The federal government shutdown that’s now approaching its fourth week is hurting Vermont individuals and its businesses, said advocates who gathered at the Statehouse on Thursday.
Among them are Vermont breweries that are caught in permitting problems because the regulatory offices they have been working with are closed, said Avery Schwenk, the president of the Vermont Brewers Association and owner of Hermit Thrush Brewery in Brattleboro.
Schwenk said he knows members of the association whose expansion projects have been halted by the shutdown, which began on Dec. 22.
“With the complexity of lining up a location, getting other permits, their funding sources, that’s a tremendous burden on a new or expanding business that probably already has a lot on their plate,” Schwenk said.
Government spending has been curtailed because Congress and President Donald Trump cannot agree on an appropriations bill for the 2019 fiscal year. Trump is demanding that the Democrats approve spending $5.7 billion for a border wall between the U.S. and Mexico; the Democrats refuse.
In the short term, Vermont’s federal food assistance program, known as SNAP, and other welfare programs will be funded by the state. Vermont House Speaker Mitzi Johnson, D-South Hero, said Thursday the state has reserves to support the federal programs through March.
“We’re in much better position than a number of states that frankly haven’t done as good a job of putting money aside in reserves to weather the ups and downs,” Johnson said. Federal money is still coming in for two of the largest federal programs, Medicaid and transportation, she said.
There are 686 federal workers in Vermont who are going without pay during the shutdown, and more than 1,500 who work for agencies that don’t have federal money appropriated to pay for them, according to the Legislature’s Joint Fiscal Office.
On Thursday, Johnson and Senate President Pro Tem Tim Ashe called together some local leaders to talk about the impact of the shutdown, and how the state can help.
“Thousands of people across the state who work for the federal government, and recipients of government benefit programs, count on services and are in a limbo state which we would not tolerate here,” said Ashe, D/P-Chittenden.
Vermont banks are willing to be flexible with people who are affected, said Chris D’Elia, president of the Vermont Bankers Association.
“If you are a federal employee who is experiencing economic challenges or is about to, don’t put your head in the sand,” D’Elia said. “Engage your bank. We are taking these issues on a case-by-case basis.”
For example, D’Elia said, for a worker whose checking account is overdrawn, a bank might consider waiving all of the fees and providing short-term loans or overdraft protection.
Jean Giard, president of Vermont Federal Credit Union, said credit unions would do the same. Local credit unions are deferring payments on loans and taking other steps to work with members who are struggling as a result of the shutdown, she said.
“Credit unions are owned by their members and it’s up to us to provide assistance when our members are under crisis situations,” Giard said. “Many of our business members are being impacted with a lack of funds as a result of this crisis.”
Schwenk said he knew of members whose new label releases had been held up by the shutdown. One, Harpoon Brewery in Windsor, has nine new labels in limbo awaiting approval, he said.
“We have new beer sitting in our tanks tying up space,” he said. “This is a big problem for us in our industry because our reputation rests on quality and the freshness of our product.”
Also because of the shutdown, the city of South Burlington on Thursday announced it would waive late fees and suspend water shut-offs for furloughed federal workers. Employees must provide a copy of their furlough letter, said South Burlington City Manager Kevin Dorn.
