Government Shutdown Enters Seventh Day as White House and Congress Clash Over Budget

Strategic Insights -

The partial government shutdown, the longest in history, entered its seventh day on Friday as President Clinton agreed to meet with top Republican and Democratic leaders in Congress to discuss a balanced budget plan. However, there is little sign of a breakthrough, and the shutdown is expected to continue with far-reaching consequences for millions of Americans.

Key Takeaways:

  • 260,000 federal workers remain furloughed as a result of the shutdown, affecting various government services, including national parks, museums, and loan applications.
  • 3.3 million veterans and 4.7 million families, comprising 13 million people, will not receive their benefit checks on time due to the shutdown.
  • House Republicans voted to recess for as long as 11 days over Christmas and the New Year, keeping part of the government shut down, while White House chief of staff Leon Panetta and key members of Congress resume discussions.
  • The major sticking points in budget negotiations remain the Republicans' insistence on a tax cut of $224 billion over seven years, along with major cutbacks in Medicare and Medicaid spending, which the president opposes.
  • Six governors from both parties are set to advise the budget negotiators on what to do about Medicaid, but they have failed to reach consensus on the issue.
  • The president has expressed his willingness to reopen face-to-face talks with Congress while the government remains partially shut down, in order to reach a balanced budget plan.

Statistics:

  • 383,000 people visit national parks daily in December
  • 80,000 people visit the Smithsonian museums, the National Zoo, and National Gallery of Art daily in Washington
  • 2,500 applicants for home-purchase loans and refinancings are affected by the shutdown at the Federal Housing Administration
  • 23,000 daily applicants for passports are affected by the shutdown from the State Department
  • $40 million in small business loans are affected by the shutdown daily from the Small Business Administration
  • 240 daily callers to the Environmental Protection Agency's "hotline" for water contamination outbreaks are going unanswered

Sources:

  • Knight-Ridder Washington Bureau (author not specified)
  • (c) 1995, Knight-Ridder Newspapers
  • Distributed by Knight-Ridder/Tribune Information Services