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In U.S. politics, a government shutdown is the process the Executive Branch must enter into when the Congress creates a "funding gap" by choosing not to or failing to pass legislation funding government operations and agencies, or, after the Congress passes a bill to fund the government and sends it to the President, the President vetoes that bill. If interim or full-year appropriations are not enacted into law, the United States Constitution and the Antideficiency Act require that the federal government begin a "shutdown" of the affected activities. If the funding gap lasts long enough that shutdown plans must be enacted, the law requires the furlough of non-essential personnel and curtailment of agency activities and services. Programs that are funded by laws other than annual appropriations acts (like Social Security) also may be affected by a funding gap, if program execution relies on activities that receive annually appropriated funding. Although the term government shutdown usually refers to what occurs at the federal level, shutdowns have also occurred at the state/territorial and local levels of government.
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During Gerald Ford's presidency, one funding gap occurred, lasting 10 days. Under the Carter administrations, funding gaps caused 5 partial shutdowns that affected only the departments of Labor and Health, Education, and Welfare. These lasted from 8 to 18 days and the primary issue of dispute was federal funding for abortion. During the Reagan administration, there were funding gaps with technical shutdowns lasting less than 48 hours or over weekends while spending measures were negotiated rendering them to be of negligible effect. A funding gap during the George H. W. Bush administration also caused a weekend shutdown, resolved late the following Monday.
During the Clinton administration, there were two full government shutdowns during 1995 and 1996 lasting 5 and 21 days respectively, both the longest and most severe to that date. These shutdowns led to massive furloughs and significant disruption. The primary issue was the United States budget deficit.
During Barack Obama's presidency, the United States federal government shutdown of 2013 ran from October 1 to 16, 2013. The primary issue of dispute between the Republican-controlled House of Representatives and the Democratic Senate was the Republicans' desire to delay or defund the Patient Protection and Affordable Care Act (Obamacare), signed into law in 2010. A bill to end the shutdown and fund federal agencies through January 15, 2014, passed the Senate and the House and was signed into law on October 17, 2013. Standard & Poor's, the financial ratings agency, stated on October 16 that the shutdown "to date has taken $24 billion out of the economy," and "shaved at least 0.6 percent off annualized fourth-quarter 2013 GDP growth."
Mechanism of a shutdown
Under the separation of powers created by the United States Constitution, the United States Congress has the sole power of the purse and responsibility for appropriating government funds. The appropriations bills must start in the House of Representatives and then be approved by the Senate, which upon passage of a final version by both houses then go to the President of the United States. If the President signs or ignores the bills, they become law. If the President vetoes the bills, they go back to Congress, where the veto can be overridden by a two-thirds vote. Government shutdowns tend to occur when the President and one or both of the chambers of Congress are unable to resolve disagreements over budget allocations before the existing budget cycle ends.
Following the first shutdown, many federal agencies continued to operate during a shutdown, while minimizing all nonessential operations and obligations, believing that Congress did not intend that agencies close down while waiting for the enactment of annual appropriations acts or temporary appropriations. In 1980 and 1981, however, Attorney General Benjamin Civiletti issued two opinions that more strictly interpreted the Antideficiency Act in the context of a funding gap, along with its exceptions. The opinions stated that, with some exceptions, the head of an agency could avoid violating the Act only by suspending the agency’s operations until the enactment of an appropriation. In the absence of appropriations, exceptions would be allowed only when there is some reasonable and articulable connection between the function to be performed and the safety of human life or the protection of property.
Shutdowns of the type experienced by the United States are nearly impossible in other democracies. Under the parliamentary system used in most European nations, the executive and legislative branch are not separate, with the parliament designating all executive officials, typically called "ministers". In many other non-parliamentary democracies, a strong executive branch typically has the authority to keep the government functioning even without an approved budget.
Effects
While most government shutdowns prior to the 1995–1996 shutdowns had very mild effects, a full federal government shutdown causes a large number of civilian federal employees to be furloughed. Active duty military personnel (those on Title 10 status) and employees excepted by the Antideficiency Act are not furloughed, but may not be paid as scheduled for the period of the furlough. During a government shutdown, furloughed government employees are prohibited from even checking their e-mail from home. To enforce this prohibition, many agencies require employees to return their government-issued electronic devices for the duration of the shutdown.
Economic data shows that despite the inconvenience arising from a protracted government shutdown (such as the one seen in 2013), any GDP damage or falling job market confidence that results can be managed with relative ease. For example, despite seeing payment delayed to 1.3 million workers, and 800,000 employees locked out, confidence in the job market recovered within a month of the 2013 shutdown, and GDP growth slowed only 0.1-0.2%.
However, the complete effects of a shutdown are often clouded by missing data that cannot be collected while specific government offices are closed.
Additionally, some effects of the shutdown are difficult to directly measure, and are thought to cause residual impacts in the months following a shutdown. Some examples include destroyed scientific studies, lack of investment, and deferred maintenance costs.
The exact details of which government functions stop during a shutdown is determined by the Office of Management and Budget. "Emergency personnel" continue to be employed, including the active duty (Title 10) military, federal law enforcement agents, doctors and nurses working in federal hospitals, and air traffic controllers. For the Department of Defense, at least half of the civilian workforce, and the full-time, dual-status military technicians in the US National Guard and traditional Guardsmen (those on Title 32 status) are furloughed and not paid while the shutdown is in effect. Members of Congress continue to be paid, because their pay cannot be altered except by direct law. Mail delivery is not affected as it is self-funded and the funds are not appropriated by Congress.
Shutdowns in the past have also affected the Washington, D.C., municipal government, closing schools and suspending utilities such as garbage collection.
Federal government
Since 1976, when the United States budget process was revised by the Budget Act of 1974 the United States Federal Government has had funding gaps on 18 occasions: Funding gaps did not lead to government shutdowns prior to 1980 when President Carter requested opinions from Attorney General Benjamin Civiletti on funding gaps and the Anti-Deficiency Act. His first opinion said that all government work must stop if Congress does not agree to pay for it. He later issued a second opinion that allowed essential government services to continue in the absence of a spending bill.