NLBMDA Provides Government Shutdown Update

As Republicans and Democrats remain at loggerheads, the NLBMDA has provided the update below on where the government shutdown stands:

For the first time since 2019, the U.S. federal government has failed to extend federal appropriations due to an impasse between Senate Democrats and Republicans, failing to reach a deal before 12:01 a.m. on Wednesday October 1 when funding for a majority of government agencies expired. 

Since the shutdown began last week, federal agencies have activated contingency plans, furloughing tens of thousands of employees while retaining only those needed to carry out essential functions.

Later today (Oct. 6), the Senate is scheduled to reconvene for a fifth vote on a House-passed funding bill that would keep the government open through November 21. The continuing resolution is a straightforward seven-week extension of existing funding levels, adjusted for inflation, and notably omits any “policy riders.” 

The main source of disagreement between Senate Democrats and Republicans centers on how to address expiring tax credits established under the Affordable Care Act. Senate Democrats have stated that any negotiations on government funding should include negotiations on how to address the expiring tax credits. Republican leader have rejected that approach, arguing that negotiations can be saved for a later date.

In a meeting with the House Republican Caucus over the weekend, House Speaker Mike Johnson (R-LA) told lawmakers that the House of Representatives will not reconvene until the Senate successfully passes the funding bill, which it narrowly passed on September 19.

While impacts to the lumber and building materials industry are currently minor, a prolonged government shutdown could be costly due to broader damage to the economy and the residential construction sector. Government shutdowns also limit NLBMDA’s ability to effectively advocate for industry priorities on Capital Hill. 

“NLBMDA is calling on federal lawmakers to reach an agreement to fund the government,” said NLBMDA President & CEO Jonathan Paine. “As suppliers to the residential construction industry, we know that prolonged shutdowns can weaken housing demand and restrict mortgage availability, leading to stagnation across the housing market. It is critical that Congress acts swiftly to restore funding to ensure macroeconomic impacts remain minimal.”

NLBMDA says it will continue to monitor developments in Congress and advocate for a timely resolution to the funding impasse.