- At this point it appears likely that Congress will not be able to reach agreement on a continuing resolution to fund the federal government when the existingMessage 1 of 1 , Sep 30, 2013View Source
At this point it appears likely that Congress will not be able to reach agreement on a continuing resolution to fund the federal government when the existing continuing resolution expires at midnight, and the federal government will shut down tomorrow. However, the Securities and Exchange Commission will remain open for the time being. The SEC's Office of Public Affairs has released the following statement:
"The SEC will be able to stay open in the event of a funding lapse because we have carryover funds available. Unlike most other agencies, our appropriations language provides that our funds “remain available until expended.” It is not uncommon for us to have carryover balances at the end of a fiscal year, and we have determined that our carryover balances are sufficient to allow us to remain open for a few weeks if there is a lapse of appropriations."
The federal banking agencies have separate funding sources and will remain open through the shutdown. The Commodity Futures Trading Commission will shut down, as will most other federal agencies. The federal judiciary will use fees and no-year appropriations for an estimated 10 business days (through approximately October 15); after that point they will continue to hold jury trials and resolve cases, but only essential staff will report to work, with each court deciding which staff are essential.
Under the Antideficiency Act, 31 U.S.C. 1341, 1342, 1517, the federal government may not accept voluntary services or employ personal services exceeding that authorized by law except for emergencies involving the safety of human life or the protection of property. Each agency has a shutdown plan designating how and to the extent it will continue to perform emergency services during a shutdown. For example, if the SEC shuts down after its funds are all expended, it will continue to handle emergency litigation matters and EDGAR will continue to operate, but non-emergency litigation and examinations, review and acceleration of registration statements, review and approval of applications for registration (e.g., from investment advisers), interpretive guidance, and the like will be discontinued.
The government shutdown is separate from the need to increase the federal government’s borrowing limit in order to prevent a default on federal debt. That would be a much more serious matter. Treasury Secretary Jacob Lew has estimated that federal borrowing capacity will be exhausted no later than October 17.
Agency contingency plans, including those for the SEC and the CFTC, are linked at
The federal courts' contingency plan has been put online at
Lew’s letter with the October 17 estimate is at
John M. Baker
Stradley Ronon Stevens & Young, LLP http://www.stradley.com
1250 Connecticut Avenue, NW, Suite 500
Washington, DC 20036
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