The new fiscal year (FY) begins on October 1, 2023. House Republicans’ infighting and refusal to work with Democrats have stalled passage of the 12 annual government funding bills by the deadline – resulting in a government shutdown.
Throughout the shutdown, my office will remain open and my staff stands ready to assist all of our constituents with matters dealing with federal agencies. If you have any questions, or need assistance, you can call my office directly at: (714) 559-6190
But right now, here’s what you need to know.
Why does the government shut down?
Each year, Congress must pass government funding bills for federal programs. When Congress fails to enact the 12 annual appropriation bills, federal agencies must cease all non-essential functions until Congress acts. If Congress is unable to pass all 12 appropriations bills by the fiscal deadline on September 30th, then there is an alternative to keep the machinery of government humming by passing a short-term funding bill, also known as a continuing resolution (CR).
How many times has this happened?
There have been 14 shutdowns since 1981.
The longest government shutdown was December 21, 2018 under the Trump Administration, along with a Senate and House Republican majority. The shutdown lasted 34 days.
What does a shutdown mean?
In a government shutdown, hundreds of thousands of federal workers would be furloughed and a wide range of government services would be suspended. Government workers who are not furloughed would work without pay for the duration of the shutdown.
What government services would cease?
Social Security, Medicare and SSI benefits: Checks are still sent out, but benefit verification as well as card issuance would cease. The Social Security Administration (SSA) will also stop processing overpayments. Customer service wait times will dramatically increase.
Veterans’ services: All VA medical facilities and clinics will remain operational, and the VA will continue to process veterans’ benefits. However, services that will cease include education and job training, support for veteran owned businesses, and assistance for homeless veterans. Military and federal retirees will continue to receive their retirement benefits, but processing new applications or other requested changes will be delayed.
U.S. military personnel and federal law enforcement: All active-duty and Guard and Reservists on active-duty orders are required to work without pay. On-base non-acute health care will cease, but off-base care provided through Tricare will not be affected. On-base child care will be open on a case-by-case basis. Federal law enforcement will also be required to work without pay for the duration of a shutdown.
Environmental and Food Inspection: The Environmental Protection Agency (EPA) will stop inspecting most hazardous waste sites, as well as drinking water and chemical facilities. Efforts to address dangerous contaminants like PFAS — which are linked to severe health effects, including cancer — will be delayed.
Federal housing assistance: The Federal Housing Administration (FHA) will stop insuring some new mortgages and the Department of Housing and Urban Development (HUD) will stop processing some new loans. The Department of Agriculture (USDA) will stop new loan and loan guarantee activity. The VA will continue to guarantee home loans. Funding for federal housing assistance programs, such as Housing Choice Vouchers, may be jeopardized.
National Parks: Services that require National Park Service staff (including trash removal and operating campgrounds and concessions) will be stopped. Closures will be determined on a location-by-location basis. Federal parks and monuments in Washington, D.C. will remain accessible. Smithsonian museums will also be impacted.
Air Travel: Air traffic controllers, Transportation Security Administration (TSA) officers, and Customs and Border Protection (CBP) agents will remain on the job without pay. During the 2018-2019 shutdown, air travel was strained as a result of air traffic controllers and TSA agents working without pay. Travelers faced longer lines as some TSA agents did not report to work and security checkpoints were closed, while the absence of ten air traffic controllers temporarily stopped travel at LaGuardia Airport and caused delays at several major airports.
Small Businesses: The Small Business Administration (SBA) will stop processing new business loans, such as through the 7(a) and 504 programs. However, SBA’s Disaster Loan Program will continue regular operations.
Mail: The U.S. Postal Service is not affected by a shutdown.
Health and Human Services: The National Institutes of Health (NIH) would be prevented from admitting new patients or processing grant applications. In 2013, states were forced to front the money for formula grant programs such as Temporary Assistance for Needy Families (TANF, sometimes described as “cash welfare”).
Passports Services and Help for Americans Overseas: Consular services, passport services, and visa services will continue in the immediate aftermath of a government shutdown. In a prolonged shutdown, passport and visa issuance could be slowed. Access to passport agencies located in some government buildings may be limited.
Internal Revenue Service (IRS): As a result of funds provided in the Inflation Reduction Act, normal IRS operations would continue and all 83,000 employees would be exempt from furlough.
Food Assistance: The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) will quickly run out of funding and be unable to provide food for children and parents in need. In the case of a prolonged shutdown, Supplemental Nutrition Assistance Program (SNAP) benefits may also be affected.
Which government functions would continue?
Military operations, air traffic control, medical care of veterans and federal criminal investigations are among the essential activities that go on. (In the 2019 shutdown, air traffic controllers working without pay for a month threatened to walk off the job — a development that hastened the end of the shutdown.) The US Postal Service and Federal Reserve have their own funding streams so are largely unaffected. The Internal Revenue Service also might be able to stay open during the next shutdown, thanks to funding it received in the Inflation Reduction Act to help the agency modernize.
What happens to government checks?
Entitlement programs such as Social Security and Medicare are considered mandatory spending, meaning they don’t need annual appropriations to continue distributing money. That doesn’t mean such programs are guaranteed to be unaffected. During a 1996 shutdown, even as Social Security checks continued to go out, “staff who handled new enrollments and other services, such as changing addresses or handling requests for new Social Security cards, were initially furloughed,” according to the Committee for a Responsible Federal Budget. And during the 2018-2019 shutdown, the Department of Agriculture had to rely on a special authority included in the previous continuing resolution to continue issuing food stamps.
What is the process to end a government shutdown, and can the President unilaterally end it?
To end a government shutdown, the House and Senate need to pass, and the President must sign, funding legislation to fund the departments and agencies that have been shut down. The President does not have the power to end a shutdown unilaterally. The funding bills follow the same legislative process as any other bill, requiring approval from both the House and Senate before the President can sign them into law.
What is the impact of a government shutdown on the public and the U.S. economy?
Shutdowns are detrimental to both the public, who face service and program disruptions, and federal employees, who are either furloughed or required to work without pay. Moreover, they pose a significant strain on government resources. The Office of Management and Budget (OMB) and federal agencies need to develop and implement shutdown plans, a process that requires substantial staff time and resources, potentially detracting from public services.
Shutdowns also cause revenue losses, such as those from visitor fees or gift store sales when national parks close. Additionally, shutdowns negatively impact the economy. The Congressional Budget Office estimated that the 2018-2019 shutdown cost the U.S. economy $11 billion, mainly due to federal workers reducing their spending in response to lost pay. Notably, this decrease in spending may not rebound even after workers receive their back pay.