Government shutdown continues, crippling IRS tax services

Spread the love

Nine days into the government shutdown, Congress once again failed to re-open the federal government on Thursday.

All but three Democratic senators are refusing to cross the partisan divide, demanding that Republicans include a costly extension of the pandemic-era enhanced Obamacare Premium Tax Credits in any government funding bill.

Republican leaders, however, refuse to negotiate health care policy until Democrats provide the necessary votes on Republicans’ clean Continuing Resolution. The CR would end the shutdown and keep agency funding on cruise control for seven weeks.

“To Democrats, this is just a political game. [Senate Minority Leader] Chuck Schumer told the press yesterday that ‘every day gets better for us,’” Senate Majority Leader John Thune, R-S.D., said Thursday. “To Republicans, this is not about which party wins or loses. This is about getting the government open for the American people.”

So far, both sides seem content to wait for the other out, despite hundreds of thousands of federal workers on unpaid leave, air travel delays across the country, and a suffering U.S. economy. Each week the government remains closed, an estimated $15 billion in Gross Domestic Product is lost, as The Center Square reported.

Most recently, the Internal Revenue Service furloughed 34,429 employees – 47% of its workforce – and announced Wednesday that it is halting some tax services.

These include responding to taxpayer questions, processing Non-Disaster Relief transcripts, and most administrative functions “not related to the safety of life and protection of property.”

Only federal agencies and operations deemed “essential” – including national security, law enforcement, Border Patrol, outbreak monitoring, and emergency response – remain fully open, with “essential” employees working without pay.

But the Food and Drug Administration’s routine food facility safety inspections and the Environmental Protection Agency’s inspections of water systems, chemical facilities, and hazardous waste sites are currently halted.

National parks and museums have closed, clinical trials at the National Institutes of Health are interrupted, and applications for federal housing or small business loans are not being processed. Federal food assistance programs are in danger of running out of resources if the shutdown drags on for weeks.

Most Americans will not immediately feel the effects of a government shutdown, however. They continue to receive their mail, Social Security benefits, Medicare, Medicaid, and veterans’ benefits. These services can remain open because the U.S. Postal Service is almost entirely funded by its own revenue and the entitlement programs are funded by mandatory spending, which automatically renews without congressional approval.

Federal budget watchdogs are urging Congress to pass a CR and finish the regular appropriations process, without adopting any expensive health care add-ons.

“Reopening the government should not be conditioned on more federal borrowing,” Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said Thursday.

“With interest costs surging and the national debt approaching record levels as a share of the economy, there’s simply no excuse for our elected officials to make a functioning government contingent on more borrowing.”

The national debt surpassed $37 trillion earlier this year.

Leave a Comment





Latest News Stories

Do No Harm expects FTC to take action to protect minors from transgender procedures

Do No Harm expects FTC to take action to protect minors from transgender procedures

By Tate MillerThe Center Square (The Center Square ) – After submitting comments to the Federal Trade Commission's public inquiry on how the child transgender industry has harmed and deceived...
2024 was deadliest year for journalists on record

2024 was deadliest year for journalists on record

By Bethany BlankleyThe Center Square Last year was the deadliest year for journalists on record, with the Gaza Strip being the deadliest location, according to multiple reports. Totals vary depending...
Govt shutdown raises concerns over national security

Govt shutdown raises concerns over national security

By Andrew RiceThe Center Square As partisan divides appear to deepen and prolong the partial government shutdown, bipartisan lawmakers said they are concerned about national security effects of the funding...
Ex-speaker Madigan to begin 7.5-year prison sentence Monday

Ex-speaker Madigan to begin 7.5-year prison sentence Monday

By Jim Talamonti | The Center SquareThe Center Square (The Center Square) – One day before the Illinois General Assembly’s fall veto session is scheduled to begin, one of the...
Screenshot 2025-10-08 at 9.40.44 AM

Casey to Demolish Dilapidated Downtown Building for $42,120

Article Summary: The Casey City Council has awarded a $42,120 contract to Dirt Work Incorporated for the demolition of a dangerous and unsafe building at 204 S. Central. The city...
Trump says new 100% tariff on China as trade war escalates

Trump says new 100% tariff on China as trade war escalates

By Brett RowlandThe Center Square President Donald Trump on Friday said imports from China will face a new 100% tariff "over and above" existing import taxes on the world's second-largest...
Arizona congressman calls for end to government shutdown

Arizona congressman calls for end to government shutdown

By Chris WoodwardThe Center Square U.S. Rep. Abe Hamadeh, R-Arizona, wants Democrats to “come to their senses” and end the government shutdown. Hamadeh told The Center Square that Democrats’ reasons...

WATCH: Pritzker continues encouraging ICE protests after Guard blocked

By Greg Bishop | The Center SquareThe Center Square (The Center Square) – With the National Guard’s deployment in Illinois for public safety blocked by a federal judge, Gov. J.B....
Illinois quick hits: Ag incentives announced; Cook County announces increased budget

Illinois quick hits: Ag incentives announced; Cook County announces increased budget

By Jim Talamonti | The Center SquareThe Center Square Ag incentives announced The Illinois Environmental Protection Agency and the Illinois Department of Agriculture have announced $67 million in funding to...
Former board member expressed concerns about indicted DeKalb superintendent

Former board member expressed concerns about indicted DeKalb superintendent

By Kim Jarrett | The Center SquareThe Center Square (The Center Square) – A former DeKalb County School Board member told The Center Square in 2023 she had concerns about...
Fiscal Fallout: Illinois has among highest-paid state employees

Fiscal Fallout: Illinois has among highest-paid state employees

By Jared Strong | The Center SquareThe Center Square (The Center Square) – The average wages for Illinois state employees are among the highest in the nation and belie the...
Report: State reliance on federal funds up significantly since 1990s

Report: State reliance on federal funds up significantly since 1990s

By Tate MillerThe Center Square States rely on federal dollars more than they have in modern history, according to a new report, with one of the report’s authors saying such...
Southwest low on list of safest states; Northeast at the top

Southwest low on list of safest states; Northeast at the top

By Dave MasonThe Center Square The Northeast corner is the safest part of the U.S., according to a new WalletHub study. The Southwest? Not so much. Issues such as high...
Trump administration begins axing positions of furloughed federal workers

Trump administration begins axing positions of furloughed federal workers

By Thérèse BoudreauxThe Center Square The Office of Management and Budget will begin eliminating thousands of civilian positions across the federal government, fulfilling the Trump administration’s plan to use the...
Washington state attorney general agrees to protect seal of confession

Washington state attorney general agrees to protect seal of confession

By Tim ClouserThe Center Square The Washington State Attorney General's Office reported on Friday that it has reached an agreement with the Catholic Church over a new abuse reporting law....