Congressmen Gonzalez and Cuellar Release Statement Regarding Local Impacts of a Government Shutdown

WASHINGTON – Congressmen Vicente Gonzalez (TX-15) and Henry Cuellar (TX-28) released the following statement today regarding negative effects of a government shutdown on Hidalgo County and the state of Texas:

"The last time the federal government shut down, it cost our country $1.5 billion daily and our gross domestic product fell by 0.3 percent due to a reduction in hours worked by federal employees. A government shutdown hurts our communities in South Texas, and takes a toll on our most vulnerable populations – our children, seniors, military personnel and families, and people with disabilities.

"During a shutdown, an estimated 1.3 million brave men and women – our military service members – must work with the uncertainty of pay. As many as 200,000 hardworking federal employees in Texas could face furlough, which means that they will not get back pay, and could be subject to financial instability.

"A shutdown has far-reaching effects on the families we represent. Thousands of federal employees in Hidalgo County could be affected by a shutdown. Every household depends on a steady paycheck so that they are able to afford childcare and groceries, and keep up with mortgage payments, student loans, tuition, or rent.

"There will be limited access to significant national refuges, including the Santa Ana National Wildlife Refuge and Laguna Atascosa National Wildlife Refuge. These U.S. Fish and Wildlife Service-administered sites generate millions in yearly revenue and attract visitors from all over the world. Without a path forward to fund the government, these parks cannot offer all the services they normally provide and South Texas businesses will suffer.

"To our constituents in Hidalgo County and across South Texas, we will continue standing with you and voting to keep the government funded. We are determined to work with our colleagues, in a bipartisan way, to find long-term solutions to the challenges we face in Congress. In a time of great uncertainty, we owe you that and more."

The following are federal are affected by a government shutdown:

Social Security, Medicare, and Affordable Care Act Beneficiaries:

• Social Security, Medicare, and the Affordable Care Act are part of the mandatory budget and, therefore, these programs would remain in operation;
• All Social Security checks would be sent to beneficiaries;
• Services in Social Security field offices and processing centers would be limited;
• No new or replacement Social Security cards or updated earnings would be processed.

Veterans:

• Department of Veterans Affairs disability claims would be backlogged as new claims are submitted;
• Important veterans' services would be halted, such as services that help veterans understand benefits, education call center, and all regional offices would be closed;
• Delayed access for veterans' workshops designed to help transition to civilian life and employment;
• Medical services for veterans would continue to be available during a government shutdown.

Military:

• Most Department of Defense budget planning and preparation would cease;
• Military personnel would not receive paychecks during a funding lapse;
• Military operations abroad would continue.

Small Businesses:

• Small businesses that contract with the federal government would be significantly impacted;
• The failure to receive government payment could see temporary contractors to be forced to either lay off employees or impose temporary regulations that could create financial hardship on small businesses;

• No new approvals of Small Business Administration (SBA) loans for business working capital, real estate investment, or job creation activities would occur;
• Agricultural export credit activity and other agricultural trade development and monitoring would cease.

Tourists:

• Disrupted tourism and travel by closing some national parks and other national tourist sites;

Home Owners:

• Potential delay in home loan decisions for low-income working families in rural communities;
• The U.S. Department of Agriculture's single-family loan guarantee pro­gram could face the inability to process loan applications during the shutdown, preventing el­igible families from receiving loans.

Communities and Cities:

• The Community Development Financial Institutions Fund would suspend its grants and technical assistance to communities across the country, delaying investments that finance businesses and create jobs in distressed neighborhoods;
• Department of Commerce grant-making programs for economic development would cease, as would most payments by the Department of Housing and Urban Development's Community Development Block Grant program to state and local governments.

###