TheCorporateCounsel.net

For some reason, I can’t get that song “The Final Countdown” from Europe out of my head this morning, as the clock ticks down to the end of the federal government’s fiscal year. As has happened so many times in the past, it is still possible that we could see Congress reach an eleventh-hour deal to kick the can down the road, but that outcome appears to be increasingly unlikely.

As this Washington Post article notes, the U.S. government notified federal workers yesterday that a government shutdown appears to be imminent. If there is a lapse in appropriations, approximately 2.1 million federal workers and 1.3 million active duty troops will stop receiving their paychecks. As we know from the Corp Fin guidance that I blogged about yesterday, there would be inevitable disruptions in capital markets transactions (including the recently reawakened IPO market) and other matters that the SEC staff is involved with if the SEC has to furlough its employees as a result of a government shutdown, and similar disruptions in government services will play out across Washington and beyond.

As we gird ourselves for what could potentially be a long shutdown, I try to recall some of the brighter spots from the almost month-long government shutdown in 2018-2019. As we noted in the blog back then:

But if you live in Washington DC, the government shutdown is big news as many of your friends & neighbors are nervously sitting at home. Or maybe they have run out to one of Jose Andres’ restaurants, as the famous chef is handing out free food if you can flash a government ID. Some DC bars are offering speciality cocktails, such as as “Nothing Really Mattis” (Mad Dog 20/20 and Vodka) and “Mexico Will Pay for This” (Montezuma Blue tequila, orange juice and grenadine).

As we go into this weekend, all we can do now is hope for the best and prepare for the worst.

– Dave Lynn