A federal government closure in the United States can have far-reaching implications for the country’s economy, national parks, and essential services. The impact of a shutdown is multifaceted, affecting not only federal employees but also millions of Americans who rely on these services.
What is a US Government Shutdown?
A government shutdown occurs when the government fails to agree on its annual budget, either in whole or in part. This impacts discretionary spending, which must be appropriated each year.
During a full shutdown, all non-essential US government agencies and programs close since they depend on annual government funding. However, essential services and mandatory spending programs continue uninterrupted.
Who is Affected by a Government Shutdown?
Federal employees are the first to feel the impact of a government shutdown. Full shutdowns in 2013 and early 2018 meant that around 850,000 out of 2.1 million non-postal federal employees were temporarily furloughed. Furloughed employees do not receive their paychecks during this time but are guaranteed retroactive back pay when the government is funded.
Employees working in essential services must keep working but often go without pay. Federal officials who have been confirmed by the Senate cannot be furloughed, and the President and members of Congress continue to work and be paid.
What Happens During a Government Shutdown?
A number of agencies or programs are not considered essential and stop operation either in part or full during a government shutdown. These include national parks, national monuments, the Library of Congress, and museums like the Smithsonian.
The Environmental Protection Agency, Food and Drug Administration, Federal Trade Commission, and the Securities and Exchange Commission are among the departments affected. Depending on how long things stay closed, huge backlogs of work can pile up while millions of dollars are lost in revenue.
How Long Do Government Shutdowns Last?
Government shutdowns have occurred multiple times under Presidents Clinton, Obama, and Trump. The longest one was under Trump in 2018-2019 and lasted for 35 days. Most economic impacts of government shutdowns are temporary, but a prolonged shutdown can cause bigger problems.
