Carolina Public Press–As the federal government crept into its third week of shutdown Wednesday, deadlines for when some essential services that affect North Carolina residents will run out of funding are quickly nearing or have already passed.
Food and nutrition programs. Federal court operations. Disaster relief funds. All of these will be put on hold if the shutdown remains in place, to the detriment of many North Carolinians.
The political stalemate began on Oct. 1 after Democrats and Republicans in Congress failed to come to an agreement over a spending bill that was necessary to keep the government running. Democrats stood firm on wanting to extend tax credits for Affordable Care Act (a.k.a. “Obamacare”) health insurance policies that were set to expire this year. Republicans want to nix the subsidies that keep health care affordable for many Americans but cost the government billions of dollars each year.
So far, nine votes to reopen the government have failed as both sides dug in their heels.
The battle in Washington, D.C., has real consequences for North Carolinians, state leaders have warned, the most pressing of which include social-safety-net programs that may soon go broke without new appropriations.
Counties administer many of these services through their Department of Social Services offices. So far, information from the federal government has been “minimal,” Sharnese Ransome, Executive Director of the North Carolina Association of County Directors of Social Services, told Carolina Public Press.
“Counties are very concerned about the impact the federal government shutdown will have on the residents of the state,” Ransome said.
The Supplemental Nutrition Assistance Program (SNAP), known generally as food stamps, could be the first of the human services to be affected. The U.S. Department of Agriculture, which funds the federal program, told states in a letter last week that SNAP has enough money to last through October.
However, those funds will not be enough to fully fund November benefits, and the Department directed states to delay sending next month’s issuance information to their vendors in charge of distributing SNAP benefits.
“We are working to get a better understanding of exactly what that disruption will mean for North Carolina,” said Summer Tonizzo, a spokesperson for the N.C. Department of Health and Human Services.
More than 700,000 households in North Carolina receive SNAP benefits each month, and a majority of participating families have either a child, senior or an adult with a disability, according to DHHS. About 582,000 children in North Carolina rely on SNAP for nutritious food.
Chatham County DSS director Jennie Kristiansen said she’s “particularly concerned” about SNAP, which serves about 5,000 people in the county.
“Chatham County, like many other counties in N.C., is heavily reliant on federal funds to serve residents, so we are paying close attention to the federal shutdown” she said.
A separate supplemental nutrition program for women, infants and children (WIC) has not yet been funded but remains operational, DHHS said. About 262,000 North Carolinians receive benefits from WIC.
Right now, state and county health officials are playing the waiting game as they seek more information from the federal government.
“Our leadership team is reassessing the situation daily,” DHHS spokesperson Hannah Jones said.
Some Helene recovery funds are on pauseThe federal government has exempted programs fueled by its Disaster Relief Fund from the effects of the shutdown, meaning most FEMA-run programs should continue to operate. That includes the federal home repair and buyout program and public assistance for local governments.
However, programs housed within other federal agencies such as the Department of Housing and Urban Development (HUD) and the Department of Agriculture (USDA) have been affected, according to a letter penned by Gov. Josh Stein to federal budget director Russell Vought.
Farmers in Western North Carolina haven’t been able to access federal reimbursements for the nearly $5 billion in crop losses and other agricultural impacts as a result of Tropical Storm Helene.
Meanwhile, the state’s home repair and rebuilding program, which is funded by a $1.4 billion grant from HUD, has been delayed by its inability to draw down federal money.
FEMA also hasn’t been issuing new flood insurance policies or renewing expired policies since the shutdown began. That could become a serious problem in the event of a major storm.
“The people of North Carolina cannot afford any more delays or setbacks, especially as we face the rest of this year’s hurricane season,” Stein wrote.
Stein requested that the Office of Management and Budget, which provides guidance on which federal programs are considered essential, also exempt those recovery programs which aren’t paid for through the Disaster Relief Fund.
So far, there’s been no response to the request.
“Support from the federal government is critical to Helene recovery,” Matt Calabria, director of the Governor’s Recovery Office for Western North Carolina, told CPP in an email.
“We can’t run short on resources, especially on the eve of the winter season.”
US courts running out of cash during shutdown
Federal courts will continue paid operations through Friday, Oct. 17, according to the Administrative Office of the U.S. Courts.
If the Judiciary runs out of money while the shutdown is still in place, courts will have to reduce their operations to only essential functions. That could mean furloughing staff and delaying legal proceedings.
The three U.S. District Courts in North Carolina are headquartered in Raleigh, Greensboro and Charlotte, respectively, with additional federal courthouses in cities across the state.
The majority of criminal and civil legal cases are dealt with at the state level, and state courts continue to operate without the shutdown directly encumbering them.
Medicaid faces cuts, but not because of shutdown
NC Medicaid, which is the state-administered health care plan for low-income individuals, has cut provider rates this month, leading to some diminished services, but DHHS said that’s not a result of the federal shutdown.
Instead, the problem is a result of gridlock in the state legislature, which has failed to adequately fund the health plan for the fiscal year beginning Oct. 1.
“NC Medicaid is not currently impacted by the federal shutdown,” DHHS spokesperson Hannah Jones told CPP.
What services won’t be affected?
Mandatory government programs that don’t rely on annual federal appropriations to continue running include Social Security, Medicare and Medicaid.
However, the respective agencies which run those programs furloughed large chunks of their staff, so actions like replacing Social Security cards or talking to an insurance representative over the phone could take more time than normal.
Similarly, air traffic controllers and TSA agents are reporting to work but in fewer numbers, potentially leading to flight delays at airports.
The U.S. Post Office will continue business as usual during the shutdown, as well as federal law enforcement agencies.
The Division of Motor Vehicles, being a state-run agency, will also operate as normal.
