Congress is facing yet another possible government shutdown, as it returns this week for one last burst of activity before it wraps up the session and the year.
The key deadline to avoid a shutdown is Dec. 20, NBC News reports. Both parties need to reach an agreement on a full funding deal -- or, the only realistic solution at this point, a continuing resolution (CR) that would temporarily fund the government into early 2025.
The text of that CR was released Tuesday, just days before the deadline — but demands from President-elect Donald Trump threw the plan into jeopardy and sent Congressional leaders scrambling to put together another agreement.
Without some kind of funding approved before the deadline, a shutdown would leave millions of federal workers without paychecks. It's the second time this year that the federal government has played with a deadline that, if missed, would slash services and send workers home.
We've got the news you need to know to start your day. Sign up for the First & 4Most morning newsletter — delivered to your inbox daily. >Sign up here.
What to know about government shutdowns
The effects of a government shutdown would be felt around the country. Nearly 2 million civilian federal workers — 15% of whom are based in the D.C. area — and another 2 million military workers would face delays in getting their paychecks.
Local
Washington, D.C., Maryland and Virginia local news, events and information
When the government shut down for 34 days in late 2018 and early 2019, federal workers lined up at food banks.
The prospect of a shutdown also concerns thousands of federal contractors and people whose work is connected to the federal government, such as those who work for restaurants, food trucks and in tourism.
Here are answers to some of the most-asked questions about the possible government shutdown.
When would the government shut down?
Currently, the government is funded through midnight on Dec. 20, 2024.
Without a new funding plan, a shutdown will take effect at 12:01 a.m. on Saturday, Dec. 21, 2024.
The length of any government shutdown would depend on how long it takes Congress to pass funding bills that the president is willing to sign.
Congress previously passed a stopgap funding bill back in September, before Oct. 1, which was the last deadline to fund the government or face a shutdown.
If this new CR is passed, it would prevent a shutdown before Christmas and temporarily fund the government through March 14, 2025.
Why would the government shut down?
A shutdown happens when Congress fails to approve the funding bills, called appropriations bills, that promise money to different parts of the federal government so they can function.
Lawmakers are supposed to pass 12 different spending bills to fund agencies across the government, and those bills then need to be signed by the president.
So far, the House has passed five of the required appropriations bills and the Senate has passed zero. None of the funding plans have passed both chambers.
To keep the government operating during this time-consuming process, Congress sometimes resorts to passing a temporary extension, called a continuing resolution or CR. The CR usually funds government agencies at their previous levels for a set amount of time.
The extension buys more time for Congress to negotiate what goes into the new appropriations bills.
What happens during a government shutdown?
Many government functions would be severely curtailed. Social Security checks would still go out, but federal agencies would stop all actions deemed non-essential.
Millions of federal employees, including members of the military, would not receive paychecks. Nearly 60% of federal workers are stationed in the departments of Defense, Veterans Affairs and Homeland Security.
Federal workers are stationed in all 50 states and have direct interaction with taxpayers — from Transportation Security Administration agents who operate security at airports to Postal Service workers who deliver mail. Some federal offices would also have to close or face shortened hours during a shutdown. Employees deemed essential, such as air traffic controllers and law enforcement officers, still would have to report to work.
Leading up to the near shutdown in October 2023, a union president at Reagan National Airport said she feared the shutdown posed a safety risk affecting Transportation Security Administration workers.
“I honestly believe it will be a public safety issue to work without a paycheck. High stress. It would affect the workers mentally,” said Alicia Dolforde, AFGE president of Local 1442. She represents nearly 700 TSA workers at the airport.
Government services: People applying for government services like clinical trials, firearm permits and passports could see delays.
Museums and the National Zoo: During past shutdowns, Smithsonian museums and the zoo have had to close because they depend on government funding.
However, it's possible they could stay open, at least initially. The Smithsonian said in September 2023 that it would use “prior-year funds” to keep museums and the zoo open to the public at least for a few days before the last possible shutdown. It's unclear if that would remain the case this time around.
Social Security and SSI: Social Security and Supplemental Security Income recipients would continue to receive payments, as it's considered a mandatory program not funded by short-term appropriations bills. But response times for people with issues could be delayed due to furloughs.
“If you have a question about Social Security, you may not be able to find anybody to answer your questions,” Nielsen said. “But the everyday transactions of sending checks out will still continue.”
