Government shutdowns in the United States

Understanding Government Shutdowns: A Primer

Imagine a giant machine that powers our nation coming to a screeching halt—what would happen? That’s essentially what happens during a government shutdown.

The Basics of Federal Funding and Shutdowns

A government shutdown occurs when the federal funding legislation isn’t passed before the fiscal year begins. It’s like trying to start your car without gas; everything comes to a standstill. This can lead to curtailed agency activities, service disruptions, furloughs of non-essential workers, and retention of essential employees.

History and Notable Shutdowns

The first funding gap in the United States began in 1980, with a shutdown occurring every time since then if it lasts longer than a few hours. Some notable ones include the 21-day shutdown from 1995 to 1996, the 16-day shutdown of 2013, and the 35-day shutdown in 2018-2019. These events disrupt government services, programs, and economic growth, reducing revenue due to lost fees and back pay for furloughed employees.

The Appropriate Process: Controlled by Congress

The appropriation process is controlled by Congress. They propose an appropriation bill that must be signed into law by the President. If this doesn’t happen, it’s like trying to drive a car without any fuel; everything stops working until you get more gas.

Effects of Shutdowns: Macro and Micro

A full federal government shutdown causes a large number of civilian employees to be furloughed, with effects visible in macroeconomic data. During the 2013 shutdown, 800,000 employees were locked out, payment was delayed to 1.3 million workers, and GDP growth slowed by 0.1-0.2%. The loss of GDP is a bigger sum than it would have cost to keep the government open.

Emergency Personnel and Essential Services

Not all services are affected during a shutdown. Emergency personnel, including active duty military, federal law enforcement agents, and doctors working in federal hospitals, continue to be employed. Members of Congress remain paid, mail delivery is not affected, and some offices rely on operating reserves to stay open.

The Department of Defense and Beyond

The Department of Defense’s civilian workforce is furloughed, with the full-time, dual-status military technicians in the US National Guard and traditional Guardsmen also affected. Programs funded by laws other than annual appropriations acts may be impacted if execution relies on activities that receive annually appropriated funding.

The Constitutional Implications

Some argue that shutdowns protect popular sovereignty and force officials to follow the nation’s will, while others see them as a form of brinksmanship used by elected officials to coerce opponents. The S. Constitution’s separation of powers is considered a fundamental flaw in this context.

A Timeline of Notable Shutdowns

Here’s a quick look at some key shutdowns:

• 1980: FTC shutdown due to budget dispute, affecting 1,600 workers
• 1981: Shutdown lasting one day, affecting 241,000 employees
• 1984 and 1986: Shutdowns lasting one afternoon, affecting 500,000 employees each time
• Economists estimated $62 million lost work during the U.S. government shutdown of 1990
• The shutdown lasted from October 6-9, 1990, with 2,800 workers furloughed and national parks/museums closed
• 1995-1996: Two shutdowns due to disagreements over spending cuts and tax increases, affecting 284,000 workers in total
• 2013: Shutdown focused on delaying funding for the Affordable Care Act, lasting 16 days
• January 2018: Shutdown centered around immigration policy disagreements between Democrats and Republicans
• December 2018-January 2019: Shutdown due to disagreement over funding for Trump’s border wall, lasting several weeks. The shutdown resulted in sharp reductions on payments from the Supplemental Nutrition Assistance Program, delays in processing $140 billion worth of tax refunds, FBI investigation disruptions, TSA staff shortages, and reduced economic growth
• The 35-day shutdown, the longest in US history after surpassing the 21-day shutdown of 1995–1996, led to 380,000 federal workers being furloughed and an additional 420,000 workers working without payment dates
• The deadlock ended on January 25, 2019, when both chambers of Congress approved a plan to reopen the US government for 3 weeks. A significant number of absences by air traffic controllers caused flight delays and cancellations, contributing to the shutdown’s end
• The shutdown cost the government $5 billion in lost pay, tax revenues, and fees

Government shutdowns are a complex issue that affects not just federal employees but also the broader economy. They highlight the challenges of balancing fiscal responsibility with essential services and the importance of effective legislative processes.