WASHINGTON–Today marks the first day government paychecks won’t be issued as a result of the shutdown, and while the CU Daily has extensively reported the offers of assistance credit unions have extended, those offers may have to last longer than in the past as some Washington pundits are noting “there’s no resolution in sight.”
For some workers, the Office of Management and Budget (OMB) and the Pentagon have been getting creative in providing funds for certain workers and members of the military, and for programs such as the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) program.
But for hundreds of thousands of others, the paychecks won’t be coming.
‘Hard-Knuckled’ Tactics
The administration is “…employing a mix of hard-knuckled, hyper-partisan pressure tactics — canceling energy and infrastructure projects in blue states, firing thousands of federal workers — coupled with aggressive funding moves to hammer Democrats while ensuring that critical government operations don’t shutter. This all has the effect of prolonging the shutdown,” noted Punchbowl News in its analysis.
While top Democrats have gambled that they can convince President Trump to cut a deal on extending Obamacare premium credits at the end of October, the “White House seems very comfortable with its position and is preparing for an extended shutdown,” the Punchbowl News report added.
Removing Pain Points
The report added that by “removing some of the most critical pain points of the shutdown — ones that could force Hill Republicans or Democrats to fold — the White House is effectively guaranteeing that the shutdown will last much longer. If the troops are being paid, WIC is funded and federal law enforcement officers receive paychecks, Senate Democrats who are thus far denying the requisite votes to reopen the government will feel much more comfortable dragging out the shutdown as they demand an extension of Obamacare enhanced premium tax credits.”
For credit unions, that would mean more than just one-time loans for many members. Many CU programs have caps on the amount that can be borrowed, in most cases interest-free, based on prior federal government shutdowns that did not last that long.
Analysts indicated Nov. 1 will be the next date to watch, as it’s when open enrollment begins for Obamacare programs.
