A US government shutdown means that the federal government stops all non- essential functions because Congress has failed to pass funding bills necessary to finance government operations. This results in a freeze of many government activities, furloughing of non-essential employees who cannot work or get paid, and a shutdown of agencies dependent on annual appropriations until a budget deal is reached.
What Happens During a Shutdown
- Essential services related to national security, public safety, and critical infrastructure continue to operate, including FBI, CIA, military, air traffic control, border security, and the national grid.
- Social Security, Medicare, and veterans' healthcare continue since they are funded by mandatory spending.
- Non-essential services like national parks, federal museums, and various administrative functions close.
- Many federal workers are furloughed without pay, though some essential employees continue working without immediate pay, which is often reimbursed after the shutdown ends.
Causes of a Shutdown
- Shutdowns occur when Congress cannot agree on appropriations bills or a temporary funding resolution for the new fiscal year beginning October 1.
- Political disagreements, often over healthcare funding and other budget priorities, are common reasons for deadlocks.
Effects of a Shutdown
- Affects hundreds of thousands of federal employees through furloughs or delayed pay.
- Causes disruption in various government services, travel delays, and the closure of public venues.
- Economic impacts include slowed government revenue and measurable reductions in GDP growth during extended shutdowns.
The recent 2025 shutdown followed a failure to pass funding legislation amid partisan conflicts, leading to a halt of all non-essential government operations starting October 1, 2025.
