A government shutdown occurs when the President has not signed into law an annual funding bill (a full appropriations bill or CR) passed by Congress. Without such a bill, agencies and programs cannot operate, but must discontinue all non-essential functions until new funding legislation is passed and signed into law. Essential services and mandatory spending programs continue to function, however.
Shutdowns impact the public in a variety of ways, including a halt to food safety inspections, closed museums, federal parks, and other public attractions; delays in processing passport applications, small business loans, or government benefits; longer lines at airport security checkpoints, and more. For the over two million people across the country who work for the federal government, a shutdown means missed paychecks, which puts stress on families.
Local governments are also impacted as they may lose revenue from federal grants and contracts that support local infrastructure, such as streets and sidewalks. In addition, local residents who receive income support programs from the federal government may experience disruption or a delay in services that help them meet basic needs, such as the Special Supplemental Nutrition Program for Women, Infants, and Children or Head Start.
A prolonged shutdown may impact the federal workforce by making it harder for the government to recruit and retain talented employees. A recent study conducted by the GAO found that a prolonged shutdown can alter perceptions of federal jobs and make them less attractive to younger workers, especially those entering the labor market.