What happens if the government shuts down?

What happens if the government shuts down?

Spread the love

Unless Republicans and Democrats break their negotiations stalemate, the federal government will partially shut down on Oct. 1, furloughing hundreds of thousands of federal employees and halting dozens of services.

A government shutdown occurs if federal agencies run out of money to finance their operations. Under the Antideficiency Act, the government cannot spend money it doesn’t have, so agencies must generally halt their operations until Congress appropriates new money.

Congress is supposed to annually renew agencies’ discretionary spending levels via 12 appropriations bills, but they often run out of time and pass a funding stopgap instead.

House lawmakers have already passed a Continuing Resolution to keep government funding levels on cruise control until November. But Democratic senators prevented the CR from passing the upper chamber and have no plans to relent unless partisan funding concessions are made – concessions Republicans are refusing to grant.

Political betting markets currently peg the chance of a partial government shutdown at above 80%. If that happens, the impacts on everyday Americans will vary widely based on occupation, region, and socioeconomic status.

During a shutdown, federal agencies and operations deemed essential – including national security, law enforcement, Border Patrol, outbreak monitoring, and emergency response – would remain fully open. Despite possible delays, Amtrak rail and airports would still run, the State department would continue processing passports and visas, and the Department of Education would continue administering student aid.

Americans would also continue to receive their mail, Social Security benefits, Medicare, Medicaid, and veterans’ benefits. These services can remain open because the U.S. Postal Service is almost entirely funded by its own revenue and the entitlement programs are funded by mandatory spending, which automatically renews without congressional approval.

But a shutdown would cripple the Food and Drug Administration’s routine food facility safety inspections and the Environmental Protection Agency’s inspections of water systems, chemical facilities, and hazardous waste sites, as well as halt hazardous waste cleanup.

All national parks and museums would close, clinical trials at the National Institutes of Health would see interruptions, and applications for federal housing or small business loans would stall. The supplemental nutrition program WIC would quickly run out of money, and food stamp benefits could be delayed if a shutdown drags on.

Although the Inflation Reduction Act of 2022 provided funds for the Internal Revenue Service to stay open in the event of a shutdown, there is no guarantee this will happen. Under previous shutdowns, the IRS furloughed 90% of its employees, paralyzing operations.

Federal employees in “essential” positions – such as service members and air traffic controllers – would work without pay until the shutdown ends. “Nonessential” government employees – such as Park Rangers and presidents of local EPA offices – would remain furloughed and unpaid until the shutdown ends. At that point, both groups would receive backpay.

The only federal workers who would receive pay throughout a shutdown are those in agencies not funded by Congress, such as USPS workers.

Neither political party would benefit from a government shutdown, which hasn’t occurred in seven years. The most recent lasted from Dec. 22, 2018, to Jan. 25, 2019, the longest shutdown in U.S. history. Republicans were the minority party in the Senate and forced the shutdown, consequently receiving much of the blame. Given that Democrats now occupy that role, a shutdown now would likely harm their party the most.

The stakes are even higher this time around given that the Trump administration is planning to make some of the furloughs permanent if the government shuts down. An Office of Management and Budget memo called on agencies to “use this opportunity” to eliminate agency positions deemed unnecessary.

Leave a Comment





Latest News Stories

Fiscal Fallout: Illinois has among highest-paid state employees

Fiscal Fallout: Illinois has among highest-paid state employees

By Jared Strong | The Center SquareThe Center Square (The Center Square) – The average wages for Illinois state employees are among the highest in the nation and belie the...
Report: State reliance on federal funds up significantly since 1990s

Report: State reliance on federal funds up significantly since 1990s

By Tate MillerThe Center Square States rely on federal dollars more than they have in modern history, according to a new report, with one of the report’s authors saying such...
Southwest low on list of safest states; Northeast at the top

Southwest low on list of safest states; Northeast at the top

By Dave MasonThe Center Square The Northeast corner is the safest part of the U.S., according to a new WalletHub study. The Southwest? Not so much. Issues such as high...
Washington state attorney general agrees to protect seal of confession

