The US federal government forced businesses that were closed at 12:10am (04:01 GMT) on Wednesday, 4:01 GMT after Congress failed to pass a new spending bill, enforcing businesses that were deemed essential to closure.
President Donald Trump threatened to use the budget impasse to push for massive layoffs of federal employees.
Democrats and Republicans remain divided beyond spending priorities as Democrats push to protect healthcare, social programs and foreign aid while Republicans demand cuts.
This is not the first time Washington has faced such a standoff. The graphics below show the gap in all US funding since 1976 and government closures.
What is a government closure?
Government closures occur when Congress disagrees with the budget, so some of the federal government will have to close until the spending plan is approved.
The government’s fiscal year will be held from October 1st to September 30th, so closures tend to occur in October.
How many times has the government been shut down?
The current budget process was established in 1976. Since then, the government has gained 20 funding gaps, leading to 10 shutdowns.
A funding gap occurs when Congress misses the deadline for passing a budget or suspension spending bill (also known as a continuous resolution) and without the government having legal authority and spending money.
A single shutdown includes multiple funding gaps before a long-term contract is reached once a temporary funding action expires. A shutdown only occurs when government activities actually cease due to the funding gap.
Before the 1980s, the funding gaps usually did not lead to closures, and institutions continued to operate assuming that funds would soon recover.
Since 1980, Attorney General Benjamin Karimetti has released his legal opinion, stating that under federal law, government agencies may not be able to spend money without Congressional approval. Only critical services such as national security, air traffic control, and law enforcement can continue.
Since 1982, this new legal basis means that the funding gap will often result in more government shutdowns until Congress settles the standoffs.
When was the last government shut down?
The last government shutdown occurred in December 2018 and January 2019 with President Donald Trump’s first term, with Democrats opposed by politicians in clashing with a $5 billion demand for funding the US Mexican border wall.
When was the longest shutdown?
The final closure was the longest in US history, from December 22, 2018 to January 25, 2019 to January 25, 2019, when it announced that it had reached a temporary deal with Congressional leaders to reopen the government for three weeks while negotiations on the border wall continue.
What happens during shutdown?
During government closures, nonessential federal services have been suspended or reduced, with many government officials being abandoned or placed on unpaid leave.
Meanwhile, key personnel, such as military service members, law enforcement officers, and air traffic controllers, often need to continue working unpaid until funds are restored.
How will government closures be resolved?
The closure will usually be resolved once Congress passes an ongoing resolution. This provides short-term funding while long-term budget negotiations continue.
Since 1990, all shutdowns have ended through continuous resolution passing.
Which services will be stopped?
Shutdowns affect essential federal employees and businesses, not only those and businesses that rely primarily on government services.
The federal government is the largest employer in the country. As of November, there were over 3 million workers (approximately 1.9% of private workers), according to data from the Bureau of Labor Statistics, reported by the Pew Research Center.
The Congressional Budget Office estimated that if funds expire in 2026, it could employ around 750,000 federal employees daily, with wage losses of around $400 million each day. If some employees can be brought back, the exact number of workers may change over time, as some agencies may increase layoffs if the shutdown continues, as some agencies may increase layoffs.
Past closures have affected a number of services and institutions, including:
National Parks and Monuments Federal Museums Federal Research Projects Processing of Specific Government Benefits IRS Taxpayer Services
Which services are still working?
Even during the closure, many core government functions are in operation. Some are classified as essential to public safety and welfare, while others continue as they are funded separately from the annual budget process through mandatory or independent programs. An example is:
Social Security and Medicare benefits military and federal law enforcement US Postal Service Air Traffic Control US Passport Agency
