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Government Shutdown Looms: What Our Community Needs to Know as Funding Deadline Nears
Washington is once again grappling with the specter of a federal government shutdown, as lawmakers race against a looming deadline to approve new funding by Wednesday, October 1, 2025. Failure to reach a bipartisan agreement could halt non-essential government operations, impacting services and federal employees nationwide.
The current stalemate sees Republicans proposing to extend government funding at existing levels until November 21, allowing more time to finalize full-year appropriations bills. Democrats have countered with an offer to keep the government open through October, but have attached healthcare provisions and restrictions on the President’s ability to withhold funding—terms largely rejected by most Republicans.
With both sides firmly entrenched, the likelihood of a shutdown starting on the deadline appears to be increasing. Congressional leaders are scheduled to meet with President Trump at the White House on Monday to seek a resolution.
This wouldn’t be the first time the nation has faced such a crisis; there have been 14 shutdowns since 1980, with the most recent, in 2018-2019, lasting 34 days.
What Constitutes a Government Shutdown?
A government shutdown occurs when Congress fails to pass legislation authorizing spending for federal agencies. The federal fiscal year begins on October 1, and most agencies require annual appropriations bills—often grouped into a large “omnibus” bill—to fund their operations. Without these approvals, agencies cannot spend money.
Ahead of this year’s deadline, none of the 12 necessary appropriations bills have been enacted. While some agencies, notably the Defense Department and Department of Homeland Security, received funding earlier this year through a separate bill, many others remain reliant on new appropriations. Lawmakers often use “continuing resolutions” to temporarily extend funding, buying more time for negotiations.
The Antideficiency Act, a statute dating back to 1870, dictates that government agencies must cease operations—with specific exceptions—if funding is not authorized by Congress. This law prohibits the Treasury Department from disbursing money without legal authorization and prevents agencies from incurring financial obligations without congressional approval.
Who is Affected During a Shutdown, and How?
When a shutdown occurs, the federal government must cease all non-essential functions until funding is restored. Each agency determines which of its functions and employees are “essential” and which are not.
Essential personnel are generally those whose work involves protecting life and property, or those critical to constitutional processes (like the President and members of Congress). This includes active-duty military, many federal law enforcement officers, air traffic controllers, and Transportation Security Administration (TSA) officers.
A significant departure from previous shutdowns involves a directive from the Office of Budget and Management, advising federal agencies to consider permanent mass layoffs for programs or projects lacking alternative funding sources after October 1. These potential layoffs would be in addition to traditional furloughs.
Crucially, whether an employee is deemed essential or not, if their salary depends on annual appropriations, they will not be paid during a shutdown. While essential employees continue working without immediate pay, non-essential employees are typically furloughed. A 2019 law ensures that all furloughed employees receive back pay once a shutdown concludes.
Previous shutdowns have proven costly, with a 2019 Senate report estimating that the 2013, 2018, and 2019 shutdowns cost taxpayers nearly $4 billion, primarily in back pay for furloughed workers.
What Stays Open and What Closes?
During a shutdown, certain critical services continue:
- Entitlement Programs: Social Security, Medicare, and Medicaid benefit payments are funded through permanent appropriations and will continue.
However, the administrative agencies overseeing these programs may face furloughs, potentially leading to delays in enrolling new beneficiaries or other customer service interruptions.
- **U.S.
Postal Service:** Operations continue as the USPS is self-funded.
However, many other services could be disrupted or halted:
- National Parks: Past shutdowns have seen parks either close entirely (2013) or remain open with minimal staffing, leading to vandalism and reduced visitor services (2018-2019).
- Travel: While air traffic controllers and TSA officers are essential, widespread protests over delayed pay could disrupt travel plans.
- Regulatory and Enforcement Agencies: Furloughs at agencies like the SEC, Federal Trade Commission, and Consumer Product Safety Commission can hamper investigations and enforcement actions.
- Judicial Services: The Justice Department, for instance, canceled 60,000 immigration hearings during the 2018-2019 shutdown.
For many members of the public, the immediate impact of a short shutdown might be minimal, primarily affecting those with direct interactions with federal agencies or plans involving federal sites. However, the longer a shutdown lasts, the more pronounced and widespread its effects become, potentially exacerbated by the administration’s consideration of mass layoffs.
A Look Back at Previous Shutdowns
Before the early 1980s, the government often continued operating during funding lapses. However, a series of Attorney General opinions changed this, deeming it illegal to spend money without congressional approval.
Since then, the U.S. has experienced 14 shutdowns, most lasting only a few days. The longest was the 2018-2019 partial shutdown, which stretched for 34 days, costing the economy an estimated $11 billion and impacting approximately 800,000 federal employees. This shutdown stemmed from a standoff over President Trump’s demand for $5.7 billion for a border wall, a demand he ultimately conceded after weeks of refusing to reopen the government.
Prior to that, the record for the longest shutdown was 21 days in 1995-1996, during a budget battle between President Bill Clinton and Republican House Speaker Newt Gingrich.