US government shutdown: Millions of federal employees brace for mass layoffs. It would cost the economy...

The threat of a government shutdown has become a recurring event in Washington. This time, prospects for a last-minute compromise look rather bleak. US President Donald Trump and congressional Democrats are at loggerheads that could leave federal services unfunded. Unless Congress agrees on a funding deal before midnight on September 30 large parts of the federal government will run out of money and be forced to close from October 1.

Unlike past shutdowns, where furloughed workers were later reimbursed, the White House is weighing actual layoffs this time. A government shutdown takes place when lawmakers fail to pass a funding bill for the new fiscal year. When money runs out, many federal agencies cannot function and all non-essential work must be stopped unless Congress acts.

Essential services, such as social security, the military, immigration enforcement and air traffic control, continue. Mail delivery also goes on as usual. But other areas face disruption. In the past, shutdowns have closed national parks and Smithsonian museums, delayed immigration hearings, slowed air travel and disrupted food safety checks.


ALSO READ: Thomas Jacob Stanford was a Trump supporter? Michigan Church shooter's chilling past emerges

The longest shutdown so far lasted 34 days in 2018 under Donald Trump, leaving around 800,000 government workers without pay, according to The Guardian.

The financial impact of a shutdown typically depends on the length of the disruption, with each week costing the US economy about $7 billion, according to a new analysis from EY-Parthenon Chief Economist Gregory Daco. A suspension could also weigh on investor and consumer confidence at a time when the U.S. economy is already facing headwinds, he told CBS News.

White House plans layoffs

More than 100,000 federal employees in the US could lose their jobs as early as Tuesday as a potential government shutdown edges closer. The Trump administration released a memo on Wednesday instructing agencies to prepare for large-scale layoffs if Congress fails to approve funding for the upcoming fiscal year. Thousands of federal workers are reportedly considering deferred resignation programs, which could mark the largest mass federal workforce exit in US history.

ALSO READ: Jared Kushner and Saudis take EA Games private in a massive deal. Trump connection under spotlight

Federal employees from agencies across the US government say they’re “terrified,” “disoriented” and filled with anxiety as they brace for a possible shutdown, reports CNN. “I’m absolutely terrified about going through the same thing all over again,” said one federal worker who was fired and rehired this year as part of the Department of Government Efficiency’s cuts. “This kind of treatment is inhumane. I don’t even know how to prepare for the complete unknown.”

Republicans have proposed a short-term measure to keep the government funded through November 21. However, Democrats insist that any funding plan also address their health care concerns. They seek to reverse the Medicaid cuts included in President Donald Trump’s major legislation passed this summer and to extend tax credits that help make health insurance premiums more affordable for millions of people buying coverage through the Affordable Care Act marketplaces. Republicans, however, have rejected these demands as a non-starter.

ALSO READ: Michigan Church shooting: Suspect Thomas Jacob Stanford's emotional Facebook post on his child's illness surfaces

How departments would operate during a shutdown:

Department of Education: If a shutdown occurs, only a small number of employees would continue working, according to the department’s updated plan released Sunday, CNN reported. Nearly 1,500 of the department’s 1,700 employees would be furloughed, along with about 650 of the 750 staff members at the Office of Federal Student Aid.

Department of Defense: The Pentagon’s contingency plan states that roughly 224,000 of its more than 741,000 civilian staff would remain on duty to protect life and property, supported by nearly 2.1 million military personnel.

Department of Homeland Security: If funding lapses, just 14,000 of the agency’s nearly 272,000 employees would be furloughed. Most personnel in Customs and Border Protection, Immigration and Customs Enforcement, the Transportation Security Administration, the Secret Service, Citizenship and Immigration Services, and FEMA would continue working, CNN reported.

ALSO READ: D4vd Tesla scandal sees new twist: Celeste Rivas was dead 'for weeks' before being found in singer's car? Check details