According to a recent contingency plan from the Social Security Administration, the agency would cease non-critical actions and those "not directly related to the accurate and timely payment of benefits.” The issuance of new social security cards and replacements would continue.
Student loans: Shutdown or not, borrowers’ payments will still be due. For the most part, loan servicers would be able to continue to process payments regularly — but there could be delays for those who need to consult with or seek help from the Education Department due to the potential of agency furloughs.
Students applying for federal aid during a shutdown can expect similar delays because of this. Officials have pointed to potential disruptions to processing FAFSA applications, disbursing Pell Grants and pursuing public loan forgiveness, for example.
Medicare and Medicaid: Medicare and Medicaid benefits would continue — as both are mandatory programs funded separately from annual appropriations. That means that patients should still be able to see their doctors and have medical bills paid.
But, similar to Social Security, there could be delays and disruptions to customer service due to furloughs. According to contingency details published by the Health and Human Services Department last week, about half of the Centers for Medicare and Medicaid Services is set to be furloughed in the event of a lapse of appropriations.
Beyond Medicare and Medicaid, health care services for veterans are set to continue in the event of a shutdown.
Mail service: The United States Postal Service would not be affected by a government shutdown. The Postal Service doesn't rely on taxpayer dollars because it generally gets its funding through the sales of products and services.
The economy: Lawmakers warned last September that a shutdown could rattle financial markets. Goldman Sachs estimated that a shutdown would reduce economic growth by 0.2% every week it lasted, but growth would then bounce back after the government reopens.
Others said the disruption in government services would have far-reaching impacts because it shakes confidence in the government to fulfill its basic duties. The U.S. Chamber of Commerce warned, “A well-functioning economy requires a functioning government.”
Air travel: The nation’s air travel system is expected to operate relatively normally during a shutdown. Air traffic controllers and TSA screeners are deemed essential workers — however, those people won’t be paid until the shutdown ends, and TSA lines could grow longer if enough screeners stay home.
Transportation Secretary Pete Buttigieg said in September 2023 that air travel would remain safe in a shutdown, but that the training of new air traffic controllers would stop and 1,000 trainees would be furloughed.
The travel sector could lose $140 million daily in a shutdown, according to the U.S. Travel Industry Association.
Passports and visas: The processing of passports and visas would continue in a shutdown “as the situation permits,” according to guidance that the State Department gave employees last September. The department said consulates in the U.S. and abroad would stay open “as long as there are sufficient fees to support operations,” but passport work could stop if the building where the work is done gets shuttered.
The time it takes to get a passport or visa already is much longer than before the pandemic. Most Customs and Border Protection agents are also considered essential and would be expected to work at airports and border crossings.
The president, Congress and the judiciary: The president and members of Congress would continue to work and get paid. However, any members of their staff who are not deemed essential would be furloughed.
The Supreme Court would be unaffected by a short shutdown because it can draw on a pot of money provided by court fees, including charges for filing lawsuits and other documents, court spokeswoman Patricia McCabe said before the previous potential shutdown.
The justices and all federal judges would continue to be paid because of the constitutional prohibition on reducing judges’ pay during their tenure, according to the Congressional Research Service.
Federally funded agencies that are not under the District's control do "provide critical criminal and civil justice services to the District," Del. Eleanor Holmes Norton said in September 2023. They have been "adversely affected by federal government shutdowns, including canceled services and furloughed employees."
Metro: Back in September 2023, Metro General Manager Randy Clarke said there would be no major changes to Metro service if there was a shutdown, but some changes could be made based on data from stations. For example, some Metro entrances could be closed in cases where not enough riders are coming through.
A lot of riders are federal workers. Ridership and fare payments could fall as the transit agency continues the long rebound from COVID-related losses.
Other transit systems, including VRE, said they would weigh how they would respond to a shutdown.
Tourism: Businesses closely connected to the federal government, such as tourist services around national parks, could see disruptions and downturns. The travel sector could lose $140 million daily in a shutdown, according to the U.S. Travel Industry Association.
During the last government shutdown in late 2018 and early 2019, a long list of D.C. institutions closed, including:
- Smithsonian museums
- The National Zoo
- The National Gallery of Art
- The National Archives
- Ford’s Theatre
- The White House Visitor Center
Do federal employees get paid during a shutdown?
