{"id":24655,"date":"2023-08-02T18:05:16","date_gmt":"2023-08-02T18:05:16","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2023\/08\/02\/what-happens-when-the-government-shuts-down-according-to-brookings\/"},"modified":"2026-08-08T05:02:24","modified_gmt":"2026-08-08T05:02:24","slug":"what-happens-when-the-government-shuts-down-according-to-brookings","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/congress\/2023\/08\/02\/what-happens-when-the-government-shuts-down-according-to-brookings\/","title":{"rendered":"What happens when the government shuts down, according to Brookings"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Brookings Institute\u2019s assessment of Congress\u2019 ability to pass a budget by Sept. 30 is grim.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cCongress appears to <a href=\"https:\/\/www.npr.org\/2023\/07\/28\/1190242535\/house-and-senate-on-a-collision-course-toward-a-government-shutdown-again\">be on track<\/a> to trigger a government shutdown on Oct. 1, 2023, because it is not expected to pass the 12 appropriations bills that fund government operations before the start of the new fiscal year,\u201d the nonprofit public policy group said in<a href=\"https:\/\/www.brookings.edu\/articles\/what-is-a-government-shutdown-and-why-are-we-likely-to-have-another-one\/\" target=\"_blank\"> a report published July 31.<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That in itself may not be surprising \u2014 there have been more than 20 shutdowns and funding gaps since 1976, and Congress is almost always late on its appropriations deadlines. The result is a near annual threat of government operations being pared down without a fresh influx of money.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cUnder the&nbsp;<a href=\"https:\/\/www.gao.gov\/legal\/appropriations-law\/resources\">Antideficiency Act<\/a>&nbsp;(initially passed in 1884 and amended in 1950), federal agencies cannot spend or obligate any money without an appropriation (or other approval) from Congress,\u201d Brookings says. \u201cWhen Congress fails to enact the&nbsp;<a href=\"https:\/\/www.senate.gov\/reference\/reference_index_subjects\/Appropriations_vrd.htm\">12 annual appropriation bills<\/a>, federal agencies must cease all non-essential functions until Congress acts. This is known as a government shutdown.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That means something for almost everyone: the public, industry and, of course, government workers. And typically, agencies have little notice when it comes time to implement a shutdown furlough, per the Office of Personnel Management\u2019s guidance.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/federaltimes\/management\/pay-benefits\/2023\/08\/02\/bidens-proposed-52-federal-pay-raise-is-safe-for-now\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"281\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/GettyImages-1146526889.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Biden\u2019s proposed 5.2% annual federal pay raise safe \u2014 for now<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Analysis from the Brookings Institute this week predicts that a government shutdown is likely given the short amount of time left in fiscal 2023.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">It\u2019s partly why agencies have contingency plans on file with the Office of Management and Budget, detailing how each will proceed in the event of a lapse in appropriations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">During a shutdown, employees are told not to come to work and those who are deemed essential workers continue working without pay until Congress takes action.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cBenefits such as Social Security and Medicare continue to flow because they are authorized by Congress in laws that do not need annual approval (although the services offered by Social Security benefit offices may be limited during a shutdown),\u201d says Brookings. \u201cIn addition, the Treasury can continue to pay interest on U.S. Treasury debt on time.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What makes a shutdown likely this year, according to Brookings, is added complications by the <a href=\"https:\/\/crsreports.congress.gov\/product\/pdf\/IN\/IN12183\">Fiscal Responsibility Act<\/a>, which \u201cset limits on annual appropriated spending\u201d for defense and nondefense next year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWhen the House and Senate pass different bills, the next step is a conference committee at which the two chambers are supposed to forge a compromise, which goes to a vote in each chamber before going to the president,\u201d according to the report. \u201cThat is likely to be very contentious this year\u2014and there is not much time.\u201d<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/federaltimes\/congress\/2022\/12\/06\/what-happens-to-federal-pay-raise-if-congress-fails-to-pass-a-budget\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP22340612006847.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">How do government shutdowns affect federal employee pay raises?<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">President Biden\u2019s proposed pay raise included an across-the-board base pay increase of 4.1% and a locality pay average increase of 0.5%.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">There are only a few weeks in between when the House and Senate return and when the fiscal year ends, and House Republicans have indicated they want to spend less than even what is set by the debt ceiling bill, \u201cmuch to the consternation of Democrats and the <a href=\"https:\/\/www.whitehouse.gov\/wp-content\/uploads\/2023\/07\/SAP-H.R.-4368.pdf\">White House, which says<\/a> President Biden would veto the appropriations bills that are pending in the House.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The House bills also include contentious provisions on abortion, contraception, regulation of tobacco, and healthcare that are not likely to gain support in the Senate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The act also disincentivizes passing a temporary stop-gap measure extending beyond December 2023 by further cutting defense spending.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cA continuing resolution this fall could avoid a shutdown\u2014if the House can approve one,\u201d Brookings says.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Historically, there have been <a href=\"https:\/\/www.crfb.org\/papers\/qa-everything-you-should-know-about-government-shutdowns\">four shutdowns<\/a> in which operations were affected for more than a single business day, according to the report. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Fiscal Responsibility Act is adding complications to appropriations debates.<\/p>\n","protected":false},"author":7,"featured_media":51894,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":38,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[65,38,31,15,33,9],"tags":[],"coauthors":[3269],"class_list":["post-24655","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-budget","category-congress","category-home","category-management","category-newsletters","category-federal-oversight"],"acf":{"subheadline":"","legacy_arc_id":"B6NEUXDOQFD2DIBISAFSWA3DAU","arc_canonical_url":"\/federal-oversight\/congress\/2023\/08\/02\/what-happens-when-the-government-shuts-down-according-to-brookings\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What happens when the government shuts down, according to Brookings - Federal Times<\/title>\n<meta name=\"description\" content=\"The Fiscal Responsibility Act is adding complications to appropriations debates.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What happens when the government shuts down, according to Brookings\" \/>\n<meta property=\"og:description\" content=\"The Fiscal Responsibility Act is adding complications to appropriations debates.\" \/>\n<meta property=\"og:url\" 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