Government shutdown: What it means for you
- Federal employees. In the event of a shutdown, the federal government does not actually stop functioning entirely: activities and employees deemed "excepted" (in 1995, the terminology used was "essential") to ...
- Government services. ...
- The Military. ...
What really happens during a government shutdown?
- Commerce: 41,600 out of 47,900 total employees will be put on furlough
- Defense (only applies to civilian workforce): 370,000 out of 740,000 total employees will be put on furlough
- Education: 3,700 out of 3,900 total employees will be put on furlough
- Environmental Protection Agency: 13,700 out of 14,400 total employees will be put on furlough
What causes a government shutdown?
A government shutdown will happen if Congress cannot agree on a resolution, indicating a complete breakdown in the budget process. Consequences of a Government Shutdown. Since most federal departments get their funds from the discretionary budget, services that are deemed non-essential close until lawmakers reach an agreement on the budget ...
What happens during a government shutdown?
In a shutdown, the federal government temporarily stops paying employees and contractors who perform government services, whereas in a default the list of parties not paid is much broader. In a default, the government exceeds the statutory debt limit and is unable to pay some of its creditors (or other obligations).
Why does a government shutdown happen?
A government shutdown occurs when there is a failure to pass the necessary funding legislation that will finance the government for its next fiscal year. During a government shutdown, nonessential government offices are unable to remain open; some essential workers must continue to work but their pay may be furloughed.
What Is a Government Shutdown?
A government shutdown happens when nonessential U.S. government offices can no longer remain open due to a lack of funding. The lack of funding usually occurs when there is a delay in the approval of the federal budget that will finance the government for the upcoming fiscal year. The shutdown remains in effect until funding legislation is passed.
What happens during a shutdown?
During a government shutdown, nonessential government offices are unable to remain open; some essential workers must continue to work but their pay may be furloughed. Veterans' benefits and unemployment payments continue to be paid. Long government shutdowns impact the entire American economy.
How long did the shutdown last?
However, the overall cost and lasting impact of a government shutdown on the economy may vary. For example, the government shutdown of 2013, which lasted for 16 days, was estimated to have cost the U.S. economy $24 billion in losses. 1 . Furloughed federal employees may individually curtail their spending.
How does the shutdown affect the economy?
As government operations slow or stop altogether, the effects may also spread to businesses in the private sector. It's possible that the entire economy may lose money as a result of this disruption in government operations. However, the overall cost and lasting impact of a government shutdown on the economy may vary. For example, the government shutdown of 2013, which lasted for 16 days, was estimated to have cost the U.S. economy $24 billion in losses. 1
What are the impacts of the shutdown?
This includes the delay or halting of the United States Department of Agriculture's inspection of some food products 1 and the preclusion of the Consumer Product Safety Commission (CPSC) from recalling unsafe products 2, and travelers may be unable to receive new passports (which are issued by the U.S. Department of State) 3. In addition, the Centers for Disease Control and Prevention ( CDC) may be unable to identify and track outbreaks of illness 4 .
How many federal employees were affected by the shutdown?
President Trump and members of Congress were unable to agree on funding for the fiscal year 2019. This government shutdown impacted approximately 800,000 federal employees.
How many federal employees are on furlough?
In a fact sheet released by Senator Patrick Leahy, the Democratic vice chair of the Senate Appropriations Committee, it was revealed that more than 420,000 federal employees were expected to work without pay, and more than 380,000 federal employees would be placed on furlough.
What is shutdown in government?
What is a shutdown? A government shutdown is when Congress doesn’t approve a federal budget for the upcoming fiscal year and nonessential functions of the U.S. government close until lawmakers can agree on a budget.
When has the government shut down before?
There have been 12 shutdowns since 1981, Bloomberg reports, lasting from one day to 21 days. The last shutdown was in 2013 and lasted 16 days.
What happens when the government shuts down?
