The United States government is on the brink of another shutdown, a scenario that has become an all-too-familiar occurrence in recent decades. If lawmakers fail to approve a spending bill before the deadline, the federal government will cease all non-essential operations, leaving hundreds of thousands of workers furloughed and disrupting services that millions of Americans rely on.
With the deadline fast approaching, many are left wondering what exactly a government shutdown entails and what its implications will be.
What is a Government Shutdown?
In simple terms, a US government shutdown happens when Congress fails to pass a funding bill for federal operations by the set deadline. The government operates on a fiscal year that begins on October 1. Before this date, Congress is supposed to approve appropriations bills to fund federal agencies and their operations. However, if disagreements arise and these bills are not approved in time, the government faces a funding lapse, triggering a shutdown.
The concept of a government shutdown is rooted in the Antideficiency Act of 1884. This law prohibits federal agencies from operating without an approved budget, barring activities deemed “essential.” These essential services include national security, air traffic control, and law enforcement. However, non-essential services, such as processing passport applications, national parks, and certain administrative tasks, are suspended until funding is restored.
Since 1977, there have been 21 incidences of government shutdowns, making this a recurring challenge for the United States. While some shutdowns last for a single day, others, like the 2018-2019 shutdown, have extended for weeks, causing significant disruption.
Why Does a Government Shutdown Happen?
The root cause of a government shutdown lies in the political and structural setup of the US federal system. Congress, composed of the House of Representatives and the Senate, holds the responsibility of passing funding bills. These bills are often subject to intense negotiations, as different political parties have varying priorities and agendas.
In many cases, disagreements over policy issues, such as healthcare, immigration, or defence spending, lead to a deadlock. Lawmakers may use the threat of a shutdown as leverage to push their agendas, turning funding bills into bargaining tools. This creates a situation where essential operations of the government are held hostage to political disputes.
This year, the temporary funding measure that was keeping the government operational is set to expire on December 20. Both the Republican-controlled House of Representatives and the Democrat-majority Senate must agree on a new funding bill to avoid a shutdown. Disputes over spending cuts and additional provisions have, however, created a stalemate, increasing the likelihood of a shutdown.
What Happens During a Government Shutdown?
If Congress fails to reach an agreement, the government will enter a shutdown starting December 21. The immediate impact will be felt by federal employees and the general public relying on government services. Here is what a shutdown would look like:
Approximately 875,000 federal employees will be furloughed, meaning they will be sent home without pay until the government resumes operations. Essential workers, such as military personnel, air traffic controllers, and law enforcement officers, will continue working but without pay. Historically, employees have received back pay once the shutdown ends, but this does little to alleviate the financial strain during the shutdown period.
Disruption of Services
Key government services deemed non-essential will be suspended. Passport and visa processing will face delays, affecting international travel plans. National parks, museums, and monuments will close their doors to visitors. Services like the issuance of Social Security cards and certain health research projects will be delayed.
Environmental and food safety inspections, which are vital for public health, will also be reduced or suspended. Small farmers seeking new loans could face significant delays, disrupting their operations. The Transportation Security Administration (TSA) may struggle with staffing shortages, leading to longer wait times at airports during the busy holiday season.
Impact on the Economy
While some may assume that a government shutdown saves money, the opposite is often true. Preparing for a shutdown and resuming operations afterward incurs significant costs. Moreover, user fees and charges are not collected during a shutdown, further reducing federal revenue. The Congressional Budget Office (CBO) estimated that the 2018-2019 shutdown cost the economy $11 billion, including $3 billion that was permanently lost.
Shutdowns also create uncertainty, causing disruptions in the private sector. Federal contractors often include risk premiums in their bids to account for payment delays, increasing overall project costs. Additionally, consumer confidence may dip, impacting spending and economic growth.
Can a Shutdown Be Avoided?
Despite the grim outlook, a shutdown is not inevitable. Lawmakers could still negotiate and pass a funding bill before the deadline. However, the narrow margins in both chambers of Congress make bipartisan agreement essential, which is challenging given the current political climate.
JD VANCE: “They would rather shut down the government and fight for global censorship bullsh*t. They’ve asked for a shutdown and I think that’s exactly what they’re going to get.”pic.twitter.com/50KPfo1e5w
— Chief Nerd (@TheChiefNerd) December 20, 2024
House Speaker Mike Johnson has proposed extending funding until March, including provisions for farmers’ aid and hurricane relief. However, disagreements within the Republican Party and opposition from Democrats have hindered progress. The White House has also criticized certain provisions in the proposed bill, further complicating the situation.
Donald Trump and the Republican Party are now led by Elon Musk. But we can stop him, and we proved that today by stopping a government shutdown. Let’s keep fighting like hell for working people. pic.twitter.com/pElOTp1a2c
— Congressman Robert Garcia (@RepRobertGarcia) December 21, 2024
Looking back, the longest government shutdown in US history lasted for 34 days from December 2018 to January 2019. During that time, national parks remained open, but trash piled up due to the absence of maintenance staff. Transportation Security Administration (TSA) employees called in sick, leading to significant delays at airports.
🚨 BREAKING NEWS
Donald Trump has scored a massive legislative victory as the House has passed a government funding bill. This was originally a 1500-page bill slimmed down to 120 pages that still funds disaster relief and avoids a shutdown.
How do you feel about this win? pic.twitter.com/fRk6PDCZ0a
— 𝐓𝐡𝐞 𝐀𝐫𝐭 𝐨𝐟 𝐏𝐮𝐫𝐩𝐨𝐬𝐞 🇺🇸 (@creation247) December 21, 2024
While most shutdowns have lasted only a few days, the disruption they cause highlights the inefficiencies of relying on short-term funding measures. They also underscore the need for long-term reforms in the federal budgeting process to avoid repeated crises.
🚨 #BREAKING: The third spending bill has PASSED the House of Representatives, with Democrat support
A government shutdown has been avoided.
This bill was 118 pages. Down from over 1,500 pages.
𝕏 may have cut the pork out of this bill, but now we must get to work cutting the… pic.twitter.com/kwNmjKVmGk
— Nick Sortor (@nicksortor) December 20, 2024
