What financial assistance is available to federal workers impacted by shutdown? – NBC 7 San Diego

Report on the U.S. Government Shutdown and its Implications for Sustainable Development Goals

Institutional Instability in Conflict with SDG 16

A shutdown of the U.S. government, now in its eighth day, represents a significant challenge to the principles of Sustainable Development Goal 16: Peace, Justice and Strong Institutions. The inability of lawmakers to pass a funding agreement underscores a failure in institutional effectiveness.

• The U.S. Senate has failed six times to pass a funding agreement.
• This legislative deadlock compromises the stability and reliability of national institutions, a key target of SDG 16.

Economic Disruption and Setbacks for SDG 1 and SDG 8

The financial repercussions for federal workers directly impact progress toward SDG 1: No Poverty and SDG 8: Decent Work and Economic Growth. The mandate for essential employees to work without pay contravenes the core concept of decent work.

• A large number of U.S. military and civilian federal employees are currently working without receiving paychecks, increasing the risk of financial hardship and poverty.
• This scenario undermines the objective of achieving full, productive, and decent work for all citizens as stipulated by SDG 8.

Mitigation Efforts and Support for SDG 10

In response to the shutdown, financial companies are providing assistance programs. These actions align with the objectives of SDG 10: Reduced Inequalities by offering a financial buffer to those immediately impacted by the lapse in government funding.

• USAA: The financial services company has implemented several relief options.
  1. Payment assistance for banking and insurance products for eligible members.
  2. A loan offer equivalent to one net paycheck, valued up to $6,000.
• Navy Federal Credit Union: The credit union is offering direct financial support.
  1. A 0% APR loan is available to eligible members affected by the pay disruption.

Financial Guidance for Affected Individuals

Financial advisors are providing strategies to help federal employees maintain financial stability, a crucial element for individual well-being and household economic security.

• Cody North, founder of North Financial Advisors, has offered the following recommendations:
  1. Immediately review and suspend recurring, non-essential expenses.
  2. For those in severe need, consider a loan from the Thrift Savings Plan (TSP), a retirement program that remains operational during a shutdown.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 1: No Poverty

   • The article highlights the immediate financial distress faced by federal employees who are not receiving their paychecks. This situation can push households, especially those with limited savings, towards temporary poverty or an inability to meet basic needs, directly connecting to the goal of eradicating poverty in all its forms.

2. SDG 8: Decent Work and Economic Growth

   • The core issue discussed is a disruption of “decent work.” The article states that “essential workers required to work but… won’t get a paycheck until the government reopens.” This violates the fundamental principle of fair and timely remuneration for labor. The shutdown itself represents a significant disruption to economic activity and the stability of employment for a large workforce.

3. SDG 16: Peace, Justice and Strong Institutions

   • The government shutdown is a direct result of a failure of political institutions. The article notes, “The U.S. government has been shut down for eight days, a result of lawmakers not reaching and passing a funding agreement,” and that the “U.S. Senate failed to pass an agreement for the sixth time.” This points to a breakdown in the effectiveness and accountability of governmental institutions, which is the central theme of SDG 16.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Targets under SDG 1 (No Poverty)

   • Target 1.2: “By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions.” The lack of paychecks puts federal employees at risk of falling below the national poverty line, making this target highly relevant. The financial advice to “start taking a look at any kind of recurring expenses and try to stop those” illustrates the immediate threat of income poverty.
   • Target 1.4: “By 2030, ensure that all men and women… have… access to… financial services…” The article emphasizes the role of financial services in mitigating the crisis. Companies like USAA and Navy Federal Credit Union offering “payment and a number of relief options” and “0% APR loans” are providing critical access to financial resources for a vulnerable population.

2. Targets under SDG 8 (Decent Work and Economic Growth)

   • Target 8.5: “By 2030, achieve full and productive employment and decent work for all…” The situation where employees work without pay is a clear failure to provide “decent work.” The article describes employees “caught in the middle of the shutdown,” unable to receive their earned income, which undermines this target.
   • Target 8.10: “Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all.” The article showcases financial institutions like USAA and Navy Federal Credit Union actively stepping in to provide support, demonstrating their capacity to offer relief during economic shocks. USAA offers a loan “equal to the net value of one paycheck, up to $6,000,” directly addressing the income gap.

3. Targets under SDG 16 (Peace, Justice and Strong Institutions)

   • Target 16.6: “Develop effective, accountable and transparent institutions at all levels.” The government shutdown is a clear manifestation of an ineffective institution. The article’s statement that lawmakers failed to pass a funding agreement for the “sixth time” directly points to a failure in the legislative process and institutional effectiveness.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicators for SDG 1 & 8

   • Number of people requiring financial assistance: The article implies this indicator by mentioning that during previous shutdowns, “nearly 20,000 members received support” from Navy Federal Credit Union. This is a quantifiable measure of the number of people experiencing financial vulnerability.
   • Value and type of financial assistance offered: The article specifies the support being offered, which can be measured. Examples include “0% APR loans” from Navy Federal and loans “up to $6,000” from USAA. These details serve as indicators of the scale of the economic support needed and provided.
   • Proportion of workers affected: The article refers to “Many U.S. military and civilian federal employees,” indicating a large, measurable group whose income and work conditions are compromised.

2. Indicators for SDG 16

   • Duration of institutional failure: The article explicitly states the government “has been shut down for eight days.” This duration is a direct indicator of the extent of the institutional breakdown.
   • Frequency of legislative deadlock: The mention that the “U.S. Senate failed to pass an agreement for the sixth time” serves as an indicator of the inability of the institution to function effectively and reach consensus.

4. Summary Table of SDGs, Targets, and Indicators

Source: nbcsandiego.com