Here’s what happens if there’s a government shutdown: Some government agencies and programs remain open while others—those considered nonessential—close. Government shutdowns can cause delays in pay and economic disruption. The longest shutdown in the U.S. lasted 34 days.
In this guide, we’ll share everything you need to know about government shutdowns, including what they are, how they happen, and how many the U.S. has had. We’ll also explain which agencies remain open during shutdowns and which close, as well as what essential services continue. In case you’ve been affected by a shutdown, we share a list of resources.
Table of Contents
What is a government shutdown?
A government shutdown is when several (but not all) government agencies must close temporarily because Congress didn’t pass a proposed budget, called an appropriations bill.
There are 12 appropriations bills each year, and a committee in the House is assigned to oversee each one. Every year, Congress must agree on a federal funds budget, and when they agree, the president signs it. When none of the bills pass, a government shutdown occurs. When some bills pass and others don’t, a partial government shutdown occurs.
Why do government shutdowns happen?
When Congress can’t agree on a budget, federal agencies can’t operate. The Antideficiency Act says the federal government can’t spend money without congressional approval. Past disagreements over the budget have included disputes over the Affordable Care Act in 2013 and disagreements over border wall funding in 2018 and 2019.
What happens if there’s a government shutdown?
If there’s a government shutdown, several federal agencies will be forced to stop operating. Some employees, deemed essential, will continue working, although they will not receive pay during the shutdown. Nonessential employees will not be able to work until the shutdown ends. However, many essential services continue to run.
Here is a list of typical agency closures. Keep in mind that some shutdowns are partial shutdowns, which means agency closures may vary depending on the individual nature of the shutdown.
Who’s affected by a government shutdown?
Federal agencies and services closures
- Transportation Security Administration (TSA) workers: These are essential employees and are expected to go to work. However, because the federal budget hasn’t been approved, they must work without immediate pay. They will earn back pay when the government reopens. Many employees may not show up to work, which can result in longer lines at the airport.
- Student loan processing: Processing the FAFSA and student loan distribution could be delayed during a shutdown.
- Small Business Administration (SBA): The SBA closes during shutdowns, which can delay loan applications and approvals.
- Smithsonian Museums: The Smithsonian museums close during shutdowns.
- IRS: The IRS contingency plan states that although the IRS would remain open, it would be at reduced capacity with limited services, and 60,000 employees could be furloughed.
- Food and Drug Administration (FDA): The FDA could stop food safety inspections, and 42% of workers could be furloughed.
- National Institute of Health (NIH): The NIH contingency plan explains that it would furlough 75% of staff during a shutdown. There will likely be delays in grant applications, grant processing, and clinical trials.
Employee pay during shutdowns and furloughs
The two main types of federal workers are essential and nonessential employees. During a government shutdown, essential employees must work, but they won’t get paid until the government reopens. The Government Employee Fair Treatment Act of 2019 mandates that all federal employees get retroactive pay after a shutdown.
During the most recent shutdown, in 2018 and 2019, 420,000 federal employees worked without pay, and 380,000 employees were furloughed. Even though shutdowns are temporary and these workers get back pay, the absence of hundreds of thousands of workers, even for a short time, has economic impacts.
The Brookings Institution explains that government shutdowns hurt the public’s confidence in the government. It can also damage GDP growth and cause delays and backlogs of many vital services.
Will Social Security checks be delayed during a shutdown?
No, Social Security checks will not be delayed. Checks still go out during a shutdown. However, other services related to Social Security, like issuing cards or processing applications, could be delayed.
Do VA benefits stop during a shutdown?
No, VA benefits do not stop during a government shutdown. Veterans can still go to VA medical centers, burials will still occur at national cemeteries, and suicide prevention programs and other aid programs continue. Although VA benefits continue, some call centers, hotlines, and regional offices may be closed during a shutdown.
What stays open during a government shutdown?
During a government shutdown, essential services continue to operate. That includes Medicare, Medicaid, the U.S. post office, and Social Security. National Parks remain open, but visitor centers and educational services will be closed. The U.S. Passport Agency will stay open, but a delay could occur.
The TSA and air traffic controllers will remain working. The SNAP program (food stamps) will continue to operate, but the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) could be affected.
How many times has the government shut down?
There’s a difference between a funding gap and a full government shutdown. According to the Peter G. Peterson Foundation, a nonpartisan organization that researches and educates others about America’s financial challenges, the government has shut down 14 times since 1980.
Before that, the government had funding gaps, but it stayed open despite them. In 1980, Attorney General Benjamin Civiletti made a more formal recommendation on how the government should operate during funding gaps, which led to the government shutdowns we are familiar with today.
Altogether, the government has had 20 funding gaps or shutdowns in the past 50 years, according to the Bipartisan Policy Center. Not all of these gaps were noteworthy or long enough to make a negative impact.
What happened during the last shutdown?
The most recent U.S. shutdown occurred from December 22, 2018, to January 25, 2019, making history as the longest shutdown to date. It lasted 34 days and spanned the holiday season. The shutdown was due to disagreements over funding for a U.S.–Mexico border wall.
The shutdown ended when President Donald Trump reopened the government, even though Congress did not approve the funds requested for the wall.
How long do government shutdowns usually last?
Most of the funding gaps and government shutdowns that have occurred so far have been short. According to the Brookings Institution, only four shutdowns lasted more than a day.
Here are the most notable government shutdowns in US history:
- 1996: 5 days (November 14 to November 18)
- 1996: 21 days (December 16, 1995, to January 5, 1996)
- 2013: October 1 to October 16 (16 days)
- 2019: 34 days (December 22, 2018, to January 24, 2019)
The length of government shutdowns depends on several factors, including budget negotiations in Congress and the willingness of both sides of an issue to compromise.
How to prepare for a government shutdown
If you think you’ll be out of work due to a government shutdown, here are our tips and resources to help:
- Make sure you know your agency’s government shutdown contingency plan. Each agency should have a plan like this that outlines what to do in case of a shutdown. Confirm with your supervisors whether you’ll be paid during your leave.
- Assess your personal finances, eliminate unnecessary expenses, and allocate as much savings as you can to an emergency fund. If you’re not sure you’ll be able to save enough money to pay for expenses during a shutdown, you have other resources. The assistance options below might be helpful during a shutdown.
Need help reviewing your finances or making a plan? Money Pickle connects you with a licensed financial advisor for a free 45-minute session—no strings attached. You can use the time to create a spending plan, brainstorm ways to stretch your savings, or talk through other money questions. Booking now can help you feel more prepared if a shutdown happens.
Assistance options during government shutdowns
FAQ
Will I get paid during a government shutdown?
No, federal employees are not paid during a government shutdown, but they will receive retroactive pay after the shutdown.
Are student loans affected by a government shutdown?
A government shutdown could delay student loan processing.
Can I file taxes or get a refund during a shutdown?
The IRS remains open during a shutdown, though some services could be delayed due to its reduced workforce.
