The government shutdown in the United States began on October 1, with no end in sight. As a result of the budget freeze, US President Donald Trump has already announced the first layoffs of federal employees. But what does the word “shutdown” actually mean? And how long can this go on?
What is a shutdown?
In American politics, a “shutdown” occurs when Congress – the Senate and the House of Representatives – and the President fail to agree on releasing new budget funds. If no budget, even a transitional budget, is passed, the government cannot approve new spending, which means large parts of the state administration temporarily stop work.
The legal basis for this is provided by the “Antideficiency Act”, which was first enacted in 1884. It prevents the federal government from spending money without the prior approval of the legislature.
This is what happened last week. Till the last minute there was hope that Congress would agree on the funding. But when no agreement was reached, the shutdown began, with the ruling Republican Party and the opposition Democratic Party each blaming the other side for the situation.
How often do shutdowns occur?
There have been 21 shutdowns since 1976, including the current one. The longest shutdown lasted from December 2018 to January 2019, a total of 35 days – also under President Trump, during his first administration.
At the time, Congress refused to allocate $11 billion (€9.5 billion) to build a wall along the border with Mexico. Ultimately, a budget was passed that did not include those funds.
What are the consequences of the shutdown?
An estimated 750,000 federal workers have been furloughed due to the budget freeze. These employees mainly belong to the federal administration, but also in the aviation sector and in public institutions such as national parks and state museums. This means that shutdowns can also affect tourists: during the shutdown in 2013, several million visitors were turned away at national parks and state museums.
However, police, border security, hospitals and air traffic control remain operational, although sometimes on a more limited basis as support staff have been furloughed.
This has serious consequences for both the general public and the employees themselves. Since the last shutdown in 2018-2019, a law has been signed into law guaranteeing back pay for all affected federal employees as soon as the new budget takes effect. But whether it can be implemented this time remains a question.
The Trump administration has already directed several federal agencies to consider permanent layoffs; Meanwhile, back pay is not guaranteed for government subcontractors. And because many Americans lack savings, the difference in their pay can be financially devastating, even if they are paid at a later date.
Why did the talks fail?
This time the main issue is health care policy. Democrats are demanding that Republicans continue state support for the Affordable Care Act, also known as Obamacare, the health insurance system introduced under President Barack Obama. He is also campaigning to roll back cuts to Medicaid, the health care program for low-income citizens. The cuts were part of Donald Trump’s One Big Beautiful Bill Act, which was passed this July.
Republicans vehemently reject these demands and allege that Democrats also want to allocate health care funds to people without valid papers, which the latter party rejects.
What benefit can Trump get from the shutdown?
The shutdown is a double-edged sword for Democrats. On the one hand, the budget is one of the few ways the party can counter the US president’s campaign for political integration. Trump, on the other hand, has welcomed the shutdown as an opportunity to further reduce the size of the state apparatus. He had already announced the first layoffs of government officials last Sunday and the final dismissals of federal officials are currently underway, Trump told reporters at the White House in Washington.
“It’s all because of the Democrats. The Democrats are losing a lot of jobs,” he said.
Meanwhile, subsidies for climate projects worth about $8 billion (€6.9 billion) are also said to be cut.
what happens next?
It is unclear how long the shutdown will last. Congress will have to reach an agreement, but both sides are adamant on their positions. The budget impasse will end only if a transition budget is passed, which would require Republicans to have at least 60 of the 100 votes in the Senate. Since they have only 53 seats themselves, they are dependent on the Democrats’ seven votes.
And while Democrats want more concessions on health policy, they are under pressure from voters to come to a deal and end the shutdown.
This article was originally published in German.