Summary: If Congress doesn’t pass funding on time, parts of the federal government pause. Here’s who’s affected, what keeps running, and why it matters for your wallet.
Why the U.S. Government Shuts Down
Each fiscal year, Congress must pass 12 appropriations bills—or a temporary “continuing resolution”—to fund federal operations. If lawmakers miss the deadline, funding lapses and affected agencies must stop non-essential work. In short: no approved budget = no funding = paused operations.
Who Is Affected the Most
Federal Employees
Agencies classify roles as “essential” (protecting life and property) and “non-essential.” Non-essential staff are furloughed without pay; essential staff continue working—often without pay until funding resumes.
Public Services
- National parks and museums close or operate in a limited way.
- Passport and visa processing slows, and some tax and research functions pause.
- Routine inspections and regulatory work are delayed.
What Keeps Running
Under the Antideficiency Act, essential operations continue:
- Air traffic control, border security, and federal law enforcement
- Military and national defense activities
- Social Security, Medicare, and Medicaid payments
These services may run with minimal staffing and delayed support functions.
Economic & Personal Impact
- Federal workers miss paychecks, reducing consumer spending in local economies.
- Contractors and small businesses lose revenue as projects stall.
- Prolonged shutdowns can slow GDP growth and sap investor confidence.
Quick Summary Table
| Aspect | During Shutdown | After Shutdown |
|---|---|---|
| Federal Employees | Furloughed / unpaid | Back pay (historically) |
| Public Services | Delayed or closed | Resume gradually |
| Economy | Growth slows | Partial recovery |
| Citizens | Service delays | Return to normal |
What You Can Do
- Expect delays for passports, tax refunds, and federal permits.
- Check official agency pages for closure updates.
- Plan travel around park closures or staffing shortages.
- Watch for news about a continuing resolution or funding bill—those end shutdowns.
When and How It Ends
The shutdown ends after Congress approves a funding bill (or temporary extension) and the President signs it. Operations restart, backlogs clear over time, and federal employees receive back pay—though contractors may not.
