U.S. Federal Government Faces Potential Shutdown on Wednesday

What Happened?

Due to the lack of agreement in Congress over the terms of a new continuing resolution, the U.S. federal government faces a potential shutdown, which could begin Wednesday at midnight. Unless Congress passes a new spending bill before Wednesday, funding for most federal government agencies will run out at midnight, and the U.S. will face its twenty-first federal shutdown in the past twenty-five years. 

If the shutdown does take place, it would be the third one to occur during a Trump Presidency. A meeting between President Trump and Congressional Democrats was cancelled earlier this week due to a lack of consensus on the provisions of new budget legislation, and no new meetings have been scheduled.

Why it Matters

Federal shutdowns due to the lack of a regular budget process in Congress have become much more frequent in the past two decades. The impact of a federal shutdown falls mainly on government agencies funded by discretionary spending, which means non-entitlement programs or other federal spending already mandated by law. 

Discretionary spending equals roughly one quarter of the total federal budget, with the other seventy-five percent already being mandated by law, including social security and other entitlements. In past shutdowns, many federal agencies were forced to close their doors and halt operations since they have no operating budget, which is required by federal law. 

Social security checks will continue to go out on time, and military members will continue to be paid, as they were in the previous shutdowns. If a shutdown does occur, there will be significant disruptions to the operation of the federal government, and a shutdown would also be a major political issue for both Democrats and Republicans.

In past shutdowns, the majority of the American public blamed the party in power, which in this case happens to be the Republican Party. Shutdowns in the past have become significant election issues and have caused previous majority parties to lose their majority status in the mid-term elections. That happened to the Trump Administration during President Trump’s first term, and it also happened to former President Bill Clinton. 

There is a spending bill up for a vote on Tuesday in the U.S. Senate, if passed, it would fund federal government operations until mid-November. Its passage would prevent a shutdown, but Republicans do not have enough votes to pass the continuing resolution without at least some Democratic support. Republicans and Democrats have blamed each other for the impasse, and as of Tuesday morning, a shutdown appears likely. 

How it Affects You

While a last-minute deal or breakthrough is always possible, a federal government shutdown beginning Wednesday does look probable. While members of Congress and political pundits look for ways to blame their opponents, the real issue is the lack of a regular budget process for Congress. 

Congress has become reliant on continuing resolutions, which causes and contributes to a lot of dysfunctions in the federal government. Until a regular budget process is adhered to, shutdowns and the threat of shutdowns are likely to continue.