President has only been in office again since January, but in those eight months. One thing that hasn’t changed though is the possibility of government shutdowns.
This time, and lawmakers did not approve a stopgap federal funding bill to keep the government running, with a last-minute measure failing in the US Senate on Tuesday night. That means the government has officially shut down as of 12:01 am Washington time (4:01 GMT).
The shutdown is the first of Trump’s current presidency after his first term saw two government shutdowns, including the longest in US history from December 22, 2018, to January 25, 2019.
On Monday, Trump met with Congressional leaders from both parties at the White House, but no deal was reached as Democrats pushed to restore some health care funding and reverse other Medicaid cuts. After the meeting, Vice President said, “I think we’re headed to a shutdown.”
What is a US government shutdown?
A government shutdown occurs when the government has not agreed on its annual budget, in whole or in part. It impacts 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. It is a situation that impacts each part of the government differently.
In the past, there have been partial shutdowns when some of the budget had been approved, leaving those agencies fully funded and able to work as usual. There have also been wider shutdowns when none of the budget had been signed into law.
During a full shutdown, all nonessential US government agencies and programs close since they depend on annual government funding.
Each shutdown is different, and it is hard to know exactly what will happen ahead of time. Some agencies have clear contingency plans and set clear priorities; others do not. Some also have extra cash reserves on hand that could tide them over for a short period.
Still, there are fundamental rules that have applied to previous shutdowns.
Essential services and mandatory spending programs do not stop despite a government shutdown. That means the Secret Service, active-duty military personnel and most border protection agents, federal law enforcement agents and air traffic controllers stay on the job.
Whereas discretionary spending is up for discussion each year, mandatory spending is approved for longer periods or is permanent. So, things like Social Security, Medicare and Medicaid payments will continue to be made as will military veterans’ health benefits. Mail delivery and the are not affected because they are funded in a different way.
Who is affected by a government shutdown?
Federal employees are the first to feel the impact of a government shutdown.
Shutdowns in 2013 and 2018 meant that around 850,000 out of 2.1 million non-postal federal employees were temporarily furloughed, according to the Committee for a Responsible Federal Budget, a Washington, D.C.-based nonpartisan group that focuses on fiscal policy.
Furloughed employees are not allowed to work and do not receive their paychecks during this time. But they are guaranteed retroactive back pay when the government is again up and running.
Employees working in essential services must keep working but are likewise not paid during a shutdown.
Federal officials who have been confirmed by the Senate cannot be furloughed. The president and members of Congress continue to work and be paid.
The Environmental Protection Agency, Food and Drug Administration, Federal Trade Commission and the Securities and Exchange Commission are among the departments most likely to close their doors during a government shutdown.
In past shutdowns, some agencies such as the Department of Defense, State Department or IRS asked furloughed workers to continue working to keep things running smoothly — again without being paid until a spending bill is finally passed.
What about national parks and museums?
Depending on how long things stay closed, huge backlogs of work can pile up while millions of dollars are lost in revenue like ticket sales. Routine health and safety inspections will be put on the backburner.
And important government reports on employment and inflation like the next Consumer Price Index or the Bureau of Labor Statistics’ monthly jobs numbers will not be published on time.
Other agencies or programs like or the are likewise considered nonessential and stop operation either in part or full during a government shutdown.
National parks, national monuments and museums like the Smithsonian could also close, but the Trump administration may force them to stay open with a skeleton staff. But the longer a shutdown goes on, the more likely it is that they could close, too.
For federal employees who live paycheck to paycheck, a government shutdown can mean a temporary financial pinch and resentment.
To add to the general uncertainty, the administration has hinted it could use this shutdown as an excuse for . The White House Office of Management and Budget sent a letter to federal agencies suggesting they could “use this opportunity to consider reduction in force.”
How long do government shutdowns last?
This is not the first government shutdown. Presidents Clinton, Obama and Trump . The longest shutdown was during Trump’s first term in office and lasted for 35 days in 2018-2019.
The Committee for a Responsible Federal Budget tallies up four shutdowns that led to government operations being affected for more than one business day.
“A shutdown of a few days is a hassle — and undermines public confidence in the capacity of US politicians to do the people’s business — but is unlikely to have a significant impact on the economy,” wrote David Wessel from the nonprofit Brookings Institution last year. “A prolonged shutdown, however, can cause bigger problems, albeit most temporary.”
The Congressional Budget Office agrees that most of the economic impacts of government shutdowns are temporary. But it calculated that the 2018-2019 shutdown led to a $3 billion (€2.55 billion) reduction in GDP that would never be made up.
Edited by: Ashutosh Pandey
This article was first published on December 20, 2024, and updated on October 1, 2025.
The post What does a US government shutdown actually mean? appeared first on Deutsche Welle.
