What does the US government shutdown really mean? – DW – 12/20/2024
President-elect Donald Trump isn’t in office yet, but he’s already meddling in Congress and causing chaos right before the Christmas holidays. Earlier this week, he tried to pressure Republican lawmakers to support a federal spending bill he supported, which was rejected.
US lawmakers now have until Friday evening to come up with an alternative plan that would pass muster with both Republicans and Democrats.
If they can’t agree, a government shutdown will begin at 12:01 a.m. on Saturday. Since it is a weekend, its widespread impact will start falling from Monday. The government shutdown is as disruptive as it sounds.
What is the US government shutdown?
A government shutdown occurs when a government cannot agree on part or all of its annual budget. This affects discretionary spending, which must be appropriated each year.
Such a shutdown basically means that the federal government stops paying federal employees and contractors who work for the government. This is a situation that affects each part of the government differently.
In the past partial shutdowns have occurred when part of the budget was approved, leaving some agencies fully funded and able to operate normally. And then there were more shutdowns when no budget was signed into law.
During a full shutdown all non-essential US government agencies and programs are closed because they depend on annual government funding.
Despite the government shutdown, essential services and mandatory spending programs do not stop. In previous shutdowns, active-duty military personnel and most Border Patrol agents, federal law enforcement agents and air traffic controllers have remained on the job.
While discretionary spending is up for discussion every year, mandatory spending is approved for a longer period or is permanent. So things like Social Security, Medicare and Medicaid payments will continue as health benefits for military veterans. Mail delivery and the Federal Reserve are not affected because they are funded differently.
Who is affected by government shutdown?
Federal workers are the first to feel the effects of the government shutdown.
According to the , complete shutdowns between 2013 and early 2018 meant that about 850,000 of the 2.1 million non-postal federal employees were temporarily furloughed. Committee for a Responsible Federal BudgetA non-partisan group based in Washington, DC that focuses on fiscal policy.
Furloughed employees are not allowed to work during this time nor do they receive their pay cheques. But when funded, backed up and kept running by the government they are guaranteed retroactive payment.
In the past, some agencies like the Defense Department, State Department or IRS have asked workers to come to work — still without pay — to keep things running smoothly.
Many workers in essential services must keep working but are not paid during the shutdown.
Federal officials who have been confirmed by the Senate cannot be discharged. The President and members of Congress will continue to work and get paid.
What happens during government shutdown?
Many agencies or programs are not deemed essential and cease operations partially or completely during a government shutdown. These include national parks, national monuments, the Library of Congress, and museums such as the Smithsonian.
The Environmental Protection Agency, Food and Drug Administration, Federal Trade Commission and Securities and Exchange Commission are among the affected departments.
Depending on how long things stay closed, huge backlogs of work could accumulate while millions of dollars in revenue like ticket sales are lost. This also means that regular health and safety inspections are not carried out. Monthly reports on employment and inflation are not published on time. Additionally, agencies have to spend time and money creating complex contingency plans.
For federal employees who live paycheck to paycheck, this could mean temporary financial discomfort and resentment.
How long does the government shutdown last?
This is not the first government shutdown. Presidents Clinton, Obama and Trump have all experienced them. The longest was in 2018-2019 and lasted 35 days.
A responsible federal budget committee has accounted for four shutdowns that caused government operations to be disrupted for more than one business day.
David Wessel of the nonprofit Brookings Institution previously wrote, “A shutdown of a few days is a hassle — and undermines public confidence in the ability of American politicians to conduct business — but it would likely have a significant impact on the economy.” Not there.” Year. “However, a prolonged closure can cause major problems, even if it is at most temporary.”
The Congressional Budget Office agrees that most of the economic effects of the government shutdown are temporary. But they calculated That the 2018–2019 shutdown caused a $3 billion (€2.89 billion) reduction in GDP that will never be recovered.
Editing: Ashutosh Pandey