When the government shuts down, that doesn’t mean that all federal operations cease — just the ones deemed nonessential. Nonessential federal workers are furloughed, which means they are sent home and docked pay. (They can later be paid retroactively for this time off.) These jobs can include such things as working at national parks or monuments, processing passport and visa applications and maintaining government websites. During the last shutdown, 850,000 executive-branch employees were furloughed.
Is the military still in the shutdown?
The military is considered essential so it would largely continue to function, though Congress would have to reapprove a bill from 2013 to have members of the military continue to receive paychecks during the shutdown.
Will the government continue to work during the shutdown?
But many of the government’s primary duties will continue to be performed, although the workers may not be paid for it. Trump, for example, tweeted that a shutdown will be “devastating to our military,” but that’s not true. The military is considered essential so it would largely continue to function, though Congress would have to reapprove a bill from 2013 to have members of the military continue to receive paychecks during the shutdown.
What is shutdown in government?
Government shutdowns, in United States politics, refer to a funding gap period that causes a full or partial shutdown of federal government operations and agencies. They are caused when there is a failure to pass a funding legislation to finance the government for its next fiscal year or a temporary funding measure.
Why does the government shut down?
Government shutdowns occur when the government refuses passage of key bills, resulting in the cessation of some or all operations by the government. Government shutdowns in the United States have occurred periodically since 1980, and are the result of failure to pass appropriations bills before the previous ones expire.
Why was the government shutdown impossible?
Until the passage of the Fixed-Term Parliaments Act in 2011, government shutdowns in the United Kingdom were impossible due to parliamentary convention. A government which could not command a majority in Parliament would be dismissed, either prior to the seating of Parliament when the Queen's Speech was voted down or later, when a vote of no confidence was tabled and passed, when a Finance Act was voted down, or when a major bill was voted down.
How long has the US been shut down?
history have included the 21-day shutdown of 1995–1996 during the Bill Clinton administration over opposition to major spending cuts; the 16-day shutdown in 2013 during the Barack Obama administration caused by a dispute over implementation of the Patient Protection and Affordable Care Act; and the 35-day shutdown of 2018-2019 during the Donald Trump administration, the longest shutdown in US history, caused by a dispute over the funding amount for an expansion of the U.S.–Mexico border barrier.
What are the effects of government shutdowns?
Shutdowns cause the disruption of government services and programs, including the closure of national parks and institutions (in particular, due to shortages of federal employees). A major loss of government revenue comes from lost labor from furloughed employees who are still paid, as well as loss of fees that would have been paid during the shutdown. Shutdowns also cause a significant reduction in economic growth (depending on the length of the shutdown). During the 2013 shutdown, Standard & Poor's, the financial ratings agency, stated on 16 October that the shutdown had "to date taken $24 billion out of the economy", and "shaved at least 0.6 percent off annualized fourth-quarter 2013 GDP growth".
What happens when the government refuses to pass a key bill?
Government shutdowns occur when the government refuses passage of key bills, resulting in the cessation of some or all operations by the government.
What is the shutdown in the context of Brexit?
An American-style shutdown was also considered to be on the table in the context of Brexit, as some MP's proposed an amendment to "starve the government of cash" and create a "Donald Trump-style shutdown" in the event of a no-deal Brexit.
Examples of Government Shutdown in a sentence
For discussion, see prepared statement of Walter Dellinger, Assistant Attorney General, in U.S. Congress, Senate Committee on the Budget and House Committee on the Budget, Effects of Potential Government Shutdown, hearing, 104th Cong., 1st sess., September 19, 1995, S.Hrg.
More Definitions of Government Shutdown
Government Shutdown means any shutdown resulting from the lack of Congressional budget appropriations ( related or similar to the shutdown that began on December 22, 2018), prior to the End Date, of certain United States federal government services provided by the U.S. Federal Trade Commission and U.S.
What does it mean to shut down the government?
