Understanding U.S. Federal Government Shutdowns: Causes, Impact & History

A federal government shutdown occurs when Congress fails to pass the necessary spending bills or continuing resolutions to fund government operations and agencies. During a shutdown, non-essential federal services are halted, many government employees are furloughed without pay, and only essential services—such as national security, law enforcement, and air traffic control—continue to operate. The shutdown continues until new funding legislation is approved by both chambers of Congress and signed by the President.

Historically, U.S. government shutdowns have stemmed from political disagreements over budget priorities, policy riders, or debt limits. Major shutdowns include those in 1995–96, 2013, and 2018–19—the last of which lasted 35 days, the longest in U.S. history. Shutdowns can disrupt the economy, delay federal benefits, and erode public confidence in government efficiency.