Dear Community Member,

In my limited time in Congress, there have been 29 continuing resolutions (CR) to keep the government open that have been voted on by the U.S. House of Representatives prior to this month’s CR.  Although I am not proud that Congress has relied on CRs that many times, I am proud that every one of those CRs were bipartisan and a result of negotiations between Republicans and Democrats.  Unfortunately, the Republicans currently in charge, with a Majority in the House and Senate and a Republican President in the White House, are unwilling to negotiate whatsoever with Democrats on the current CR.  

Speaker Mike Johnson and his Republican Majority in the House recently passed the CR without negotiating with Democrats.  For the Senate to pass the CR, however, Senate Majority Leader John Thune needs seven Democratic Senators to get past the Senate filibuster.  Nevertheless, Majority Leader Thune will not negotiate with Senate Democrats on the CR.  That Republican refusal has led to this shutdown of the United States Government.  

I am against federal government shutdowns as they harm lives and livelihoods. There are currently two million federal employees, including thousands in California’s 19th Congressional District.  Although a majority of federal workers, including those in our military, law enforcement, and other essential employees will be forced to work with backpay, many others deemed non-essential and contract workers will be prevented from working or receiving any pay.  Moreover, President Donald Trump, OMB Director Russell Vought, and Special Advisor Steven Miller have made it clear that they will use the shutdown as an opportunity to permanently fire people and further remake the federal workforce as they see fit.  

Democrats in the Senate and House are willing and ready to open the federal government and negotiate a CR or an annual budget that protects healthcare for working families.  President Trump’s purely partisan One Big Beautiful Bill (OBBB) that was signed into law in July will stop the enhanced health insurance premium subsidies for the Affordable Care Act (ACA), causing four million people to lose health insurance and healthcare premiums to double in cost for 22 million people.  Moreover, the OBBB makes major changes to Medicaid that could cause over 10 million people to lose healthcare insurance, close rural hospitals, and increase our healthcare costs.  That’s why Democrats are fighting to extend the ACA subsidies and restore the cuts to Medicaid.  Furthermore, I believe that we must rein in the President’s tariff fetish and frenzy by reclaiming Congressional authorities over trade under Article One of our Constitution so that we can stop the price increases that are being felt by all Americans.  

I firmly believe that the people of the United States are yearning for Democrats and Republicans to negotiate, compromise, and govern.  Unfortunately, for the past nine months the Republican Majority has abdicated its legislative authorities to the executive branch.  That is why Democrats will continue our fight to reclaim our Congressional power.  Nevertheless, I believe that it is never too late for Republicans and Democrats to live up to our obligation to govern by working together.  We must start now with negotiations to immediately reopen our federal government, protect healthcare, stop tariffs, and reduce prices.  Basically, it is time for the U.S. Congress to do its job by exercising our Constitutional power.

Below, you’ll find additional information about the shutdown and its impact on our community and country.  If you ever have any questions or concerns, please don’t hesitate to call or contact my office or send me a message through my website.

Please know that despite the government shutdown, my five congressional offices in Monterey, Santa Cruz, San Jose, Paso Robles, and Washington, D.C. are open and operating to serve you and the people of California’s 19th Congressional District.

Why Did the Federal Government Shutdown?

Under our Constitution, the United States Congress has the power of the purse. That means that Congress has the authority over most government funding decisions. Each year, Congress must pass spending bills before October 1st, the start of a new fiscal year, or the government runs out of money to keep functioning. Appropriations committees in the House and Senate are supposed to pass a dozen spending bills that cover the budgets for different federal agencies over the next year. Congress will often package a few or all of the 12 spending bills together into what is called an “omnibus” spending bill. Then the bills, in whatever shape, must pass both the full House and Senate before going to the president’s desk to be signed into law.

Lawmakers can pass a short-term funding extension to give themselves more time to hash out a full-year deal, called a continuing resolution or CR. However, if we can’t agree on a CR, the federal government will continue to be forced to suspend all but essential operations and, thus, shut down.

How Long Will the Government Shutdown Last?

It is difficult to predict how long the shutdown will last. There have been numerous shutdowns in the past four decades, 20 of which lasted at least one full day. The longest shutdown was the most recently, from December 21st, 2018 to January 25th, 2019, when the federal government was shut down for 34 days. Just like back then, both sides need to come together and negotiate a way to open the government.

What Happens During a Government Shutdown?

During a federal government shutdown, essential services related to national security and public safety, air traffic control, law enforcement, power grid maintenance and more continue. However, because those federal employees may not get paid, or it will be slow for them to get paid, certain essential services may be disrupted. Below, you’ll find additional information on how the shutdown of the federal government may impact you and your family:  

Federal Employees in California and Our 19th Congressional District
During a shutdown, a variety of services and programs throughout the 19th Congressional District as well as the state of California can be affected.  The almost 142,000 federal employees who live in California, including approximately 7,771 in the 19th Congressional District, would either be furloughed or required to work without pay. 

Social Security and Supplemental Security Income (SSI) Services
During a shutdown, recipients will continue to receive their Social Security and SSI checks. The Social Security Administration (SSA) will provide limited services like issuing Social Security cards and holding appointments for benefit applications. However, SSA will stop services like benefit verifications and processing overpayments. Customer service wait times also may dramatically increase.

Medicare and Medicaid Services
During a shutdown, current Medicare, Medicaid, and disability insurance beneficiaries will continue to receive their benefits assuming a shutdown lasts less than three months.

