Anticipating a Possible Federal Shutdown
As you know, the U.S. government may shut down later today if Congress is unable to reach an agreement on continuing funding. If that happens, most U.S. government services that are not deemed "essential" will stop. Essential is a flexible term, but generally has meant functions directly related to national defense, emergency response or safety, although there are exceptions. This situation could affect a wide range of activities, including the scheduling of pending litigation before federal courts, administrative proceedings, or the processing by federal agencies or departments of applications, licenses, trademarks or similar matters. It is likely that an assessment of the impact will need to be made on a case-by-case basis.
The last federal government shutdown was in FY 2014. "When federal agencies and programs lack funding after the expiration of full-year or interim appropriations, the agencies and programs experience a funding gap. If funding does not resume in time to continue government operations, then, under the Antideficiency Act, an agency must cease operations, except in certain situations when law authorizes continued activity. The criteria that flow from the Antideficiency Act for determining which activities are affected are complex."[1]
After the 2014 shutdown, the Office of Management and Budget issued a report outlining its impact and costs. These costs included macroeconomic effects on the economy as a whole, as well as "economic disruption" due to cessation of "government activities the private sector relies on." Examples include a "halt to several kinds of permitting, reviews, and licensing (e.g., 200 applications for a permit to drill for energy resources); suspension of Internal Revenue Service (IRS) income verification used by financial institutions to help determine creditworthiness of prospective borrowers; a halt to hundreds of federal loans to small businesses; and disrupted tourism and travel by closing national parks." Other effects included stoppage of work on federal contracts. During the 2014 shutdown, the federal judiciary continued working, using other funds, and even if they had been exhausted may have been able to continue functions. However, "some civil cases were postponed, in part due to continuance requests from the Department of Justice" and many "courts also operated on condensed criminal calendars and reduced building maintenance."[2]
If you are concerned about legal issues that could be affected, please do not hesitate to contact us.
[1] See, "Shutdown of the Federal Government: Causes, Processes, and Effects, Congressional Research Service," RL34680, November 30, 2017
[2] Id.
Recommended
The purpose of this monthly series Patently Enabled is to share simplified patent-related information to assist non-patent practitioners in making the best decisions when considering their intellectual property rights.
Day Pitney Managing Partner Gregory Hayes and former Chief Justices of the Connecticut Supreme Court Chase Rogers and Richard Robinson were featured in the Hartford Business Journal cover story, "In Rare Feat, Law Firm Day Pitney Lands Two Former CT Supreme Court Chief Justices." The feature article highlights both Rogers and Robinson's choice to join Day Pitney upon their retirement from the bench.
Day Pitney Technology Counsel Laura Land Himelstein's arrival to the firm was featured in the Law360 article, "In-House Tech Atty Returns to Private Practice at Day Pitney." She has joined Day Pitney in both the technology, telecommunications and outsourcing and the data privacy, protection and litigation practice groups, based in the firm's New York and Stamford offices.
Day Pitney Press Release
Boston Partner Heidi Seely has accepted membership to be included in the 2025 American College of Trust and Estate Counsel (ACTEC) Fellows class, she is one of thirty-two individuals across the country to be offered membership at this level.
Day Pitney Trusts and Estates Partner Tasha Dickinson was featured in the Kiplinger article titled, "How to Navigate Finances as a Blended Family."
Katharine A. Coffey, a Real Estate Partner, has a new leadership post after being tapped as vice chair of the firm's corporate and business law department.