US President Donald Trump has resumed his presidency in January, and significant changes have occurred in the past eight months. However, the looming threat of government shutdowns remains constant.
Recently, Democratic and Republican lawmakers failed to pass a temporary federal funding bill to avert a government shutdown, resulting in the official shutdown at 12:01 am Washington time (4:01 GMT). This marks the first shutdown during Trump’s current term, following two shutdowns in his previous term, including the longest one in US history from December 22, 2018, to January 25, 2019.
Discussions between Trump and Congressional leaders from both parties at the White House on Monday did not yield a resolution. Democrats aimed to restore health care funding and reverse Medicaid cuts, indicating the likelihood of a shutdown as Vice President JD Vance remarked, “I think we’re headed to a shutdown.”
A government shutdown occurs when there is no agreement on the annual budget, affecting discretionary spending that requires annual appropriation. This situation halts the payment of federal employees and contractors, impacting different government sectors in various ways.
During past shutdowns, some agencies remained operational with approved budgets, while others faced complete closures due to the absence of signed budget legislation. Essential services and mandatory spending programs, such as Social Security and Medicare, continue unaffected during a shutdown. However, nonessential government agencies and programs close due to the lack of annual funding.
Federal employees bear the brunt of shutdowns, with a significant number being furloughed temporarily without pay. Essential service workers continue working without compensation during this period. Departments like the Environmental Protection Agency and the Securities and Exchange Commission are likely to close, while confirmed Senate officials and elected representatives still work and receive their pay.
National parks, museums, and government agencies like NASA may partially or fully cease operations during a shutdown, leading to financial losses and work backlogs. The uncertainty of the shutdown’s duration adds to the financial strain on federal employees living paycheck to paycheck.
Government shutdowns have occurred in the past, with the longest lasting 35 days during Trump’s first term. While short shutdowns pose minimal economic impact, prolonged shutdowns like the 2018-2019 occurrence can lead to temporary economic setbacks that may not be fully recovered.