With a mere six legislative days left for Congress to reach an agreement and avoid a government shutdown on September 30, the clock is ticking for negotiators as well as the federal agencies and programs that rely on regular funding. Policymakers in both chambers have warned that a shutdown is imminent as there is not enough time to pass an omnibus funding bill and efforts to progress a stopgap funding measure have not been fruitful. “It’s not September 30th yet…we are going to solve this problem,” said House Speaker Kevin McCarthy optimistically. Speaker McCarthy has pledged to keep the House in session over the weekend to continue work to find a compromise.
What would a government shutdown mean for public gas systems?
If Congress does not reach an agreement on the regular spending bills and does not pass a stopgap measure to maintain current funding levels (a continuing resolution), the federal government will not be able to spend any additional money after September 30, apart from a small percentage of carryover funds if available. While most Americans are not directly affected by a shutdown, and historically gaps in funding do not last very long, the impacts are not to be dismissed.
Thousands of public gas system customers rely on programs like the Low Income Home Energy Assistance Program (LIHEAP) to pay their energy bills. In the event of a lapse in funding, LIHEAP would be forced to operate on a fraction of the budget it needs to serve individuals and families in need. The winter season is often the greatest time of need for those who rely on LIHEAP funding to heat their homes. Not only would funding for direct assistance be extremely limited during the coldest part of the year, but the distribution of this funding would likely be delayed due to staff furloughs.
APGA member utilities are also closely following several different developments within federal agencies like the Pipeline and Hazardous Materials Safety Administration (PHMSA) and the Department of Energy (DOE). In the event of a shutdown, hundreds of agency employees would be furloughed and unable to continue regular operations resulting in delays in grant funding and regulatory rulemaking processes as well as difficulties communicating with agency staff.
Many public gas utilities serve populations with significant numbers of government employees. When thousands of employees are deemed “non-essential” and are furloughed, they stop receiving regular pay. Public utilities should be aware that their customers might experience these disruptions.
APGA staff will continue to encourage Congress to act swiftly in order to fund the government and avoid costly lapses in important resources.
For questions on this article or if you are interested in any of our advocacy efforts around the appropriations process, please contact Joshua St.Pierre of APGA staff by phone at 202-407-0015 or by email at jstpierre@apga.org.