Shutting the government down also means closing government offices that are in charge of verifying incomes and Social Security numbers. So if you’re trying to get approval for a Federal Housing Administration (FHA) loan or a Department of Veterans Affairs (VA) loan, you’ll probably have to wait a lot longer.
What government businesses are closed during the shutdown?
Meanwhile, government businesses considered nonessential —like the Department of Agriculture and National Park Service—close their doors during a government shutdown. And that means hundreds of thousands of federal workers are furloughed. 3
How many federal employees were furloughed?
When the government shut down in 2013 and early 2018, about 850,000 federal employees were furloughed. 4 Those employees weren’t allowed to work and didn’t get their regular paychecks. And during the longest-lasting partial shutdown (35 days) in 2018–2019, about 380,000 employees were furloughed, while 420,000 continued to work without pay. 5 Think about it . . . that’s a whole month without a paycheck. Yikes! But thanks to a bill passed in 2019, furloughed employees are now guaranteed back pay after shutdowns end. 6
How many shutdowns have happened since 1980?
Like most things that have to do with politics, there’s a lot more talk about a government shutdown happening than it actually happening. There have been about 10 close calls since 1980, but only four true shutdowns that lasted longer than one business day. 1 Now, when the government does shut down for a longer period of time, you might feel an impact. But unless you rely on a federal paycheck, it’s probably going to be more of a minor inconvenience than a life-altering event.
Why do farmers lose money during a shutdown?
Even though they’re not federal employees, many American farmers could lose out on income during a government shutdown because the U.S. Department of Agriculture falls in the unessential category. That means the offices and services that help American farmers get payments and funding close their doors. 7
Does the government shutdown happen often?
While government shutdowns may not happen often, it’s still something you’ll want to prepare for if you rely on a federally funded income (more on that later).
Can a shutdown cause travel pains?
Okay, this may not be the most important issue, but a government shutdown can cause major travel pains.
What Is A Government Shutdown?
Understanding A Government Shutdown
- During a government shutdown, the U.S. federal government is required to reduce agency activities and services and cease any non-essential operations (including furloughing non-essential workers). Some agencies remain open during a government shutdown. These services are those that, if suspended, would endanger the health, life, or personal safety of the public. Ess…
Impact on The Economy
- As government operations slow or stop altogether, the effects may also spread to businesses in the private sector. It's possible that the entire economy may lose money as a result of this disruption in government operations. However, the overall cost and lasting impact of a government shutdown on the economy may vary. For example, the government shutdown of 20…
Special Considerations
- The funding of the U.S. government's budget is a long and complicated process that involves the coordination and cooperation of many stakeholders, including the president, the House of Representatives, the Senate, and the federal agencies and departments that will receive the funding. Many events may delay the budget's approval, including economic downturns, political …
Real World Example
- At midnight on Dec. 21, 2018, the United States entered a government shutdown. President Trump and members of Congress were unable to agree on funding for the fiscal year 2019. This government shutdown impacted approximately 800,000 federal employees. In a fact sheet released by Senator Patrick Leahy, the Democratic vice chair of the Senate Appropriations Com…
What Is A Shutdown?
What Happens When The Government Shuts Down?
- When the government shuts down, that doesn’t mean that all federal operations cease — just the ones deemed nonessential. Nonessential federal workers are furloughed, which means they are sent home and docked pay. (They can later be paid retroactively for this time off.) These jobs can include such things as working at national parks or monuments, processing passport and visa a…
When Has The Government Shut Down before?
- There have been 12 shutdowns since 1981, Bloomberg reports, lasting from one day to 21 days. The last shutdown was in 2013 and lasted 16 days.
Will The Government Shut Down This time?
- Possibly. The House passed a short-term spending bill Thursday night, so now it’s up to the Senate. The Senate could vote on the bill the House passed, and if it passes again the shutdown would be averted. Right now, a key sticking point between Republicans and Democrats is whether to pass another continuing resolution for a short-term fix or come to a more difficult but longer-l…