The U.S. government narrowly avoided a prolonged government shutdown after the Senate approved a funding bill in the early morning hours of Saturday, sending it to President Biden’s desk for his signature. This Senate approval came after the House also overwhelmingly approved the measure on Friday night, just ahead of the midnight deadline.
The fight over a federal spending bill went down to the wire, with the looming deadline for a government shutdown that could have begun at 12:01 a.m. on Saturday, December 21. This raised questions about what types of services and payments could be impacted if funding lapsed just days before the holidays.
The threat of a shutdown stemmed from controversy over a spending bill that would have extended funding through March 14. However, this bill fell apart after some Republicans, including President-elect Donald Trump and Elon Musk, objected to billions of dollars in spending that had been added to the bill. A revised version also failed on Thursday before another attempt on Friday passed in the House.
Without congressional approval for new spending, federal agencies are typically barred from doling out money, with some exceptions for activities to protect life and property. Agencies must make decisions about which workers will stay on the job, leading to varying impacts on government operations.
Shutdowns can be disruptive, causing delays in processing applications for passports, small business loans, or government benefits. Each week of a federal shutdown costs the U.S. economy $6 billion due to delays in government spending and a reduction in pay for furloughed workers.
If the federal government shuts down, each federal agency will determine its own plan for how to handle a shutdown, with nonessential government operations ceasing. Many government workers will be furloughed, although essential services like law enforcement and air traffic control will continue.
Essential government agencies like the FBI, Border Patrol, and Coast Guard would remain open, but federal workers would not get paid until Congress approves a new spending bill. After the shutdown ends, workers will receive retroactive paychecks covering the days they were furloughed or had to work without pay.
Social Security recipients and Medicare beneficiaries would continue to receive their checks and benefits, as these programs are authorized by laws that don’t require annual approval. However, Social Security’s administrative budget is discretionary and could be impacted in a shutdown, affecting services like benefit verification and new applications for benefits.
Amidst holiday travel, a shutdown could impact air travel with TSA agents and air traffic controllers required to work without pay. The U.S. Postal Service would continue operations, and mail would still be delivered. Active-duty military members and federal law enforcement would continue to work without pay, while most civilian personnel would be furloughed.
Many services would be put on hold or delayed in a shutdown, including environmental and food inspections, national park operations, and some services offered by the IRS. The impact on the economy could be significant, with each week of a shutdown costing $6 billion.
The odds of a government shutdown have increased, but a protracted shutdown looks unlikely as efforts continue to pass a spending measure before the deadline. The potential impact on the U.S. economy and government services underscores the importance of reaching a resolution to avoid disruptions and hardships for workers and the public.
