A government shutdown occurs when Congress fails to pass appropriations bills that fund agencies and programs. These bills are usually passed by September 30, the end of the fiscal year. In order to reopen the government, Congress must pass and the President must sign new appropriations bills or a Continuing Resolution (CR).
A funding gap lasting more than 3 days results in the government rescinding previously approved spending authority until the end of the current budget cycle. A CR is generally less restrictive than an appropriations bill, and it allows some essential operations to continue such as air traffic control and military operations. In contrast, activities that are not considered essential must halt during a shutdown such as passport processing and some food safety inspections.
During a shutdown, most federal employees must stop working, including those involved in air traffic control, national parks, the U.S. Postal Service and federal law enforcement. However, some federal workers classified as “excepted” must remain on the job without pay during a lapse in funding. Other employees who are not deemed “excepted” will be placed on furlough and will not receive any pay until the funding lapse ends. During previous funding gaps, furloughed federal employees have received back pay when regular funding resumes.
Most people should not be affected by a shutdown, but a long one could result in delays in obtaining a passport or a small business loan, and some federal programs could be cut back significantly. For example, if a shutdown lasts for weeks, the Environmental Protection Agency may stop inspecting hazardous waste, drinking water and chemical facilities and efforts to address dangerous contaminants like PFAS that are found at Superfund sites will slow or cease.