“D.C. Government Will Stay Open if Federal Government Shuts Down Friday”

From the office of Congresswoman Eleanor Holmes Norton:

“With the possibility of a federal government shutdown on Friday, Congresswoman Eleanor Holmes Norton (D-DC) today reminded District of Columbia residents that a provision she got included in the enacted fiscal year (FY) 2022 D.C. Appropriations bill exempts the D.C. government from a federal government shutdown in FY 2023. Norton has gotten the D.C. government exempted from federal government shutdowns each year since FY 2015.

“Until my annual provision was enacted, shutdown threats forced the District to invest time and money preparing contingency shutdown plans, even if shutdowns were avoided,” Norton said. “If the District government shut down, not only could D.C. services be disrupted, D.C. could default on certain financing agreements and leases. D.C. partners, Wall Street and vendors alike charge a risk premium for the uncertainty created by shutdown threats. Wall Street took special note of the elimination of the D.C. shutdown threat in evaluating the District’s finances.”

Congress has not yet passed any of the regular FY 2023 appropriations bills, including the D.C. Appropriations bill, which appropriates D.C.’s locally raised funds, notwithstanding the Local Budget Autonomy Act. If Congress does not pass a continuing resolution by Friday, the federal government will shut down. However, the D.C. government will not shut down because Norton got a provision included in the FY 2022 D.C. Appropriations bill that allows D.C. to remain open and spend under the D.C. Council-passed FY 2023 local budget for the duration of a federal government shutdown in FY 2023. Before Norton first got the shutdown exemption, the District government had to prepare shutdown contingency plans every time there was a threat of a federal government shutdown. Shutdown threats harmed the credit rating of the District government. Credit rating agencies have favorably cited Norton’s shutdown exemption provision. With D.C. statehood, Congress would have no say or control over D.C.’s local budget.”