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LequteMan
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US government agencies were ordered to close for the first time in more than 17 years after Congress stalemated over Republican efforts to block President Barack Obama's health care law.
According to news.com.au, more than 800,000 federal workers are to spend Tuesday, the first day of the new fiscal year, on unpaid leave as agency managers execute contingency plans for the costly process of closing down operations indefinitely.
The official word to shut down came from the White House just before midnight Monday. Hours earlier, the Senate, by a 54-46 party-line vote, killed a House measure that would have funded government agencies for six weeks but delayed key parts of Obamacare for a year.
The stalemate happened because Congress failed to pass any of the annual laws, known as appropriations, that provide money for government agencies. Federal law says agencies cannot spend money without an appropriation except when necessary to protect life or property, or in cases of programs that have permanent sources of funds.
Widespread disruption of services probably will not occur for a while. Many basic government functions do not depend on annual spending bills. Social Security cheques will go out as always, for example, as will payments under Medicare. Mail delivery will be unaffected. Courts, which have reserve funds that can last for some time, will still hear cases.
But as other government functions close, economists say, a prolonged shutdown will slow growth. A two-week standoff would shave about three-tenths of a percentage point off the current growth rate, projections indicate. Although not huge, that punch would sting in an economy expanding at less than 2 percent per year. A longer standoff would cut growth more.
The last time the government closed, during the Clinton administration, two shutdowns took place. One lasted five days; the other, affecting only part of the government, ran three weeks.
