HAMPTON ROADS, Va. (WAVY) - The U.S. Government is headed for a shutdown – House Republicans and Senate Democrats have just hours to reach a compromise on the continuing resolution to fund the government.
Monday, the Senate rejected the House’s interim spending plan 54-46 that would have derailed Obamacare. Now the ball is back in the House’s court.
WAVY.com has been looking into the ways a government shutdown would affect those in Hampton Roads, and there are two main areas of concern: payment for Department of Defense workers and those involved with government-backed loans.
In the even of a shutdown, almost half of the DoD’s civilian workforce would be furloughed while all active-duty personnel continue to work, but not get paid right away. Their pay would accrue and they would eventually be paid when the government reopens.
However, the Senate approved a bill Monday -- HR 3210, which is being called the "Pay Our Military Act" -- that would exempt active-duty military from pay delays during a government shutdown, including reservists on full-time active duty and the DoD civilian workers specifically selected by Defense Secretary Chuck Hagel. The House approved the bill over the weekend, but the legislation is pending until it is signed by President Obama, who said Monday he will approve the bill.
WAVY.com spoke to Craig Quigley, Executive Director of the Hampton Roads Military & Federal Facilities Alliance, who said he's heard from several concerned and frustrated members of the military.
If the shutdown continues for months, Quigley said he would have to dip into savings or investments or try to get loans, because creditors won't wait and bills have to be paid.
"There has to be a solution, if it goes beyond just a couple of weeks, to put some money in working families’ pockets who are affected by the lack of funding for the government," Quigley said.
The first military payday that would be affected by the shutdown would be on Oct. 15.
During a shutdown, anyone seeking government-backed loans or mortgages would have to wait. If you're in the market to buy a house and your loan isn't already in-process, there could be a delay, at the very least. You could even have to search for an alternative, like a conventional loan, if you qualify.
Pat Steele, President of the Hampton Roads Realtors Association, said Federal Housing Administration and VA loans hang in the balance right now.
"If the loan is not in process, there could be a delay, and if it stayed shut down for a long period of time, we could have a backlog,” Steele said.
If your closing is already set, it already has a federal ID number, a loan number that’s approved.
"I spoke to lenders [Monday] that have FHA loans closing Friday and they [are going to close]. VA loans are scheduled to close [Tuesday] and right now they are [also closing]," Steele said.
For a further breakdown of the affects of a government shutdown, click here.
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