Government shutdown occurs when the President and Congress fail to pass a new fiscal year funding bill by a deadline set in law. If a shutdown does occur, non-essential services are halted and many workers are sent home without pay until the situation is resolved. Some essential services continue, such as national parks, and airport security officers. In the past, a lack of federal funding has resulted in delays and backlogs of work that affect citizens. Examples include a delay in processing passport applications, responses to employment-related visa inquiries, and customer service for student loan borrowers.
This issue is complex, as many agencies operate with multi-year and mandatory appropriations that do not require annual reauthorization by Congress and therefore are unaffected by a lapse in funding. There have been 14 funding gaps since the 1981 Civiletti opinion, but most were short-lived and did not broadly impact government operations.
Nevertheless, when a government shutdown happens, it disrupts vital services for millions of Americans. NLC is encouraging local leaders to take action by communicating with their Congressional delegations about the impact of this impasse on their communities and urging them to support a bipartisan solution. Local leaders should also consider working with their private sector partners to establish a fund for loans or assistance for federal contractors and employees living paycheck-to-paycheck who would lose wages during a government shutdown. For example, the National Parks Foundation has established a temporary fund for visitors to assist with the cost of entrance fees during a shutdown.