When no funding legislation is enacted, federal agencies have to stop all nonessential work and will not send paychecks as long as the shutdown lasts.
Although employees deemed essential such as air traffic controllers and law enforcement officers still have to report to work, other federal employees are furloughed. But their paychecks will not show up until after a funding deal is struck. Under a 2019 law, those same workers are slated to receive backpay once the funding impasse is resolved.
However, after the lengthy shutdown that began in 2018, it took a long time for those checks to come, according to Alicia Dolforde, who represents hundreds of TSA workers at Reagan National Airport.
"It was very stressful. It was high-stress. We were sent a letter home for creditors, to give to our creditors," Dolforde said. It took over two months."
What’s a furlough and who is affected by a government shutdown?
"A furlough is the placing of an employee in a temporary nonduty, nonpay status because of lack of work or funds, or other nondisciplinary reasons," the Office of Personnel Management (OPM) says in its Guidance for Shutdown Furloughs.
When workers are put on leave because there isn't money budgeted for their job, they're on what's called shutdown furlough. Those employees won't get paychecks during the shutdown. Federal employees can expect to get backpay once the government reopens.
Employees who are "excepted" may continue to work — but their pay may be delayed. Excepted employees "are performing tasks that, by law, are allowed to continue during a lapse in appropriations," OPM said. Examples include tasks related to protecting human life or property.
Employees who are "exempt from furlough" are those whose jobs aren't funded by annual appropriations. "Employees performing those functions will generally continue to be governed by the normal pay, leave, and other civil service rules."
Contractors who work with the federal government could also be affected: They might be barred from accessing closed government facilities or unable to get direction from agencies they're working with, Washington Business Journal reported. Federal agencies wouldn't be able to award to modify contracts. Late payments, stopped work and other challenges could lead to contractors getting furloughed, and layoffs aren't out of the question.
Contractors are not guaranteed back pay like workers employed directly by the federal government are, the journal said.
How can federal workers collect unemployment?
Most federal workers and contractors would be eligible for unemployment.
The most important thing to know about unemployment is that you file in the jurisdiction where you work, not where you live. Even if you’ve worked from home since the pandemic hit, you file where your office is located. That means most people in the D.C. area will file in D.C., even if they live in Maryland or Virginia.
The director of D.C. Department of Employment Services, Unique Morris-Hughes, recommended visiting the department’s website early.
“The day you're eligible to apply is the day the government shuts down, and when the government is officially unfunded, that's when people can start submitting unemployment insurance applications. To prepare in advance of this, I recommend visiting the website, checking the eligibility criteria,” she said.
Benefits vary by jurisdiction. The maximum weekly benefits are $444 in D.C., $430 in Maryland and $378 in Virginia.
In the past, the D.C. Department of Employment Services has had to prepare to receive possible tidal waves of unemployment applications, the director said. They’re seeking to avoid problems seen during the height of the pandemic.
“We’ve learned a whole lot of lessons since the pandemic, and, let me tell you, the District of Columbia is prepared and ready for a potential government shutdown. We have staff, we have call center staff that's ready to go,” she said in September 2023.
When was the last government shutdown?
The last government shutdown ran from Dec. 21, 2018, to Jan. 25, 2019. At 34 days, it was the longest government shutdown in United States history.
In the first 25 days of 2019, the D.C. economy lost about $1.6 billion in economic activity due to the shutdown, a George Mason University economist told WAMU. A large portion of that would eventually be paid out in checks to federal workers, but other losses, such as restaurants that missed out on selling food, couldn't be recouped.
Why is this happening again?
If this all feels familiar, it's because it's happened multiple times in the past decade, and every few months since September 2023.
Congress narrowly avoided a government shutdown by passing a 47-day continuing resolution just three hours before the deadline on Sept. 30, 2023.
Then, in Nov. 2023, Congress passed another continuing resolution, funding the government through Feb. 2. 2024.
In January of this year, Congress passed another continuing resolution that funded the government through March.
Finally, on March 23, Congress fully funded the government for the 2024 fiscal year.
However, the deadline for the appropriations bills for the 2025 fiscal year was Oct. 1. Congress once again came within days of the deadline, passing a continuing resolution on Sept. 26 to fund the government until Dec. 20 -- the current standstill.
CNBC and NBC News contributed to this report.
