As a partial government shutdown continues into its third week, the impacts of a funding lapse for affected agencies are beginning to become more visible. Among the seven federal spending bills that lapsed in December is the Financial Services and General Government Appropriations bill. While the name indicates that it provides funding for the Department of Treasury, the bill also authorizes appropriations for many other remaining agencies, independent offices and federal courts. Most of these agencies are either closed or are operating in a reduced capacity due to the shutdown.
However, many financial regulatory agencies that operate largely on fees and other sources of revenue, such as the Municipal Securities Rulemaking Board (MSRB) or the United States Postal Service are not impacted by the shutdown. Here are three ways in which the Financial Services and General Government lapse in appropriations may impact cities, towns and villages: