories the Mirror US.

“They need to give Cadillac Medicare to unlawful aliens … at the cost to everybody else,” the president claimed. This is a false assertion that Trump and other Republicans have echoed since lawmakers have failed to pass a continuing resolution to keep the government funded.

The Senate is slated to vote on the Republican and Democratic versions of a temporary funding bill at 5pm EST today. Both failed to secure the necessary 60 votes to pass the chamber before last week’s congressional recess.

Government funding is due to run out Tuesday night.

Since 1980, there have been 15 instances of U.S. government shutdowns. However, these shutdowns have become lengthier since the late 90s.

While the frequency of government shutdowns has decreased, the longest one lasted for 35 days at the end of 2018 – marking the longest in history and occurring during Trump’s first term.

This was one of three shutdowns that Donald Trump faced during his presidency.

The CBO letter indicated that the impact of a government shutdown on the economy would hinge on its scope and duration.

“At the time [2019], CBO estimated that although most of the real gross home product (GDP; real GDP is adjusted to take away the results of inflation) that was misplaced during the fourth quarter of 2018 and the first quarter of 2019 finally can be recovered, about $3 billion would never be. In its report, CBO projected that quantity at 0.02 p.c of annual GDP in 2019”, the letter acknowledged.