The United States federal government has run out of money, causing a shutdown on Wednesday that’s likely to impact the promotional products industry.
Following both Republican and Democratic funding proposals failing in the Senate on Tuesday, White House Office of Management and Budget Director Russell Vought told federal agencies they “should now execute their plans for an orderly shutdown.”
- Since the 1977 fiscal year, there have been 21 federal government funding gaps – some for as short as a day.
- The last shutdown, which began in December 2018 and lasted 35 days, was the longest in history.
- By the time the government reopened in January 2019, about $3 billion in U.S. economic activity was lost, according to the Congressional Budget Office.
Promo Perspective
As a result of the government shutdown, federal agencies are now operating under contingency plans, which may affect services and programs revolving around trade, small business support and regulatory oversight.
PPAI urges promo firms to be prepared for:
- Delays in federal procurement and contracting cycles.
- Disruptions in agency communications and services.
- Regulatory uncertainty from agencies like the Small Business Administration, Internal Revenue Service, United States Trade Representative and General Services Administration.
It’s important to note that U.S. Customs and Border Protection officers are still required to report to work as “essential” employees, but other staffing shortages may cause processing delays for cargo at ports of entry.
Meanwhile, tariff collections will continue, according to the Department of Homeland Security. DHS added that disaster payments by the Federal Emergency Management Agency and financial operations funded by U.S. Citizenship and Immigration Services fees would also continue.
PPAI’s advocacy firm, Thorn Run Partners, has compiled a comprehensive tracker of federal agency shutdown plans. This includes departments and agencies that influence supply chains, trade policy and procurement.
Read or download the full document below:
