Congressional budgets expire and, on occasion, when Congress is unable to approve a new one before that happens, some of the government shuts down. That’s bad for taxpayers, who aren’t getting tax refunds or loan applications processed; federal employees who go without pay (although those deemed “essential” work during shutdowns continue to be paid when the appropriations bills that fund them become available); and the people whose lives and businesses depend on federal services like food safety inspections, air traffic control, and museums and national parks.
It’s also bad for the economy. The last three shutdowns cost the country about $11 billion, and the Congressional Budget Office estimates that each additional day of a shutdown reduces GDP by 0.1%.
Unfortunately, the risk of a shutdown is real and grows more likely as both parties dig in on their funding fights. A shutdown would mean a halt to the processing of passports and small business loans, closure of museums and national parks, delayed flights to and from LaGuardia Airport, and other inconveniences that affect Americans. Moreover, it gives President Trump and his budget director, Russell Vought, substantial leeway to determine which government services can be kept up during a shutdown and which must be sidelined — decisions that could be used as bargaining chips in the political battle. The OMB website posts detailed plans that departments and agencies must develop in the event of a shutdown. These plans detail which functions must cease, which services can continue, and which employees must stay on the job but not receive payment until appropriations are passed.