US Federal Government Shut Down 2011

iTechWhiz (April 13, 2011) - America avoided a government shutdown late Friday, when the White House and congressional leaders agreed on a deal to fund the government through September, the end of the fiscal year.

But it is not over. Taxes and spending again take center stage in Washington, as Congress considers a budget deal for the remainder of the current fiscal year, and President Barack Obama unveils his long-awaited deficit reduction plan.

House Republicans are also expected to push for a vote by Friday on their budget proposal for the next fiscal year, which begins in October. That plan, which cuts roughly $6 trillion in spending over the next decade, while radically overhauling Medicare and Medicaid, is fiercely opposed by Democrats.

The budget battle has certainly been the buzz all over social media in the last week, including Twitter.

What is a Federal Government Shut Down

In US Politics, a Government Shutdown is when the government stops providing all services that are not essential. The services that continue despite a shutdown include Armed Forces, Police, Fire Fighting, Postal, Air Traffic Management, National parks, Passport Offices, Utilities and corrections. Shutdowns in the past have also affected the Washington, D.C. municipal government, putting a stop to utilities such as garbage collection.

Federal Government Shutdown causes a large number of civilian federal employees to be furloughed. The exact details of which government functions would stop during a shutdown is determined by the Office of Management and Budget.

Government Shutdown can happen when a legislative body cannot agree on a budget financing its government programs for a pending fiscal year. In the absence of appropriated funds, the government discontinues providing non-essential services at the beginning of the affected fiscal year.

What is going to happen before Federal Government Shut Down

The president said he will lay out his plan for long-term deficit reduction on Wednesday. That budget deal is expected to include $11 billion in cuts to mandatory spending programs. The House and Senate will vote this week on a plan to cut spending by $38.5 billion.

Two issues sure to get both parties fired up: The debate over raising the federal debt ceiling, and the 2012 budget. The House is scheduled to vote on the deal Wednesday, with the Senate following suit shortly thereafter.

Who will be Affected by Federal Government Shut Down

One could impact college students. According to CNN, it will include cuts about $11 billion in what are known as "Changes in Mandatory Programs," or CHIMPs, which involve programs funded for multiyear blocks that don't require annual spending approval by Congress.

Republicans opposed CHIMP cuts, because they only affect one year, with funding returning to the pre-authorized level in the following year.

Some of the so-called CHIMP programs affected include funding to explore health care co-ops included in the health care reform bill signed into law last year, as well as Pell Grants for college students, the source told CNN.

The $6 billion for the co-ops would get cut by $2.5 billion under the deal, while Pell Grant funding would get cut $500 million to eliminate grants for summer school and graduate students, according to the source.

The Environmental Protection Agency, a target of conservatives who oppose its regulatory power over industry, would get cut by $1.5 billion, half of the reduction sought by House Republicans, the source said.

In other cuts, Food Safety and Inspection Services would get $10 million less than last year, while Community Health Centers would get $600 million less. House Republicans wanted to cut the centers by $1 billion, the source said.