US Government Shutdown Nears: Why Is October 1 Deadline Critical? Here's What It Means For US Workers, Visa Holders

(MENAFN- Live Mint) US government shutdown: The long-looming threat could turn into a reality within some hours if Donald Trump and the Democrats fail to strike a deal before Tuesday midnight, October 1.

October 1 isn't just another date on the calendar-it is a significant date for the US because it marks the start of the federal government's fiscal year. The entire US federal government's budget for every year begins on October 1st and runs until September 30. This date is the annual deadline for Congress to pass the necessary funding to keep the government running.

The date also holds importance for the nation's immigration system, with new fiscal year allocations for US visas – making the October visa bulletin significant – as it is the first bulletin of the fiscal year which reflects the new annual visa supply.

Track all US government shutdown LIVE Updates here

This year, however, Trump and the Democrats are still at loggerheads – where both parties have been unable to finalise a deal yet – leading to fears of a potential government shutdown in the US.

What happens in a US govt shutdown?

When funding lapses, federal law mandates that agencies stop non-essential operations and place“non-excepted” employees on furlough. Excepted employees includes those who perform work to protect life and property. They stay on the job and continue to work, but do not get their pay until after the shutdown has ended.

During the 35-day partial government shutdown in Trump's first term, out of 800,000 federal employees affected, 340,000 were furloughed while the rest, classified as“excepted", were required to keep working, as per AP.

'Brief' shutdown ahead?

Amid the chaos, Republican lawmakers remained confident that Democrats would ultimately relent. Donald Trump, on Tuesday, stated the US will 'probably have a shutdown' , which will be 15th since 1981.

Earlier, Senator Lindsey Graham, a Republican from South Carolina, had anticipated only a“brief” shutdown as both parties work toward a compromise.

He pointed out that Republicans have previously attempted to use shutdowns to extract policy concessions, but ultimately ended up funding the government without achieving their goals.

White House orders agencies to plan mass firings if US government shutdown hits

Meanwhile, Trump, in a conversation with Politico, said that he didn't think the country would hold him responsible if the government shuts down“because people that are smart see what's happening. The Democrats are deranged.”

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