With Congress at an Impasse, Government Shutdown Looms

What happened: The Senate Sept. 19 rejected a House-passed continuing resolution (CR) to keep government funding intact through Nov. 21. Senate Republicans were unable to attract the Democratic votes required to pass. Congressional Democrats are seeking to negotiate terms of the measure to advance their priorities.

Without a deal, government spending for most programs is set to expire Oct. 1, triggering a government shutdown.

Why it matters: Core highway and public transportation spending have been largely unaffected during prior government shutdowns, due to the unique budgetary nature of Highway Trust Fund (HTF) programs.

The Trump administration March 12 released guidance during the last potential shutdown that followed past precedent of holding harmless surface transportation programs. However, updated guidance has not yet been released, adding some uncertainty to the current situation.

If government spending lapses and the administration follows past practice, HTF spending, including reimbursements to the states, would continue unimpeded. Federal Highway Administration and Federal Transit Administration employees would work through a shutdown, as administrative and salary expenses are supported by the HTF.

What’s next:  The Senate is returning the week of Sept. 29 to try and come to an agreement, but the House is planning to remain on recess. Dean Franks and Lauren Schapker are the contacts.