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Potential Impacts of a Government Shutdown

Sep 30, 2013
Press Release

If Congress fails to reach a budget agreement by Monday, the federal government will shut down.

Government works best when both sides come together to produce legislation that is supported by the middle – but unfortunately the process has been hijacked by a small group of extremists in the Republican Party.  With just one day left to avoid a government shutdown, it’s time to end the political posturing and get to work.

We have many important issues to tackle – unemployment among the middle class remains unacceptably high, our broken immigration system is in desperate need of reform and thousands of Americans still face home foreclosure every day.  But we can’t address any of these important issues when we are on the verge of government shutdown and default and continue to govern from one crisis to the next.

A government shutdown would be bad for our economy which is still recovering from the worst recession since the great depression and would impact services and people throughout Illinois, including:  

  • Social Security Administration: Social Security, Veterans disability & unemployment benefits could be delayed if the shutdown is prolonged. Medicare and Medicaid payment processing could also be delayed.
  • Taxes: Taxpayers submitting income tax returns through the mail would not immediately receive refunds.
  • Small Business Administration: Small businesses seeking loans from the SBA would be put on hold.
  • Mortgages: Mortgage loans would be delayed because the Federal Housing Administration would close.
  • Student Loans: New federal student-loan applications to help pay for college would not be processed. 
  • Passport Services: Individuals who are planning a trip and need a passport could get stuck in limbo as passport services shut down.
  • Federal Employees: All of the 50,000 federal employees and government contractors in Illinois would not be paid.
  • Historical Sites: The doors to national parks, forests, and monuments, such as Reagan's childhood home in Dixon, Lincoln's home in Springfield and Shawnee National Forest would be closed.

It’s time to stop governing from crisis to crisis and work together to pass a budget which builds on the economic recovery we’ve seen in the last 5 years, creates jobs and strengthens the middle class.