Portions of US govt shuts down, employees on furlough

New Delhi, Oct 1 (IANS) Large portions of the US government officially shut down on Wednesday as US President Donald Trump and Congress could not reach an agreement on a spending bill, resulting in thousands of non-essential federal employees being placed on leave.

The closure, initiated by the expiration of a stopgap funding measure on September 30, will disrupt services across government agencies. Despite the shutdown, Social Security and Supplemental Security Income payments will continue uninterrupted for approximately 74 million Americans.

Medicare, and Medicaid payments will proceed, but the Social Security Administration announced that 12 per cent staff will be furloughed, resulting in a pause in marketing campaigns, according to multiple reports.

The Supplemental Nutrition Assistance Program, which is US' largest food aid program, and the Special Supplemental Nutrition Program for Women, Infants and Children, known as WIC, would continue operations during a shutdown, as per an official statement.

The Internal Revenue Service announced it will maintain full staffing for five days, but the department did not mention what will happen to the 75,000 employees if the shutdown extends beyond five days.

Over 13,000 air traffic controllers and the majority of Transportation Security Administration staff will remain on duty without compensation until the shutdown ends. The Pentagon confirmed that 2 million active-duty military personnel and National Guard forces will continue to serve without pay.

US Justice Department staff overseeing the immigration court system will continue to function as President Trump declared illegal immigration a national emergency. Employees that communicate with state and local officials about immigrant arrests will also keep working, according to an official statement.

Key economic data publications, including those of employment and GDP reports of critical importance to policymakers and investors, will be suspended.

Around 4,000 Federal Emergency Management Agency (FEMA) employees will be furloughed, according to an agency statement.

Further data on marginal growth in US job openings in August has bolstered expectations for additional easing by the Federal Reserve, with traders pricing in a 97 per cent likelihood of a 25-basis-point reduction this month and a 76 per cent chance in December.

--IANS

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