Government Shutdowns: Review of Past Shutdowns

In US government history, the government has faced 20 funding gaps since 1976, 10 of which have resulted in a partial or total shutdown of the US government, according to the History, Art & Archives of the US House of Representatives.

With Democrats and Republicans debating the next government funding bill and a possible hike in the US national debt limit, the next government shutdown would have started on October 1, 2021 if no agreement was reached.

Could this happen in the future? A look back at the past can reveal the answer.

How does the US government finance itself?

According to the archives, spending bills must go through both chambers of Congress (House and Senate) and be signed by the President to become law. These bills are passed annually by Congress and are expected to come into effect at the beginning of the new fiscal year, October 1st.

What if Congress doesn’t pass a spending bill to fund government?

If regular budget laws are not passed, Congress has the option of passing a rolling resolution, a temporary fix, to give members of Congress more time to pass a draft budget. If the continuation resolution expires without Congress approving new funds, parts of the federal government may experience a funding failure that leads to a closure.

How many times has the government closed?

According to the archives, the US government had 20 funding shortfalls since fiscal year 1977 (September 30, 1976). Of these, 10 resulted in government closures, which were first reported in the 1983 financial year and the last in the 2019 financial year.

Below is a list of all 20 funding gaps, including the 10 that led to government closures and the resolutions that restored funding:

How could fiscal 2022 have the next U.S. government shutdown?

On Monday, Senate Republicans blocked a bill to fund the government at current levels and suspend the debt ceiling. Republicans and Democrats are at odds over a plan to raise the debt ceiling, with Republicans saying they will not support a funding bill that includes the proposed increase.

Without a funding bill, the US government would have closed from midnight on Thursday, October 1st. If Congress has not been able to raise the national debt ceiling, The Hill says the US is well on its way to bankrupt the national debt for the first time in the nation’s history.

What would happen if the US defaulted on its national debt?

Millions of Americans would be affected if the US government couldn’t pay their bills, according to CBS News. Social security payments would not run out; US troops and federal civilian employees would not be paid. Veterans could forfeit compensation or pension payments. And millions of Americans in need of food aid would see the services stop.

CBS News also says financial services company Moody’s Analytics said a default would be a “catastrophic blow” to economic recovery. His analysisS. showed that if lawmakers were at odds after the debt ceiling was exceeded, nearly 6 million jobs would be lost, the unemployment rate would rise again to nearly 9%, and stock prices would fall nearly a third, making household wealth worth 15 trillion US dollars would annihilate.

Will the US government shut down?

Short answer, no.

According to the United States Senate, HR 5305, an ongoing government funding resolution, passed 65-35 votes in favor of the resolution in the Senate, above the 60-vote threshold required for approval. According to the bill, federal agencies will remain funded until December 3.

According to CBS News, the House of Representatives passed the rolling resolution by 254 votes to 175 for the resolution.

According to The Hill, President Biden signed a makeshift law on Thursday that will keep government funding in place until early December and officially prevent the government from closing for the time being.

With the government shutdown on hold until December 3, Congress must now respond to the looming debt ceiling situation.

If the debt ceiling is not raised, the United States will default on October 18 for the first time in the nation’s history.