Shutdown's Collateral Damage - Military Paychecks; Home Loans

Apr 6, 2011

Maybe the Obama Administration is trying to scare Americans into pressuring House Republicans reach a budget deal for the rest of the year by outlining the potential affects of a government shutdown.

If that's the case, they've picked some truly effective examples.

One that leaps out immediately. Members of the U.S. armed services would not receive paychecks.

Servicemembers would still be credited for the pay due which they would receive in future checks. But they wouldn't be paid during the time of the shutdown.

Of all the federal workers who wouldn't get paid during a shutdown, the image of service members risking their lives in Iraq and Afghanistan while their families back home run out of money to pay basic bills, is probably one of the most disturbing ones the administration could offer up.

A post by NPR's Liz Halloran on our news blog, The Two-Way, outlines how a shutdown would affect federal workers — about 800,000 of whom would be furloughed — and services — the Federal Housing Administration wouldn't be able to guarantee new home loans, obviously the last thing the moribund housing industry needs. Copyright 2011 National Public Radio. To see more, visit