The federal government is headed into a shutdown. What does it mean?
WASHINGTON — The federal government is heading toward a shutdown that will disrupt many services, squeeze workers and roil politics as Republicans in the House, fueled by hard-right demands for deep cuts, force a confrontation over federal spending.
While some government entities will be exempt — Social Security checks, for example, will still go out — other functions will be severely curtailed. Federal agencies will stop all actions deemed non-essential, and millions of federal employees, including members of the military, won’t receive paychecks.
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A look at what’s ahead if the government shuts down on Oct. 1.
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WHAT IS A GOVERNMENT SHUTDOWN?
A shutdown happens when Congress fails to pass some type of funding legislation that is signed into law by the president. Lawmakers are supposed to pass 12 different spending bills to fund agencies across the government, but the process is time-consuming. They often resort to passing a temporary extension, called a continuing resolution or CR, to allow the government to keep operating.
When no funding legislation is enacted, federal agencies have to stop all nonessential work and will not send paychecks as long as the shutdown lasts.
Although employees deemed essential such as air traffic controllers and law enforcement officers still have to report to work, other federal employees are furloughed. Under a 2019 law, those same workers are slated to receive backpay once the funding impasse is resolved.
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WHEN WOULD A SHUTDOWN BEGIN AND HOW LONG WILL IT LAST?
Government funding expires Oct. 1, the start of the federal budget year. A shutdown will effectively begin at 12:01 a.m. if Congress is not able to pass a funding plan that the president signs into law.
It is impossible to predict how long a shutdown would last. With Congress divided between a Democratic-controlled Senate and Republican-led House, and Speaker Kevin McCarthy’s hard-right conservatives looking to use the shutdown as leverage for spending cuts, many are bracing for a stoppage that could last weeks.
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WHO DOES A SHUTDOWN AFFECT?
Millions of federal workers face delayed paychecks when the government shuts down, including many of the roughly 2 million military personnel and more than 2 million civilian workers across the nation.
Nearly 60% of federal workers are stationed in the department of Defense, Veterans Affairs and Homeland Security.
Federal workers are stationed in all 50 states and have direct interaction with taxpayers — from Transportation Security Administration agents who operate security at airports to Postal Service workers who deliver mail.
Some federal offices will also have to close or face shortened hours during a shutdown.
Beyond federal workers, a shutdown could have far-reaching effects on government services. People applying for government services like clinical trials, firearm permits and passports could see delays.
Businesses closely connected to the federal government, such as federal contractors or tourist services around national parks, could see disruptions and downturns. The travel sector could lose $140 million daily in a shutdown, according to the U.S. Travel Industry Association.
Lawmakers also warn that a shutdown could rattle financial markets. Goldman Sachs has estimated that a shutdown would reduce economic growth by 0.2% every week it lasted, but growth would then bounce back after the government reopens.
Others say the disruption in government services has far-reaching impacts because it shakes confidence in the government to fulfill its basic duties. The U.S. Chamber of Commerce warned, “A well-functioning economy requires a functioning government.”
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WHAT ABOUT COURT CASES, THE WORK OF CONGRESS AND PRESIDENTIAL PAY?
The president and members of Congress will continue to work and get paid. However, any members of their staff who are not deemed essential will be furloughed.
The judiciary will be able to continue to operate for a limited time using funds derived from court filings and other fees, as well as other approved funding.
Notably, funding for the three special counsels appointed by Attorney General Merrick Garland would not be affected by a government shutdown because they are paid for through a permanent, indefinite appropriation, an area that’s been exempted from shutdowns in the past.
That means the two federal cases against Donald Trump, the former president, as well as the case against Hunter Biden, the son of President Joe Biden, would not be interrupted. Trump has demanded that Republicans defund the prosecutions against him as a condition of funding the government, declaring it their “last chance” to act.
