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What is a government shutdown in the USA? Definition and examples

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A government shutdown in the United States occurs when Congress fails to pass appropriations legislation to fund  federal government agencies and operations. A Government shutdown could also occur if the US president refuses to sign the appropriations bill. 

Congress must approve the federal budget for the upcoming fiscal year by a certain date. If the members and women of Congress (legislators) do not approve the federal budget by that date, there will be no  money left to fund government operations. So there is a Government Shutdown.  If there is no money to run something, it must close. However, with a government shutdown in the United States, not everything stops. 

A government shutdown does not mean that all federal government activities cease. Only those that lawmakers deem “non-essential” will temporarily close. 

Government lays off workers 

The authorities are giving public leave (federal workers) working in non-essential sectors of the federal government. The dictionary says that to give leave means to allow an employee to take time off from work. That’s a good way to say “fire” a worker. In other words,  civil servants do not work and receive no income.  

If the government gives you leave, it means they  sent you home without pay. However, when you start working again, the government will pay you back the wages that the government has frozen.

What stops during the government shutdown? 

When it comes to a full shutdown rather than a partial shutdown, more than thirty-eight different federal agencies will close. Here is a list of some of them (source: Wikipedia):

American Battle Monuments Commission 

This commission operates 24 cemeteries for US service members and women who died in action abroad. All  cemeteries are overseas. 

Conference 

All congressional legislators receive their salaries during the government shutdown, as does the president. Federal employees say it’s ironic that the people with steady jobs and wages during the shutdown – legislators – decide the jobs and earnings of all other federal employees. . 

Congressional legislators decide what happens to  federal employees who work at the Capitol. In other words, they decide who gets the leave and who continues to work during the layoff. 

Department of Agriculture 

Parts of the Department of Agriculture have closed, while others have continued. For example, grain, poultry and meat inspectors continue to work because their work is “essential”. 

On the other hand, the offices that publish statistical and economic reports are closed. Even the offices that provide data on prices and availability of agricultural products are closed. For those who work in the commodity markets, these reports are extremely important. 

Commodity markets are where traders buy and sell  agricultural products and primary raw materials (as opposed to manufactured goods). For example, wheat, corn and coffee are commodities. We can say “commodity market” or “commodity market”. 

Commercial Department  

When the government shut down in 2013,  40,234 of the Commerce Department’s 46,420 employees were laid off.

Department of Education 

During the 2013 shutdown, 3,983 of the Department of Education’s 4,225 employees were sent home without pay (on leave). Authorities continue to pay student loans and Pell grants. However, many recipients have experienced delays.  

Department of Health and Human Services (HHS) 

In 2013, HHS laid off 52% of  employees. Even the Centers for Disease Control and Prevention, an “essential” service, cannot conduct thorough investigations. In some cases, these are investigations aimed at determining the cause of epidemics occurring simultaneously in several States. 

The FDA has laid off 45% of its 14,779 workers. FDA stands for  Food and Drug Administration. It is the country’s regulatory agency in charge of food, drugs, medical devices, tobacco products, and cosmetics. 

Department of Homeland Security 

About 86% of the 231,000 workers in the department continued to work during the 2013 government shutdown.

Department Of Justice 

85% of Justice Department employees continued to work during the 2013 shutdown. Law enforcement  continued to work. On the other hand, work on civil proceedings has stopped. 

About 70% of  immigration courts nationwide, including judges, have been fired. 

Department of Labor 

The Department of Labor  continued to pay workers’ compensation  and unemployment insurance claims during the 2013 shutdown.  The Labor Department has laid off 82% of its 16,304 employees. 

Other government offices 

Workers at the Department of Veterans Affairs,  Environmental Protection Agency,  Federal Communications Commission,  General Services Administration, and intelligence agencies have laid off hundreds of thousands of workers.  

The Library of Congress, many other libraries, national parks and museums closed  during the 2013 shutdown. 

Government shutdown – an American thing? 

In all  other advanced economies, government shutdowns don’t happen.  In the UK, for example, the ruling party will have to hold a general election if  the budget is not passed. Failure to pass the budget by Parliament is tantamount to a vote of  no confidence. Voters will punish the ruling party. 

A government shutdown is a very  American thing. 

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The post What is a government shutdown in the USA? Definition and examples first appeared on Businessely.com.



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