A government shutdown occurs when there is a lack of funding after the budget cycle ends and Congress and the president are unable to agree on new appropriation bills. Non-essential federal employees are furloughed while those whose work is necessary for national security and public safety (like air traffic controllers, law enforcement and military personnel) must continue to work without pay. Essential services independent of annual appropriations bills, such as inpatient and emergency medical care, SNAP benefits, postal delivery and Smithsonian museums, continue but may experience some disruptions.
Each agency develops its own shutdown plan based on guidance from the White House Office of Management and Budget (OMB). In general, departments and agencies that lack appropriations must shut down with the exception of “excepted activities” that relate to the safety of human life and protection of property. Generally, contractors cannot be paid during a shutdown, though those that have multiyear appropriations or contracts for services that cross fiscal years (“severable services”) may continue. Social Security, Medicare and SSI recipients continue to receive their checks, but customer service functions like benefit verifications and card issuance stop.
The absence of back pay for affected workers exacerbates financial hardship and uncertainty that causes families to dip into savings or even to struggle to afford food, shelter, medicine and other basic necessities. This can wreak havoc on communities and the economy and is completely avoidable.
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