US shutdown threatens 2,000 long-term disaster recovery projects: White House

The partial shutdown of the US federal government could impede nearly 2,000 long-term disaster recovery projects, the White House has warned.

A budget impasse in the Republican-controlled House of Representatives, which the White House blames on far-right Republican lawmakers, is nearing a government shutdown over the weekend

In a statement on Thursday, the White House said the Federal Emergency Management Agency’s Disaster Relief Fund, already under strain by multiple natural disasters, would result in a delay of nearly 2,000 long-term recovery projects in communities across the country.

It cited a variety of rebuilding projects that would face delays, including the Wilson County School in Tennessee, a senior citizens center in New Jersey and hundreds of millions of dollars worth of projects from 2022 Hurricane Ian in Florida.

The White House on Monday had warned a shutdown would result in a rapid loss of food benefits for nearly 7 million low-income women and children.

The federal government would begin to shut down if funding is not secured by Sunday, Oct. 1, the start of the new fiscal year.

A new 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.

Can the shutdown be averted?

Meanwhile, the Democratic-controlled Senate plans to hold a procedural vote on a short-term spending measure on Thursday. This measure has already been rejected by Republican House Speaker Kevin McCarthy. On the other hand, the Republican-controlled House is continuing to vote on amendments to appropriations bills that have little chance of becoming law and won’t prevent a shutdown on their own.

(With inputs from agencies)