Under the Constitution, Congress must pass laws to spend money. If Congress can’t agree on a spending bill the government does not have the legal authority to spend money. Since the government runs on a fiscal year from October 1 to September 30, the spending authorization ends today. The Republican-controlled House passed a continuing resolution on September 20 that would have kept the government running until mid-December but would have cut funding to implement the Affordable Care Act (aka Obamacare). The Democratic-majority Senate rejected that plan and last week approved its own continuing resolution that included money for Obamacare.
The entire government doesn’t actually shut down during a government shutdown, does it?
No. Programs deemed “essential” — which includes, among other agencies and services, the military, air traffic control, food inspections, etc. — would continue as normal. “Non-essential” programs and services such as national parks and federal museums would be closed. Federal workers deemed non-essential will also be furloughed.
What about government benefit checks?
Benefits like Social Security, Medicare, and retirement for veterans are unaffected, though if the workers who mail the checks are considered “non-essential” it may result in delays.
How do lawmakers work if the Capitol is shut down and their workers are furloughed?
Congress is exempted from the furloughs and the Capitol building will stay open, so lawmakers aren’t really affected. Several types of executive branch officials and employees are also not subject to furlough. These include the president, presidential appointees, and federal employees deemed excepted by the Office of Public Management.
Will I still get mail?
Yes. The United States Postal Service is exempt from the federal government shutdown because it does not receive it’s budget from annual appropriations from Congress.
Will government workers still get paid?
Federal workers placed on furlough will not get paid during a shutdown. However, after past shutdowns, Congress has voted to pay furloughed workers retroactively.
Could government agencies ignore the shutdown?
Under a federal law known as the Anti-Deficiency Act, it can be a felony to spend taxpayer money without an appropriation from Congress.
Would a shutdown save the government money?
Not if past shutdowns are any indication. The Committee for a Responsible Federal Budget reports that estimates vary widely, but “evidence suggests that shutdowns tend to cost, not save, money.” The last shutdown cost the government $1.4 billion, according to an estimate by the Office of Management and Budget.
So we’ve had such shutdowns before?
Since 1976, there have been 17 shutdowns, though before the 1980s the government continued operating at reduced levels without furloughing workers. The last one lasted 21 days from Dec. 15, 1995, to Jan. 6, 1996. It came soon after a five-day shutdown that lasted from Nov. 13-19, 1995. Those shutdowns were sparked by a disagreement over tax cuts between then-President Bill Clinton and former House Speaker Newt Gingrich.
In Becoming Europe, Samuel Gregg examines economic culture - the values and institutions that inform our economic priorities - to explain how European economic life has drifted in the direction of what Alexis de Tocqueville called "soft despotism", and the ways in which similar trends are manifesting themselves in the United States.