Unveiling the Truth: What Happens During a Government Shutdown?
A government shutdown occurs when nonessential U.S. government offices can no longer remain open due to a lack of funding. The funding lapse usually happens when there’s a delay in approving the federal budget necessary to finance the government for the upcoming fiscal year. The shutdown persists until the necessary funding legislation is passed by Congress.
During this period, many federally run operations cease. Although some organizations try to remain operational by running on their reserved funds, they eventually shut down once these funds are depleted. While similar shutdowns can happen at state, territorial, and local government levels, the term generally refers to the federal government in the U.S.
Key Takeaways
- A government shutdown is triggered by the failure to pass funding legislation.
- Nonessential government offices shut down, though some essential workers might continue without pay.
- Payments like veterans’ benefits and unemployment continue.
- Long-term shutdowns ripple through the entire American economy.
The Disruption: What Happens?
A federal government shutdown forces the reduction or cessation of non-essential governmental activities. Agencies covering crucial services remain functioning—those services avoid suspension to protect public health, safety, or property.
Essential employees of agencies such as the Drug Enforcement Agency (DEA), Transportation Security Administration (TSA), Customs and Border Protection (CBP), and the Federal Bureau of Investigation (FBI) maintain their duties. However, these individuals may not receive paychecks until new funding is released through specific legislation. Agencies like the Federal Reserve and Postal Service also continue their operations since they don’t rely on federal funds.
Payments for veterans’ benefits and unemployment insurance persist since they stem from specially allocated budget streams. Furloughed employees are also usually eligible to apply for temporary unemployment, yet the processing of these claims may encounter delays.
Government shutdowns disrupt numerous services, notably affecting the public’s daily expectations. Prominently, national parks and monuments typically close during significant shutdown instances. Important yet invisible delays and uncertanties impact broader sectors regarding loan processing, benefits administration, and consoles nationals’ economic tapes taprange worldwide.
Advantages include: car capitalization for organizations like USDA’s food inspection and CDC’s tracking health services; Reassuring travel confidently counters services.
Economic Impact: The Cascading Consequences
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Related Terms: federal budget, furlough, appropriations, revenue, private sector, Consumer Product Safety Commission, cash reserves.
References
- Congressional Research Service. “Shutdown of the Federal Government: Causes, Processes, and Effects”. Summary Page.
- Congressional Research Service. “Shutdown of the Federal Government: Causes, Processes, and Effects”. Pages 13-15, 24-25.
- Board of Governors of the Federal Reserve System. “What Does it Mean that the Federal Reserve is Independent Within the Government?”
- U.S. Postal Service. “Top Facts You Should Know About the U.S. Postal Service”.
- U.S. Department of Veterans Affairs. “VA Contingency Planning”.
- U.S. Office of Personnel Management. “Information for Federal Agencies, Unemployment Compensation for Federal Employees (UCFE)”.
- Joni Ernst, U.S. Senator, Iowa. “Senators Introduce Bipartisan Bill to Ensure Servicemember Death Benefits Are Paid During Government Shutdowns”.
- U.S. Department of Agriculture. “USDA Updates Available Functions During Lapse in Funding”.
- The National Law Review. “Four Things You Should Know to Navigate the CPSC Shutdown”.
- Congressman David G. Valadao, Representing California’s 22nd Congressional District. “Government Shutdown FAQ”.
- NPR. “Government Shutdowns and the CDC”.
- U.S. Government Accountability Office. “2013 Government Shutdown: Three Departments Reported Varying Degrees of Impacts on Operations, Grants, and Contracts”.
- U.S. Senate, Joint Economic Committee. “The Unnecessary Costs of a Government Shutdown”. Page 1.
- U.S. Senate, Committee on Appropriations. “Projected Impacts of a Trump Shutdown”.
- Congressional Research Service. “Past Government Shutdowns: Key Resources”. Summary Page.
