US Federal Government Shutdown Explained

The US federal government’s fiscal year runs from October 1 to September 30 of the following year. For the government to function, a funding legislation (budget) outlining spending limits for all federal agencies must be:

1. Passed by both houses of Congress (House of Representatives and Senate), and
2. Signed by the President.

This legislation enables the government to meet its expenses for the fiscal year.

Continuing Resolution (CR)

If a full-year funding bill is not passed, Congress may approve a continuing resolution (CR), a short-term funding measure that:

• Typically lasts weeks to months, and
• Maintains spending at previous year’s levels.

To avoid a shutdown, a funding bill or CR must be approved before September 30 or before the expiry of the previous CR.

Voting Requirements

• House of Representatives: Simple majority suffices.
• Senate: Requires a three-fifths majority (at least 60 votes).
  • If a party lacks 60 votes, it must negotiate with the other party, often leading to amendments and compromises.

What Happens During a Shutdown

If a funding bill is not passed in time, the federal government shuts down, causing:

1. Furlough of Non-Essential Employees:

• Non-essential federal employees are placed on temporary unpaid leave, called a furlough.
• Voluntary work without pay is illegal, so non-essential services stop.
• Retroactive pay is typically provided once the shutdown ends.

2. Halt of Non-Essential Services:

• Museums, public parks, national monuments
• IRS taxpayer services
• Federal grants and loans processing
• Non-emergency federal research
• Agencies like NIH and CDC may suspend or delay research and public health activities

3. Essential Services Continue:

• Essential government functions (e.g., military, law enforcement) continue to operate, often without pay until the funding bill is passed.