Convergence of Shutdown, Childcare Cliff, and Student Loans Deals a Blow to the Poor

Convergence of Shutdown, Childcare Cliff, and Student Loans Deals a Blow to the Poor

WASHINGTON, ⁣Sept 29 – ⁢Lower‌ income households and Black and Latino communities will be hit hard when a confluence ‌of U.S. economic events kick ⁤off next week, including a sharp drop in childcare funding, economists, analysts and ⁤government officials said.
About 12.4%, some 41 million,‍ of the U.S.’s 333 million people live‍ at or below the poverty ​line,‌ the Census Bureau calculates, which ‌is set at about $29,678⁣ for a ⁤household ‍of two adults and two chidren.
That rate fell ⁤to a record low in 2021 thanks to COVID-19 federal support, but ⁢has jumped as these programs expired.

SHUTDOWN IMPACTS
Hardline Republicans in the House have rejected a deal the Republican-led⁢ House negotiated with U.S. President Joe⁤ Biden in May for $1.59 trillion in discretionary spending in fiscal⁣ 2024, paving the way for wide swaths of the ⁣government to shut down for the fourth time in a decade.
Everything from economic data releases to food benefits may be suspended beginning⁢ on⁢ Sunday, and ​some 2.2. million government workers may be furloughed or ⁢forced to work ⁣without pay.
The average member of the‌ American Federation‍ of Government Employees earns between ​$55,000 and $65,000 a year, but thousands of hourly⁢ workers​ earn​ much less,⁢ about⁤ $31,200 a year. These workers will all get back pay⁢ after the ‍furlough or shutdown is over, but contract workers, who earn​ even ​less, are not eligible for the back pay.

FOOD⁢ BENEFITS FROM⁤ WIC,⁢ SNAP
A shutdown could cause a rapid loss of food benefits for nearly 7 million low-income women and children on the Special Supplemental⁢ Nutrition Program for Women, Infacts and Children, or WIC,‍ U.S. ⁣officials said Tuesday.
The $5.7 billion annual program provides​ food assistance and ‌health care referrals to low-income‍ pregnant, postpartum and breastfeeding woman and children up to⁤ age 5 — benefits that could dry up ⁤in⁢ days.
A separate benefits program, Supplemental Nutrition Assistance Program (SNAP), will‌ continue as normal for ‌the month ​of October but could be affected afterward, officials say.
More than 40 ‌million Americans relied on SNAP to make ends meet in 2022; inflation has put new pressure on household budgets, with prices higher since the COVID-19 pandemic for goods ⁤from bread to fresh vegetables and baby formula.

BLACK COMMUNITIES
Biden said⁢ this week that⁤ the shutdown would hit Black Americans disproportionately hard, including by​ reducing nutritional benefits, cutting inspections of ⁣hazardous waste sites ​and lack of enforcement of fair housing laws.
About 13% of Americans identify as Black, but Black participation in SNAP is about double that rate; in WIC it is ⁤22.3%, USDA data show.
U.S. officals say⁤ Small Business Administration‌ loans may be‍ delayed and up ‌to 10,000 children could lose access ‍to ​Head Start, ⁢the federal program for preschool children from low-income families. Latino children account ‌for ‍37% of ⁢current Head⁣ Start​ enrollment, with 27% identifying⁤ as Black and 24% as white.
Meanwhile, more than 1,400 community health ⁣centers serving

Original from www.reuters.com

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