A government shutdown occurs when Congress fails to pass — and the President does not sign — budget legislation for the fiscal year. Annual funding appropriations are typically divided into 12 bills, and when a bill is not enacted in time to cover the whole year, non-essential departments shut down. During these times, some employees are furloughed, while those deemed “essential” work without pay. For example, during a 2013 shutdown, the Environmental Protection Agency stopped inspections of chemical factories and power plants, and Food and Drug Administration staff delayed routine food safety inspections. However, Social Security and Medicare benefits are guaranteed to continue, as is mail service. During long shutdowns, the FDA has even temporarily resumed some food inspections for high-risk products after a few weeks.
A Federal Shutdown Causes Widespread Disruption
Millions of Americans rely on federal services, from national parks to passport processing to IRS assistance to small business loans. When these services are disrupted, businesses suffer and workers lose paychecks. A prolonged lapse in federal funds also creates uncertainty in financial markets, which dampens investor confidence and may affect economic growth.
At a time when the United States is competing with strategic adversaries for global influence and authority, it’s vital that domestic political turmoil doesn’t damage America’s international reputation by conveying a sense of instability and inability to govern. Unfortunately, drawn-out funding gaps exacerbate these problems and provide fodder for adversaries to exploit the U.S. government and society for their own strategic purposes.