Given the increased chatter about the likelihood of a government shutdown as we race towards the impending funding deadline of January 30, we wanted to provide a quick update.
In a funding update message sent on January 15, NAGGL noted that we were carefully watching whether the Financial Services and General Government (FSGG) bill—the funding vehicle that includes SBA funding and authorization—would be attached to other, more controversial funding bills, such as the Department of Homeland Security (DHS), given the national focus on ICE over the past month, and how such coupling might impact SBA funding.
As that focus has intensified over the past two weeks and given that FSGG and DHS are part of a single package of six funding bills, it is unclear how the Senate will proceed. Many Senate Democrats have stated that they will oppose any funding for DHS in its current form. If any changes are made or if the entire DHS bill is removed from the package so that the remaining bills may pass the Senate, it would trigger the need for the House to pass the amended package once again.
With the January 30 deadline just three days away, many are speculating that this timeline will be impossible to meet, especially if the House is required to pass an amended funding measure. NAGGL is watching closely to see how Senate Majority Leader Thune will approach the passage of these bills in the coming 24–48 hours before further speculation. As always, lenders should remain aware of the full scope of the dynamics at play in Washington, D.C., and the risks that exist around any funding deadline.
NAGGL is monitoring the situation and will continue to provide updates as important news develops.
