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Congress must pass legislation continuing current funding levels—a continuing resolution (CR)—and the president must sign it by midnight on Saturday, Sept. 30, to avoid a partial government shutdown and the furlough of hundreds of thousands of federal workers. As of Friday morning's newsletter publication deadline, both sides remained at an impasse.
Standing in the way of the passage of a CR is a small group of House Republicans rejecting the spending levels for the fiscal year 2024 set in the debt limit deal House Speaker McCarthy negotiated with President Biden in May.
Early today, House Republicans rolled out a plan for a short-term spending bill that would extend funding through the end of October but impose significant across-the-board cuts with exemptions for national defense, the Departments of Veterans Affairs and Homeland Security, and disaster relief. It is to be determined if this bill can pass the House. Even if it clears the House, it is unlikely to pass the Democratic-controlled Senate.
The Senate advanced a stop-gap measure of its own earlier this week. The Senate CR would extend federal spending until Nov. 17, authorize roughly $6 billion each for domestic disaster response funding and aid to Ukraine, and extend the expiring authority of the Federal Aviation Administration (FAA).
However, McCarthy has rejected the Senate’s bipartisan CR outright, and federal agencies have begun to prepare for a shutdown.
So, what could a partial shutdown mean for transportation?
Generally, a lapse-of-appropriations shutdown equals an inability to incur new obligations. However, positions and programs funded by the Highway Trust Fund (HTF) or the five-year advance appropriations from the General Fund in Division J of the 2021 Infrastructure Investment and Jobs Act are protected during a shutdown. The bipartisan infrastructure law authorized HTF expenditures through FY 2026 and provided the necessary funds. Accordingly, the Federal Highway Administration and Federal Transit Administration would remain open, and construction would continue on most federal-aid highway, bridge, and public transportation projects.
Employees funded from the General Fund through annual appropriations would be furloughed, except for positions deemed necessary for protecting life and property and continuing other essential responsibilities. These employees continue working without pay during a lapse-of-appropriations shutdown.
What about the FAA?
The FAA is facing a double whammy—a potential lapse of federal funding and an expiration of the authorizing legislation for the agency. If both were to expire, air traffic controllers and some aviation safety inspectors would continue to work without pay. But FAA personnel are paid out of the General Fund and would be furloughed if not exempt. In addition, the Airport & Airway Trust Fund, which funds programs like the Airport Improvement Program, would lose more than $50 million daily from expired airline ticket and fuel taxes.
During a government shutdown, U.S. air travel continues. Still, travelers will likely encounter significant delays and longer wait times based on past shutdowns, according to the White House.
AASHTO pushes for full-year funding
Meanwhile, the American Association of State Highway and Transportation Officials sent a letter to Senate and House leadership urging swift passage of the fiscal year 2024 transportation appropriations bills.
“As we have experienced in the past, disruptions from a lapse in appropriations or a series of short-term CRs will impede the ability of state DOTs to translate Congressional mandates and funding in the IIJA into tangible surface transportation programs and projects,” AASHTO said.
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