Government shutdowns in the United States

This article is part of a series on the
Budget and debt in the United States of America
Major dimensions Economy Expenditures Federal budget Financial position Military budget Public debt Taxation Unemployment Gov't spending
Programs Medicare Social programs Social Security
Contemporary issues Bowles–Simpson Commission Bush tax cuts Debt ceiling history Deficit reduction Fiscal cliff Healthcare reform Political debates Social Security debate "Starve the beast" Subprime mortgage crisis 2007–2008 financial crisis Debt-ceiling crises 2011 2013 2023 2013 budget sequestration Government shutdowns 1980 1981, 1984, 1986 1990 1995–1996 2013 Jan 2018 2018–2019 Related events 2023 Removal of Kevin McCarthy
Terminology Cumulative deficit + Interest ≈ Debt Balance of payments Inflation Continuing resolution
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In the United States, government shutdowns occur when funding legislation required to finance the federal government is not enacted before the next fiscal year begins. In a shutdown, the federal government curtails agency activities and services, ceases non-essential operations, furloughs non-essential workers, and retains only essential employees in departments that protect human life or property.^[1][2] Shutdowns can also disrupt state, territorial, and local levels of government.

Funding gaps began to lead to shutdowns in 1980, when Attorney General Benjamin Civiletti issued a legal opinion requiring it. This opinion was not consistently adhered to through the 1980s, but since 1990 all funding gaps lasting longer than a few hours have led to a shutdown. As of February 2024, 10 funding shutdowns have led to federal employees being furloughed.

The most significant include the 21-day shutdown of 1995–1996, during President Bill Clinton’s administration, over opposition to major spending cuts; the 16-day shutdown in 2013, during the Barack Obama administration, caused by a dispute over implementation of the Affordable Care Act (ACA);^[3] and the longest, the 35-day shutdown of 2018–2019, during the Donald Trump administration,^[4] caused by a dispute over expanding barriers on the U.S.–Mexico border.^[5][6]

Shutdowns disrupt government services and programs; they close national parks and institutions. They reduce government revenue because fees are lost while at least some furloughed employees receive back pay. They reduce economic growth. During the 2013 shutdown, Standard & Poor's, the financial ratings agency, said on October 16 that the shutdown had "to date taken $24 billion out of the economy", and "shaved at least 0.6 percent off annualized fourth-quarter 2013 GDP growth".^[7]