A government shutdown looms and Congress must enact a continuing appropriations act, or Continuing Resolution (CR), by September 30 to prevent a government shutdown that would begin on October 1. At this point, it is unclear if Congress will reach an agreement to avoid a shutdown, or how long a shutdown would last if one happens. Previous federal government shutdowns have lasted from as little as one day to 35 days in 2018.
In the past, government workers would be temporarily furloughed and then reinstated with full back pay. Not this time. According to this article from Politico and other sources, the Office of Management and Budget has instructed federal agencies to prepare plans for mass firings to permanently reduce the government workforce if there is a funding lapse on October 1.
A government shutdown could have major implications for railroad safety and Railroad Retirement beneficiaries.
FRA: In previous government shutdowns, about 35 percent of Federal Railroad Administration staff would be furloughed while remaining personnel would focus primarily on activities necessary to protect life and property. For example, FRA staff that manage rail accident/incident investigations would continue working, as would safety inspectors. FRA would not advance any rulemakings during a government shutdown.
NMB: The National Mediation Board in 2023 published a contingency plan (PDF) in the event of government shutdowns. It reads in part: “It is the policy of the NMB that in the event of a funding hiatus… all NMB staff employed at the time of the funding hiatus will be furloughed, unless individuals have been identified as excepted… to perform mission critical functions.” At this time, it is unclear if those individuals involved in Presidential Emergency Board No. 253 hearings investigating the BLET/Long Island Rail Road contract dispute will be given the “excepted” designation. More details will be provided as soon as they are confirmed. Please click here to read more about the BLET-LIRR dispute.
STB: According to industry publication Railway Age, a shutdown would also impact the Surface Transportation Board. “However, Senate-confirmed agency administrators and Senate-confirmed STB members cannot be furloughed during a government shutdown, as their jobs and compensation are provided by statute. The STB and FRA will retain a skeleton staff to deal with emergencies such as car supply issues, emergency service orders and challenged embargoes.”
RRB: The Railroad Retirement Board (RRB) published a contingency plan for government shutdowns in 2017. All activities related to the Railroad Unemployment Insurance Act (RUIA) would continue without change because these are funded by a permanent appropriation. Activities needed to ensure accurate and timely payment of benefits under the Railroad Retirement Act (RRA), which are not funded through an annual appropriation, would continue. Activities which would continue within limited capacity include: Processing partial-to-final awards; processing spouse-to-widow adjustments; processing one-payment-only awards; processing new supplemental annuity awards; and providing pre-retirement counseling and preparing annuity estimates.