The Government Shutdown's Effects on the Maritime Industry

The Government Shutdown's Effects on the Maritime Industry
Winston & Strawn 2019-01-23

[By Charlie Papavisas, Allen Black and Bryant E. Gardner]

On December 22, 2018, a continuing resolution passed by Congress to fund a portion of the U.S. Government into the 2019 fiscal year expired and was not renewed, resulting in a partial federal government shutdown. The shutdown is having significant regulatory impacts which will become more severe and then debilitating over time.

The partial closure of certain agencies has a negative effect on many industries, including the maritime industry, which is growing over time. In addition to the fact that agencies can no longer contract for services until the shutdown is over, agencies also cannot, in many instances, accept regulatory filings, issue regulatory permissions and approvals, or provide regulatory advice. If the shutdown lasts long enough, the effects could be severe, including the cancellation or postponement of projects, such as offshore wind projects, because of the resulting uncertainty.

The following is a summary of the status of three primary maritime agencies affected by the shutdown.

U.S. Coast Guard

The Coast Guard reports that of its 53,000 employees, 43,000 are considered excepted (including all uniform personnel) and are working without pay, and about 10,000 Coast Guard employees are furloughed and prohibited from working. The Coast Guard’s 41,000 active duty uniformed personnel have the dubious distinction of being the only U.S. uniformed military service members who are not being paid while they serve their country.

The Coast Guard indicates that it is still continuing operations authorized by law that provide for national security or that protect life and property, such as search and rescue, port and homeland safety and security, law enforcement, and environmental response activities. However, the Coast Guard has been forced to limit or suspend mission activities that do not fall within those categories.

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