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Government Shutdown

A funding gap that occurs when Congress fails to pass appropriations or a continuing resolution — forcing "non-essential" federal employees to be furloughed and many services to halt.

How It Works

During a shutdown, agencies can only perform functions related to the safety of human life or the protection of property. "Essential" employees (law enforcement, military, air traffic control) continue working but may not receive paychecks until the shutdown ends. "Non-essential" employees are furloughed. Federal contractors may or may not be affected depending on their contract's funding status. Recent shutdowns (2013, 2018-19) cost the economy billions and disrupted government services. The 2018-19 shutdown lasted 35 days — the longest in U.S. history.

Related Terms

  • Continuing Resolution (CR)A temporary funding measure passed by Congress when it fails to complete the annual appropriations process — keeping the government funded at prior-year levels.
  • AppropriationA law passed by Congress that authorizes federal agencies to spend a specific amount of money for a specific purpose during a defined period.

About This Definition

This definition is part of the TaxDollarData Federal Spending Glossary31 terms explaining how the U.S. government spends taxpayer money. All definitions are written in plain language for taxpayers, journalists, contractors, and researchers.