PROVIDENCE – As the partial federal government shutdown drags on, local effects on those reliant on federal programs and those furloughed as federal employees become more and more pronounced.
The R.I. Department of Labor and Training estimated Thursday the shutdown may be affecting roughly 2,000 Rhode Island-based federal employees. That is out of approximately 11,000 federal employees in the state. An updated figure is expected soon.
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Nationally, paychecks for some 800,000 government employees have been halted amid the lapse in federal funding, including about 420,000 who have been forced to work anyway.
The Trump administration called back some 46,000 furloughed employees, according to an updated contingency plan released Tuesday, with many put to work issuing tax refunds even though the Treasury Department previously decided a shutdown would bar the activity. The recalled workers will inspect planes, issue tax refunds, monitor food safety and facilitate the sale of offshore oil drilling rights.
Still, many federal workers remain out of work or unpaid, and affected agencies will begin to run out of allocated funds if the shutdown continues for too long.
“This senseless shutdown is hurting working people here in Rhode Island and across America. Each week, it costs our economy more than $1 billion,” said Rep. David N. Cicilline, D-R.I., on Monday.
The partial shutdown has affected nine federal departments:
- Agriculture Department
- Commerce Department
- Department of Homeland Security
- Department of Housing and Urban Development
- Interior Department
- Justice Department
- State Department
- Transportation Department
- Treasury Department
The local impacts of each department’s shutdown vary and aren’t immediately clear. However, some local effects are becoming more pronounced as the shutdown draws on.
SBA loans
Local lenders have acknowledged that U.S. Small Business Administration-backed loans are not being approved during the shutdown, delaying the funding, though a few local lenders that PBN has spoken to assured companies that other loan opportunities still exist.
SEED Corp. noted the shutdown has affected its ability to issue SBA 504 loans – as the SBA has been furloughed and is not approving loans – but the organization is still offering other small-business loans.
Navigant Credit Union told PBN that SBA-backed loans made up roughly 10-15 percent of all loans and the shutdown has affected its ability to issue at least one loan so far. Navigant also said the credit union is working to offer different loans to small businesses in lieu of a standard 504 or 7(a) SBA-backed loan.
“What we are trying is to find ways to still make the loans that are being requested on the small-business side, trying to see what our risk mitigators are, but not shutting the door and saying ‘Hey, the SBA is closed, so we’re closed.’ That’s the last thing we’re trying to do,” said Tim Draper, vice president of marketing at Navigant Credit Union.
Draper added that the credit union will also line up SBA-backed loans during the shutdown.
“If we know its a solid deal and it makes sense, then there’s no reason not to gather all of the information needed and start the process to get […] an approval in place pending the SBA final approval,” he said.
Airports
The Transportation Security Administration is among one of the agencies hit by the shutdown, with employees being asked to work without pay. Traditionally, federal workers that work without pay are granted back pay from Congress following the reopening of the affected departments.
It wasn’t immediately clear as of Thursday if operations at T.F. Green Airport have been affected in any significant manner beyond that of unpaid workers.
“Our employees strongly oppose being collateral damage in this prolonged government shutdown,” said Frank Womack, an American Federation of Government Employees Region 2 representative at a demonstration at T.F. Green with the Rhode Island delegation this week. “Many of our employees – including TSA agents here at T.F. Green Airport – cannot afford to miss a single paycheck without falling behind on their mortgage, car payments and other financial obligations. Sadly, these hardships are only getting worse and more widespread as the shutdown drags on. The government must be reopened immediately so our employees can collect the pay they’ve rightly earned.”
Breweries and distilleries
The federal agency responsible for approving new beer labels is not currently functioning, delaying the packaging of new beers, potentially affecting upcoming seasonal offerings, or new products from local breweries or distilleries.
U.S. Coast Guard
The U.S. Coast Guard, under the jurisdiction of the Department of Homeland Security, has not paid its active-duty members during the shutdown. Other military personnel, under the jurisdiction of the Defense Department were not affected.
State operations
The R.I. Department of Revenue said it had not seen an effect of the federal shutdown on revenue as of this time.
The R.I. Department of Human Services: Local officials have noted that Supplemental Nutritional Assistance Program benefits for February will be distributed in their entirety on Jan. 20 in Rhode Island.
“Prolonging the shutdown has devastating consequences to thousands of Rhode Islanders, the small businesses who serve them and our overall economy,” said DHS Director Courtney E. Hawkins Monday. “Depending on how long the shutdown goes on, we are talking about tens of millions of dollars in benefits. The state of Rhode Island, like most states, is not in a position to be able to foot the bill for all of these federal obligations, which is why we need the president to end the shutdown and ensure that the nation’s safety net is not at risk.”
DHS also asked that customers who have recertifications due in the month of January to submit them on or before Jan. 20 so DHS can process the certifications.
The Rhode Island Community Food Bank issued a statement this week saying it expects reliance on the food bank to increase if the shutdown persists.
“We’re concerned that many more families will start visiting our pantries and meal sites beginning in February, as they begin to run out of food,” said food bank CEO Andrew Schiff. “Although we hope the shutdown ends soon, we need to be prepared to respond should it continue indefinitely.”
The R.I. Public Transit Authority: “The federal shutdown is not affecting RIPTA’s operations at this time,” said a RIPTA spokeswoman Thursday. “We are monitoring the situation closely and working with our Finance Department to make sure we are able to manage our cash flow so that day-to-day operations are not affected.”
The R.I. Department of Transportation: “Regarding the federal shutdown, we have not delayed any projects. We have managed our finances in such a way as to provide for continuity as long as possible,” said a RIDOT spokesman Thursday.
Local services and municipalities have also reached out to affected federal workers in Rhode Island:
The Rhode Island Student Loan Authority has suspended student loan payments for federal employees during the shutdown, including military personnel.
American Labor Services is offering temporary jobs to federal workers in Rhode Island and in Massachusetts to fill clerical positions and labor positions until the partial shutdown ends.
“Friday marked the first day some federal employees did not receive their paycheck. It is, quite frankly, unacceptable for these workers to be struggling with their bills when they perform a public service,” stated Ben Kaplan, president of American Labor Services. “I feel it is our responsibility to help these individuals, especially when there doesn’t seem to be an end in sight for the shutdown.”
Cox Communications is offering a deferred payment option to federal workers for future and outstanding payments.
The City of Newport is allowing affected workers to delay certain bill payments such as sewer, water and real estate taxes at no interest.
Roger Williams University is hosting a dinner for unpaid active-duty Coast Guard members and National Oceanic and Atmospheric Administration workers at its Upper Commons dining hall on RWU’s Bristol campus from 5-7 p.m. on Monday.
The YMCA of Pawtucket and its branches are offering refunds and waiving membership fees for furloughed employees facing financial hardship due to the government shutdown until the shutdown ends
Chris Bergenheim is the PBN web editor. Email him at Bergenheim@PBN.com.
