A government shutdown is when the federal government stops operating because there is no approved annual funding from Congress. Specifically, this happens when the funding for a department or agency expires and no full-year spending bill or CR is in place. A shutdown can affect the public in a number of ways, including halting food safety inspections and national parks closures and reducing the ability to issue passports and process business loans. It can also lead to long lines at airport security checkpoints and flight delays. Moreover, it can impact the economy by lowering GDP, as was the case in the short-term shutdown from December to January of this year.
These shutdowns are the result of the executive and legislative branches fighting over fiscal policy, especially when it comes to who gets paid and what services they provide. Each agency develops its own shutdown plan, following the guidance released in previous shutdowns and coordinated by the Office of Management and Budget. It identifies which activities can and cannot continue during a funding lapse, with essential services (like law enforcement and air traffic control) continuing without pay while other functions stop.
Local communities can be greatly affected by a prolonged shutdown, as they lose access to many federal programs that help their residents, such as SNAP benefits for low-income families and monthly LIHEAP assistance to help pay heating bills. In addition, the shutdown will have a direct financial impact on private companies that contract with the federal government to deliver certain goods and services, such as construction projects and federally funded research.