A government shutdown occurs when Congress fails to pass the 12 annual appropriations bills that fund federal agencies and programs or to agree on a fiscal year plan before a short-term, stop gap continuing resolution (CR) expires. During a shutdown, the anti-deficit law prevents most federal spending from taking effect until new funding is approved by Congress. Essential operations such as law enforcement, border protection, in-hospital medical care, and air traffic control continue. Programs funded by permanent user fees and other revenue streams, such as Social Security benefits, also keep operating.
The partisan fight that has emerged around funding the government has created a high risk of a shutdown. A shutdown would disrupt important public services, including halting food safety inspections, closing museums and federal lands, and creating long lines at airport security and in D.C. passport offices. Many federal employees would go without pay, and if the shutdown continues past three months, families of federal contractors may be left in financial limbo.
While active-duty military and Transportation Security Administration workers are required to work during a shutdown, non-essential federal employees are furloughed until normal funding resumes. Historically, these workers have been guaranteed back pay once the shutdown ends. However, even a relatively short shutdown can delay important federal services such as responding to employment-related visa inquiries and customer service for student loan borrowers. Also, if a shutdown persists, it could impact federal contractors by increasing the cost of doing business with the federal government.
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