A government shutdown occurs when Congress has not enacted full-year funding bills for all departments and agencies before the start of the new fiscal year on October 1. Federal agencies are authorized to operate only with annual appropriations passed by Congress, specified in 12 appropriation bills. Until the 1980s, departments would continue to work during budget gaps by relying on the Antideficiency Act’s prohibition on spending money not appropriated. Today, all departments and agencies preparing for a possible shutdown must submit contingency plans to the Office of Management and Budget. These plans typically advise staff to prioritize activities related to public safety and the protection of property.
During a shutdown, non-essential discretionary functions stop. The exception is Social Security checks, Medicare payments, and the FDA’s food inspections—programs funded by mandatory spending. During the 2018-2019 shutdown, the FDA restored most food inspections after about five weeks into the shutdown, because of the public’s need for safe and healthy foods.
A shutdown forces thousands of federal employees to work without pay and delays the processing of benefits, including tax refunds. It also limits federal hiring and could discourage younger workers from entering the workforce. Shutdowns tarnish America’s global reputation among our allies and adversaries, and undermine our capacity to deal with complex and difficult issues like funding and budget matters. Congress should focus on bipartisan solutions that put the United States on a sustainable fiscal path. That’s why we need to avoid unnecessary, costly, and destructive political brinkmanship.