A government shutdown occurs when Congress cannot agree on a new spending bill to fund the entire federal government. It can disrupt or delay essential services and harm the economy and the federal workforce. It also provides an opportunity for adversaries to undermine U.S. credibility on the global stage by fueling the perception of political dysfunction and economic uncertainty.
A funding gap that lasts for more than a day results in a shutdown, except for activities deemed “excepted” by the Attorney General in an opinion, such as border protection, in-hospital and air traffic control, and law enforcement. Other exceptions include those funded by permanent user fees (like visa fees) and mandatory spending (like Social Security, Medicare, and Medicaid).
During a shutdown, most non-postal federal workers are furloughed, including those who work on Excepted Activities. They are not paid during the shutdown and will not receive back pay once the budget is approved. Over two million people in all 50 states work for the federal government, and missed paychecks can put financial stress on families and create a ripple effect across local economies.
Impact on Military Readiness and Operations
A federal government shutdown can undermine national security by disrupting the training, maintenance, and operations of military equipment and personnel. It can also derail strategic planning and threaten readiness, potentially jeopardizing deployments and escalating tensions in regions of critical importance to the United States. In addition, the perception of a divided government and chaotic domestic politics can provide adversaries with an opportunity to exploit divisions, sow discord, and advance their own objectives by casting the United States as a weak, distracted, and unreliable power.