In the United States, a government shutdown occurs when a political fight over spending results in a federal agency or program not receiving funding to keep operating. The shutdown can affect hundreds of thousands of workers, with many furloughed or asked to work without pay. Essential services such as law enforcement and air traffic control continue, but their operations can be interrupted, as was the case during the 2018-2019 shutdown. The shutdown can also affect large numbers of government contractors and employees from companies that supply them or that receive contracts to provide services.
Each year, the Office of Management and Budget issues guidance and instructions to federal agencies about how they should prepare for a shutdown. Federal agencies then develop their own contingency plans that identify activities that can and cannot proceed during a shutdown. For example, a National Park Service plan might indicate that some open-air parks will be closed; visa and passport applications won’t be processed; bankruptcy cases won’t be processed; payments to federal jurors won’t be made; and some health research won’t be carried out.
A few days of a government shutdown may cause some inconvenience, but it’s unlikely to have a significant impact on the economy. But a longer shutdown could harm the country’s reputation abroad, displaying a divided and volatile domestic image to international allies and competitors. And a prolonged shutdown would make it difficult for federal agencies to meet ongoing responsibilities and commitments, including issuing regulations and maintaining essential services.