When Will the Government Shut Down?
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Updated on Sept. 26.
With the drama of funding the 2023-2024 fiscal year in the not-too-distant past, Congress must act to approve appropriations for the 2024-2025 fiscal year.
On Sept. 25, Congress passed a short-term spending bill that extends funding for the government until Dec. 20.
Before the new Dec. 20 deadline, Congress must either pass crucial budget appropriations or agree on yet another funding extension.
Shutdowns are disruptive for the federal government at large. For consumers, a government shutdown could result in various problems and inconveniences. But unless you work for the federal government, a government shutdown might not have an immediate impact on you.
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What happened during the last threat of a shutdown?
On March 23, the Senate finally approved a $1.2 trillion spending bill for the 2023-2024 fiscal year, which funded roughly 70% to 80% of the government. Had the Senate failed to approve the package, the lapse would have put nonessential federal workers on furlough without pay during the shut down, but otherwise caused minimal impact to government services. Since September 2023, Congress had to rely repeatedly on last-minute maneuvering to avoid a shutdown.
What is a government shutdown?
When the government shuts down, many federal agencies must suspend all non-essential services. Each federal agency must develop its own contingency plan for shutdowns, which includes employee furloughs and service reductions.
When will the government shut down?
The government is expected to partially shut down as early as Oct. 1. Congress must act to prevent a shutdown either with a spending bill or continuing resolution.
Who is affected by a government shutdown?
The brunt of the disruption would fall on furloughed government workers. But all federal workers go without pay during a shutdown even if they’re not furloughed. Federal workers are paid retroactively once funding is restored.
Non-essential services that would be suspended likely include national parks, the Internal Revenue Service’s customer service and Federal Student Aid assistance, although you can still apply for aid.
Any programs that receive mandatory funding will continue operations. That includes essential services, such as air traffic control, law enforcement, power grid maintenance, in-hospital medical care and border protection, according to the Center for a Responsible Federal Budget.
If you have travel plans, a shutdown could get in your way.
It could hamper your homebuying plans if you are trying to get a reverse mortgage or Title I loan insured by the Federal Housing Administration or a loan from the U.S. Department of Agriculture.
Some essential services will continue, but service may be reduced including:
Social Security, Medicare and Medicaid. Checks will continue, but benefit verifications may be suspended.
Supplemental Nutrition Assistance Program funding is mandatory, but benefits may stop altogether after 30 days of a shutdown.
Food and environmental inspections through the Food and Drug Administration and the Environmental Protection Agency would likely be halted or reduced.
The Centers for Disease Control and Prevention as well as the National Institutes of Health could also see reduced operations.
When was the last government shutdown?
There have been 21 government shutdowns since 1976. The most recent government shutdown was also the longest yet, beginning on Dec. 22, 2018 and lasting until Jan. 25, 2019 — a total of 34 full days. However, most past shutdowns lasted less than a week.
Government shutdowns are costly in more ways than one: The 2018 to 2019 partial shutdown cost $18 billion in federal discretionary spending and reduced Gross Domestic Product (GDP) by $11 billion, according to the Congressional Budget Office.
When Congress passes some but not all of the required appropriations, the result is a partial shutdown.
(Photo by Anna Moneymaker/Getty Images News via Getty Images)
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