Washington state attorney general agrees to protect seal of confession

By Tim ClouserThe Center Square The Washington State Attorney General's Office reported on Friday that it has reached an agreement with the Catholic Church over a new abuse reporting law....
Pacific Northwest journalists sound off on Antifa at President Trump’s roundtable

Pacific Northwest journalists sound off on Antifa at President Trump’s roundtable

By Carleen JohnsonThe Center Square Journalists from the Pacific Northwest took part in President Donald Trump’s Wednesday roundtable discussion on Antifa that included top cabinet officials and other independent members...
Nvidia will pay 100k visa fees, others unsure

Nvidia will pay 100k visa fees, others unsure

By Andrew RiceThe Center Square Nvidia CEO Jensen Huang said his company would pay $100,000 fees for H-1B visas imposed by the Trump administration. On Sept. 19, President Donald Trump...
'Shameful:' GOP leaders frustrated with Dems on tenth day of shutdown

‘Shameful:’ GOP leaders frustrated with Dems on tenth day of shutdown

By Thérèse BoudreauxThe Center Square U.S. senators have left town for the weekend and will not vote again on a federal funding bill until Tuesday, meaning the ongoing government shutdown...
Trump snubbed by Nobel Committee, praised by winner

Trump snubbed by Nobel Committee, praised by winner

By Sarah Roderick-FitchThe Center Square After being credited for ending seven wars, President Donald Trump was snubbed for the Nobel Peace Prize. Trump, who accumulated several high-profile nominations for the...
Screenshot 2025-10-10 at 11.39.44 AM

Will County Committee Approves Preliminary $161.6M Tax Levy on Split Vote Amid Heated Debate Over Spending

Will County Finance Committee Meeting October 7, 2025 Article Summary: The Will County Finance Committee on Tuesday narrowly approved a preliminary $161.6 million property tax levy for 2025, which projects...
Screenshot 2025-10-10 at 11.36.42 AM

Will County Eyes Major Overhaul to Consolidate Scattered Government Offices

Will County Capital Improvements & IT Committee Meeting October 7, 2025 Article Summary: Will County officials are formally debating a new facilities master plan to address aging buildings and dozens...
Trump threatens tariffs on China over 'hostile' rare earths policy

Trump threatens tariffs on China over ‘hostile’ rare earths policy

By Brett RowlandThe Center Square President Donald Trump threatened a "massive increase" in tariffs on products from China after Beijing tightened export controls on rare earth minerals critical to advanced...
Illinois legislator urges school discipline to focus on behavior, not race

Illinois legislator urges school discipline to focus on behavior, not race

By Catrina Barker | The Center Square contributorThe Center Square (The Center Square) – McLean County Unit 5 submits a new discipline plan under state law after racial disparities are...
WATCH: Trump appeals Guard TRO as DHS looks to ‘double down’ law enforcement in Chicago

WATCH: Trump appeals Guard TRO as DHS looks to ‘double down’ law enforcement in Chicago

By Greg Bishop | The Center SquareThe Center Square (The Center Square) – In today's edition of Illinois in Focus Daily, The Center Square Editor Greg Bishop reviews the latest...
Illinois quick hits: Trump appeals judge's Guard order; ICE fence ordered down in Broadview

Illinois quick hits: Trump appeals judge’s Guard order; ICE fence ordered down in Broadview

By Jim Talamonti | The Center SquareThe Center Square Trump appeals judge's Guard order The Trump administration has appealed a federal judge’s temporary restraining order and preliminary injunction blocking the...
Trump administration appeals Illinois TRO blocking National Guard deployment

Trump administration appeals Illinois TRO blocking National Guard deployment

By Jim Talamonti | The Center SquareThe Center Square (The Center Square) – The Trump administration is appealing a federal judge’s temporary restraining order and preliminary injunction blocking the administration’s...