Large swaths of the US government could temporarily close on October 1 if Congress does not approve spending bills due to a dispute between far-right Republicans and other lawmakers. Here’s what the US government shutdowns means:
What government shutdown means
Congress must allocate funding to 438 government agencies every fiscal year, which ends on September 30. If lawmakers don’t pass those bills before the new fiscal year starts, those agencies will be unable to continue operating as normal. Lawmakers often temporarily push that deadline back by extending agencies’ current funding levels in a “continuing resolution” so they can continue negotiating.
20 shutdowns since 1970s
There have been 20 shutdowns since the 1970s, according to the Congressional Research Service and fourth in the last decade. The last one was in December 2018. It was the longest, lasting 35 days between December 2018 and January 2019.
What is the impact
Federal employees considered essential continue to work without pay. After the shutdown ends, those employees receive retroactive pay for the length of the shutdown. Other federal employees, however, are furloughed (sent on temporary leave) until Congress passes a spending package.
Functions considered essential
Essential services include employees such as air traffic controllers and border patrol, as well as services such as Social Security and Medicare benefits. Every department and agency has a contingency plan to determine which employees must keep working without pay. The 2018-2019 shutdown furloughed roughly 800,000 of the federal government’s 2.2 million employees.
Air travel would remain relatively unimpeded, but in previous shutdowns the Transportation Security Administration has warned that airport-security screeners could call in sick at an increased rate. All military personnel would remain working, but roughly 429,000 civilian Pentagon employees would be sent on temporary leave.
Economic impact of US shutdown
Shutdowns that last only a few days would have little practical impact, particularly if they occur over a weekend, but the broader economy would suffer if federal employees begin missing paychecks after two weeks. The 2018-2019 shutdown reportedly cost the economy about $3 billion, equal to 0.02% of GDP according to the Congressional Budget Office.
The potential US government shutdown could also reportedly add to worries about the economy going into year-end and beyond.
(with agency inputs)
What government shutdown means
Congress must allocate funding to 438 government agencies every fiscal year, which ends on September 30. If lawmakers don’t pass those bills before the new fiscal year starts, those agencies will be unable to continue operating as normal. Lawmakers often temporarily push that deadline back by extending agencies’ current funding levels in a “continuing resolution” so they can continue negotiating.
20 shutdowns since 1970s
There have been 20 shutdowns since the 1970s, according to the Congressional Research Service and fourth in the last decade. The last one was in December 2018. It was the longest, lasting 35 days between December 2018 and January 2019.
What is the impact
Federal employees considered essential continue to work without pay. After the shutdown ends, those employees receive retroactive pay for the length of the shutdown. Other federal employees, however, are furloughed (sent on temporary leave) until Congress passes a spending package.
Functions considered essential
Essential services include employees such as air traffic controllers and border patrol, as well as services such as Social Security and Medicare benefits. Every department and agency has a contingency plan to determine which employees must keep working without pay. The 2018-2019 shutdown furloughed roughly 800,000 of the federal government’s 2.2 million employees.
Air travel would remain relatively unimpeded, but in previous shutdowns the Transportation Security Administration has warned that airport-security screeners could call in sick at an increased rate. All military personnel would remain working, but roughly 429,000 civilian Pentagon employees would be sent on temporary leave.
Economic impact of US shutdown
Shutdowns that last only a few days would have little practical impact, particularly if they occur over a weekend, but the broader economy would suffer if federal employees begin missing paychecks after two weeks. The 2018-2019 shutdown reportedly cost the economy about $3 billion, equal to 0.02% of GDP according to the Congressional Budget Office.
The potential US government shutdown could also reportedly add to worries about the economy going into year-end and beyond.
(with agency inputs)
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