The possibility of a government shutdown looms, and if it happens, it will have significant consequences for federal employees and the American public as a whole. Government shutdowns occur when Congress fails to pass a spending deal or continuing resolution, resulting in the government running out of money.[0] This leads to the suspension of non-essential services and the potential furlough of federal workers.
One of the most immediate impacts of a government shutdown is the financial strain it places on federal employees. During a shutdown, federal workers are expected to continue working without pay until the shutdown is lifted. This affects hundreds of thousands of employees who rely on their paychecks to support themselves and their families. However, there is some relief in the form of backpay. Legislation passed in 2019 guarantees that federal employees will receive their full pay once the shutdown is over. This provides some reassurance to those who are affected by the shutdown.
In addition to the financial burden, a government shutdown also disrupts essential services and puts a strain on resources. While essential services, such as air traffic control and border security, continue to operate, the lack of funding hampers their ability to function efficiently. This can lead to delays and challenges in providing necessary services to the public. Furthermore, the ripple effect of a shutdown extends beyond federal employees. Contractors who work with the government also face uncertainty and potential job loss during a shutdown. Unlike full-time federal workers, contractors often do not receive backpay once the shutdown ends.[1]
The impact of a government shutdown goes beyond the immediate financial and operational consequences. It also affects various aspects of daily life, including air travel, public health, and the economy.[2] The U.S. travel industry, for example, could lose up to $140 million per day during a shutdown, as people cancel or avoid trips.[3] This not only affects the travel industry but also has broader economic implications. The longer a shutdown lasts, the greater the economic impact, as seen in the 34-day shutdown in 2018-2019, which cost the nation's economy $11 billion.[4]
The threat of a government shutdown is a recurring issue in the United States. Since 1976, there have been 20 gaps in federal funding.[5] The current situation is no exception, with infighting among House Republicans driving the government towards a potential shutdown.[6] Congress has until the end of the fiscal year on September 30 to pass a spending deal or continuing resolution to avoid a shutdown.[7] However, with little progress being made and time running out, a shutdown seems increasingly likely.[8]
As the deadline approaches, federal agencies are preparing contingency plans to determine which services are essential and will continue during a shutdown.[0] Essential services include air traffic control, border security, and the military, among others. However, non-essential services will be paused, and an estimated 850,000 federal workers could be furloughed. The impact of a shutdown on government operations is difficult to predict, as each agency has its own plan in place.[5]
The potential for a government shutdown raises concerns about the well-being of federal employees and the broader implications for the American public. It highlights the need for Congress to reach an agreement and pass a spending deal to ensure the smooth operation of the government and the provision of essential services. Failure to do so will not only disrupt the lives of federal workers but also have far-reaching consequences for the economy and the daily lives of Americans.
0. “Congress Scrambling to Avoid Government Shutdown” The Ticker Tape, 22 Sep. 2023, https://tickertape.tdameritrade.com/market-news/congress-scrambling-to-avoid-government-shutdown–19672
1. “Pay for millions of federal workers is at risk with a looming government shutdown” NBC News, 24 Sep. 2023, https://www.nbcnews.com/politics/congress/government-shutdown-federal-workers-lose-pay-military-rcna116891
2. “Does Mail Stop During Government Shutdown? What to Know About USPS” Newsweek, 25 Sep. 2023, https://www.newsweek.com/does-mail-stop-government-shutdown-what-know-usps-1829658
3. “‘We are deeply concerned.' Corporate America is bracing for a lengthy government shutdown” WQOW TV News 18, 25 Sep. 2023, https://www.wqow.com/news/business-and-economy-news/we-are-deeply-concerned-corporate-america-is-bracing-for-a-lengthy-government-shutdown/article_4c5b6568-634f-5e15-8946-ce234f971aa2.html
4. “A federal government shutdown would have wide-ranging impacts in New England” The Boston Globe, 25 Sep. 2023, https://www.bostonglobe.com/2023/09/25/nation/federal-government-shutdown-would-have-wide-ranging-impacts-new-england
5. “Government Shutdown Would Disrupt Employers and Workers” SHRM, 22 Sep. 2023, https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-law/pages/federal-government-shutdown-looms-2023.aspx
6. “Shutdown Watch: Here's What Stops – And Doesn't – If Federal Funding Lapses” Bloomberg, 22 Sep. 2023, https://www.bloomberg.com/news/articles/2023-09-22/shutdown-watch-here-s-what-stops-and-doesn-t-if-federal-funding-lapses
7. “5 Ways a Government Shutdown Could Affect Your Money” Money, 25 Sep. 2023, https://money.com/government-shutdown-affect-money/
8. “Which federal programs will first be impacted in a government shutdown” ABC News, 25 Sep. 2023, https://abcnews.go.com/Politics/federal-programs-impacted-government-shutdown/story?id=103463479