Veterans Affairs Services
During a shutdown, all Veterans Affairs (VA) medical facilities and clinics will remain operational.  The VA will continue to process veterans’ benefits. However, veterans will be affected by the shutdown of other services that they count on, including education and job training, support for veteran-owned businesses, and even assistance for homeless veterans.

US Postal Service
During a shutdown, the U.S. Postal Service is not affected.

U.S. Military Personnel and Federal Law Enforcement
During a shutdown, the over 213,000 active duty and reserve personnel in California who serve our nation’s armed forces will be working without pay. Nationally, one in three service families have less than $3,000 in savings, which is not enough to cover the cost of housing and daycare in most places. On-base non-acute health care will cease, although off-base care provided through Tricare will not be affected. On-base childcare will be open on a case-by-case basis.  Federal law enforcement will also be required to work without pay for the duration of a shutdown.

Military and Federal Retiree Benefits
During a shutdown, military and federal retirees will continue to receive their retirement benefits. Processing new applications or other requested changes will be delayed.

Air Travel
During a shutdown, air traffic controllers, Transportation Security Administration (TSA) officers, and Customs and Border Protection (CBP) agents will remain on the job without pay. If some do not report to work, as has happened in prior shutdowns, there will be significant delays and longer wait times across the country.

Passport Services
During a shutdown, consular services, passport services, and visa services are expected to continue.  In a prolonged shutdown, passport and visa issuance could be slowed. Access to passport agencies located in some government buildings may be limited. 

Food Assistance Programs
During a shutdown, the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) could run out of funding and be unable to provide food for children and parents in need.  Supplemental Nutrition Assistance Program (SNAP) benefits also may be affected in the case of a prolonged shutdown.

Housing Programs
During a shutdown, the Federal Housing Administration (FHA) will stop insuring some new mortgages and the Department of Housing and Urban Development (HUD) will stop processing some new loans.  The Department of Agriculture (USDA) will stop new loan and loan guarantee activity.  The VA will continue to guarantee home loans.  Funding for federal housing assistance programs, such as Housing Choice Vouchers, may be jeopardized in a prolonged shutdown.

National Parks and Monuments
During a shutdown, services that require National Park Service staff, including trash removal and operating campgrounds and concessions, may be stopped. Closures will be determined on a location-by-location basis. For example, open-air parks and monuments in Washington, D.C. will likely remain accessible. However, the Smithsonian museums may be impacted by a lengthy shutdown.

The Economy and Credit Rating
During a shutdown, both the public, who face service and program disruptions, and federal employees, who are either furloughed or required to work without pay are affected. A prolonged shutdown could hurt the economy. An economic assessment from Goldman Sachs estimated a federal shutdown would subtract 0.2 percent points from fourth-quarter GDP growth each week it continues, according to a report issued Wednesday. According to the Congressional Budget Office, the 2018-2019 partial shutdown cost an $11 billion shortfall in economic output in the following two quarters, including $3 billion that the U.S. economy never regained.

Credit agencies have warned that brinkmanship and political polarization are harming the U.S. financial outlook. Moody's, the last major ratings agency to rate the U.S. government "AAA" with a stable outlook, recently stated that a shutdown would harm the country's credit rating. Fitch, another major ratings agency, already downgraded the U.S. government to "AA+" after Congress flirted with defaulting on the nation's debt earlier this year.

Small Businesses
During a shutdown, the Small Business Administration (SBA) will stop processing new business loans, such as through the 7(a) and 504 programs. However, SBA’s Disaster Loan Program will continue regular operations.

State and Local Services
During a shutdown, state or local services should not be immediately affected.  However, with federal funding cut off, some state or local governments may have to change their operations. Check with state and local agencies for specific questions.

What am I Doing to Prevent Government Shutdowns? 

In order to prevent future federal government shutdowns, I helped author and introduce the bipartisan and bicameral Prevent Government Shutdowns Act. This bill would require that if appropriations work is not done on time, all Members of Congress must stay in Washington, DC, and work until the spending bills are completed. The law would prevent a government-wide shutdown, continue critical services and operations for Americans, and hold federal workers harmless while Congress completes appropriations.

This legislation incentivizes Congress to process bipartisan spending bills and fund the government on time. Shutting down the government does not solve the problem. It creates new problems. But currently, there are very limited methods to focus Congress on the national debt. Forcing Congress to stay in D.C. until the budget work is done is the most effective way to get Congress to actually get the government funded on time. This is a commonsense, non-partisan solution to help federal families and services during a shutdown and put pressure on lawmakers to do our job.

What Happens Next?

A standoff like this one typically ends with a bipartisan vote on a compromise bill to fund the government for a few months, which gives Congress enough time to hammer out and pass the 12 full-year spending bills. We will continue to be ready and willing to open the government, protect healthcare, and lower prices.  

How I will Continue to Serve You

Although I will be in Washington, D.C. working to open up our government, please know that my offices will be open, and my staff will be working to serve you. I will share another update soon, and continue to update the 2025 Government Shutdown landing page on my website with details on how a shutdown may impact our communities and country.

If you have any further questions, concerns, or issues with the federal government, please know that you can continue to contact my offices. All five offices of my congressional offices will continue to be to provide constituents with essential services.

Sincerely,

Jimmy Panetta
United States Representative
19th Congressional District, California