congress government shutdown

congress government shutdown

The Impact of Government Shutdowns on Congress and the Nation

1. Introduction to Government Shutdowns

Funding the government is generally conceded to be the most important thing the Congress does each year. The year-round provision of government goods and services imposes on the government the responsibility to set aside sufficient revenues to pay for those goods and services when provided. The performance of this responsibility is commonly tested annually due to the United States’ dual system of appropriations and authorizations, as well as its structurally fragmented executive. Each year, the government experiences disruptions related to funding around the end of the fiscal year. Typically, both the Congress and the Executive Branch are involved in the disruptions, which usually come in the form of a full year or temporary government shutdown. Through political and legislative actions, funding periods have converged on the end of the fiscal year. This creates within Congress a string of legislative sessions through the summer and fall, commonly referred to as “crunch time” or “crunch time sessions”.

Through political and legislative actions, funding periods have converged on the end of the fiscal year, creating results that are potentially adverse for the delivery of government services and certain government employees. The Constitution of the United States, numerous federal acts, and long-standing government practices combine to allow increases in total tax extraction sufficient to pay for current and future spending, with the government providing selected products or services directly to citizens, as well as provision of private goods and selected public goods. We define a government shutdown to occur when at least one annual appropriation act is not in effect, and the act requires all funds to operate most of the functions of one or more federal agencies or departments. The intent of a government shutdown is both to limit the level of overall tax extraction and to reallocate the employment of certain government employees, selected non-productive activities, and limited capital to the private sector.

2. Causes and Triggers of Government Shutdowns

A significant dilemma for Congress when it has not completed action on all of the regular appropriations measures, either individually or as a package, is whether to adopt continuing resolutions that provide temporary budgets for the not-yet enacted regular appropriations. A central reason for this dilemma is the time at which many of the regular appropriations are initially considered and dealt with on the House and Senate floors. The time after the end of the fiscal year and before new fiscal year regular appropriations acts are signed into law is commonly referred to as the “funding gap” period, and both the lack of timely continuing appropriations and the lack of available carryover balances when regular appropriations from the previous fiscal year remain unenacted create this condition. Another trigger of a funding gap is uncertainty about whether a President will sign a regular appropriations measure into law. Such uncertainty can occur while Congress and the President are developing a measure, or when one or both branches do not want a phase of the appropriations process to proceed further.

3. Effects of Government Shutdowns on Congress and the Nation

Programs that are not excepted, and activities of federal entities and employees who conduct other than excepted activities using funds that have not been specifically appropriated for their conduct are essentially “suspended.” While exempted personnel continue to work, most government operations are terminated or conducted on a significantly reduced basis with consequent destruction of the normal process of policy-making in such areas. At the same time, basic functions of the state continue, such as the postal service, national defense, federal prisons, benefits programs and regulatory functions, such as the operation of current Social Security and Medicare programs or directly related manufacturing work by essential personnel. These continuing functions will be carried out regardless of the availability of appropriated funds. Funding for programs and activities with normal timing situations such as defense, Veterans’ payments, and their legislative administrative costs is frequently available.

Without regular appropriations, the government operates on the basis of continuing appropriations or shut down. All non-exempt (specially excepted) employees in affected agencies are furloughed. Under spending “irregularities,” continuing appropriations are limited and government activities are suspended in whole or in part. This suspension of activities may seriously affect many national functions and services. Government shutdowns have impacted the nation in direct and indirect ways, as well as having effects on the normal functioning of the legislative and executive branches, particularly on the ability to plan and execute public policy and on the formulation and communication of the President’s proposed budget.

4. Strategies to Prevent and Mitigate Government Shutdowns

Any attempt to prevent one house from performing its legislative responsibilities, and to create loopholes in the Constitution that allow legislation to be inserted into statutes without constitutional formality, would give the bills passed by the house short shrift and in some cases ignore the will of the people it represents.

In pursuing these strategies, Members may wish to keep in mind that ASE is a part of an internal Enrolled Bill Rule within each house that is cited as the basis for the work of the Office of the Clerk and the Office of the Secretary. This Rule is among the only constitutionally-sanctioned instances in which the internal proceedings of the two houses are legally interdependent, recognizing the independence of each house but ensuring that the president has the opportunity to exercise a veto by using a pocket veto. It is a necessary enabling act by which each house permits the other to act in regular business on its own.

As discussed later in this report, the federal rate of contracting is not decreased when the government shuts down, contrary to what might be expected. Some key strategies for preventing shutdowns or mitigating their impact if they should occur are discussed herein. Types of Congressional Strategies include Apportionment in Two-Year Cycles, extending the deadline, Conference committee is necessary, fail-safe appropriations, funding at the prior year’s level, and a small number of standalone bills.

As a general matter, a government shutdown is thought of as an undesirable event. A lapse in federal funding disrupts the funding flow to government agencies. For workers, it is an unprecedented and unwieldy event. Public services are temporarily suspended, and many small businesses and other entities that contract with or are located closely to the government are also affected. The larger economy is also affected if the shutdown is protracted.