The federal government shuts down if Congress fails to pass a budget for the new fiscal year. The 12 appropriations bills that make up the federal discretionary budget must be enacted by the end of each fiscal year (September 30). If Congress does not pass these bills, agencies must stop all non-essential functions until funding legislation is passed and signed into law. Essential services like public safety and national parks remain operational, as do some mandatory programs. The four “true” shutdowns in the past — 1995-1996, 2013 and 2018-19 — all centered around disputes over funding levels for specific programs.
During a shutdown, some employees are furloughed and do not receive pay until appropriations are restored. Others deemed essential to the safety of life or protection of property continue to work without pay until appropriations are restored. Congress has traditionally reimbursed furloughed employees upon passage of a continuing resolution.
A long-term shutdown can cause real harm. For example, during the 2018-19 shutdown, NIH clinical trials were delayed and patients who needed treatment at medical centers across the country were turned away. In addition, a Goldman Sachs study estimates that every week of a government shutdown reduces economic growth by about 0.2%.
A government shutdown can be ended only by passing a new funding bill that the President can sign into law. This is one of Congress’s core responsibilities and shouldn’t be used as leverage for other political goals. To prevent future shutdowns, Congress should return to a process that allows for the timely approval of individual spending bills rather than relying on short-term “continuing resolutions” or massive last-minute omnibus bills.
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