A government shutdown occurs primarily because Congress fails to pass the necessary funding legislation to finance the federal government for the next fiscal year or a temporary funding measure. This failure leads to a funding gap that forces the government to curtail operations, furlough many workers, and close non-essential services until funding is approved. Shutdowns often happen due to partisan disagreements over budget levels or controversial provisions attached to appropriation bills. Key reasons for a government shutdown include:
- Partisan conflicts over spending levels or policy conditions within the budget bills.
- Failure to agree on or pass the required 12 annual appropriation bills before the fiscal year begins.
- Disputes over specific funding priorities, such as in the past where border security funding or healthcare provisions have been major sticking points.
During a shutdown, essential services related to safety and security continue, but many government functions stop, causing widespread impact on employees, contractors, and public services. Shutdowns can harm the economy by reducing government services, slowing down economic growth, and causing financial hardships for federal workers and businesses reliant on government contracts.