All government functions cost money, and it is Congress’ job to allocate that funding. When the appropriations tap runs dry, the government shuts down, depriving Americans of important public services and preventing federal workers from earning their paychecks.
A government shutdown also harms the economy, reducing economic output and lowering consumer confidence. A shutdown would delay passports, loans for small businesses and federal benefits, close national parks and museums and halt food-safety inspections. It would also disrupt the flow of Social Security, Medicare and veterans benefits, impose delays at airports and stop some military operations. Moreover, it would add costs to the national debt through missed interest payments on Treasury bills.
In a shutdown, most non-essential activities stop and employees are furloughed without pay until appropriations are reauthorized. Programs deemed essential for public safety or national security, such as inpatient medical care, air traffic control, disaster aid, border protection and power grid maintenance, continue, although they may face disruptions. Historically, excepted employees have been paid once appropriations reopen, but that does not guarantee it in this situation. Contractors are generally not paid during a shutdown, but contracts that involve multiyear appropriations or cross fiscal years (so-called “severable services”) may continue. The VA, for example, could collect copayments and reopen the VA crisis line, but it would not be able to provide suicide prevention grants to community providers or conduct research on how to treat veterans with mental illness or those who are homeless.