The potential for a government shutdown is looming, and it has the potential to impact hundreds of thousands of federal employees. These employees are expected to work during a shutdown but will not receive their pay until after the shutdown is lifted. However, they are guaranteed backpay for their work.[0] In addition, many employees are at risk of being furloughed, meaning they would not be allowed to work, but they would still receive back pay thanks to legislation passed in 2019.[1]
If a shutdown were to occur, federal employees would be the first to feel the effects.[2] Nearly 4 million federal workers could be left without a paycheck until the shutdown ends. This includes active-duty troops, who would continue to work without pay until the shutdown is over.[3] Since 1976, there have been 20 gaps in federal funding, resulting in government shutdowns.[3]
During a shutdown, the government is unable to spend money, with some exceptions.[0] This means that federal employees are expected to work without payment until the shutdown is resolved. Essential services will continue to operate, but resources will be strained.[0]
In 2019, a five-week shutdown left nearly 800,000 federal workers furloughed or working without pay. It also affected a significant number of contractor employees, with an estimated 10,000 companies with government contracts being impacted.[1] Contractors often do not receive back pay after a shutdown ends, unlike full-time federal workers.[4]
The potential for a government shutdown in the future is a cause for concern, as it could have significant impacts on Americans. Air travel, public health, and the economy could all be affected.[5] Millions of federal workers would face the possibility of being furloughed, and contractors would also see their pay disrupted, potentially leading to layoffs. This would have a ripple effect on businesses that rely on the spending of federal workers and contractors.
The impact of a government shutdown is far-reaching. It not only affects federal workers but also has implications for daily life and various sectors of the economy. Federal employees would eventually receive back pay once the shutdown ends, but contractors who are impacted by the shutdown would not. The travel industry, in particular, could suffer significant losses during a shutdown, with estimates suggesting it could lose up to $140 million per day.
The government's fiscal year ends on September 30, and if an agreement is not reached in Congress, a shutdown will occur.[0] This would lead to financial hardships for federal employees, their families, and those impacted by their work. The government shutdown has happened multiple times in the past, with the most recent and longest shutdown lasting 34 days in 2018-2019.[6] It ended after major delays in East Coast airports due to unpaid air traffic controllers.[0]
Federal employees who work in New England, including Massachusetts, could face halted paychecks during a shutdown.[7] While civil servants are guaranteed backpay, they will not receive paychecks until Congress passes funding. In addition to the 4 million federal workers who would not get paid during a potential shutdown, millions of contractors would also face pay disruptions and potential layoffs.
Each federal agency has its own contingency plan for operating essential services during a shutdown.[6] Key roles such as air traffic controllers, border security agents, military personnel, and the Postal Service would continue to work, although their paychecks may be delayed.[6] Non-essential services would be paused, and an estimated 850,000 federal workers were furloughed during the 2018-2019 shutdown.
The potential for a government shutdown has serious economic implications. The U.S. travel industry alone could lose up to $140 million per day during a shutdown. The government shutdown in 2018-2019 cost the nation's economy $11 billion, according to the Congressional Budget Office.[8] The U.S. Travel Association warns that failure to enact a stop-gap funding bill would threaten livelihoods and jobs across the economy.
Despite the potential for a shutdown, certain programs like Social Security, Medicare, and Medicaid would not be impacted.[2] These programs have separate funding and would continue to provide assistance to recipients. However, federal contractors impacted by the shutdown would not receive back pay.
Overall, a government shutdown would have far-reaching consequences for federal employees, businesses, and the economy. It is crucial for Congress to reach an agreement to avoid a shutdown and prevent the financial hardships that come with it.[0]
0. “A government shutdown could be imminent. What does that mean for Philly?” The Philadelphia Inquirer, 22 Sep. 2023, https://www.inquirer.com/politics/nation/us-government-shutdown-2023-national-parks-liberty-bell-20230922.html
1. “How contractors are bracing for a federal government shutdown” Federal Times, 19 Sep. 2023, https://www.federaltimes.com/management/career/2023/09/19/how-contractors-are-bracing-for-a-federal-government-shutdown/
2. “How could a possible government shutdown affect you?” CBS News, 26 Sep. 2023, https://www.cbsnews.com/chicago/news/how-could-possible-government-shutdown-affect-you/
3. “Government Shutdown Would Disrupt Employers and Workers” SHRM, 22 Sep. 2023, https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-law/pages/federal-government-shutdown-looms-2023.aspx
4. “Pay for millions of federal workers is at risk with a looming government shutdown” NBC News, 24 Sep. 2023, https://www.nbcnews.com/politics/congress/government-shutdown-federal-workers-lose-pay-military-rcna116891
5. “Does Mail Stop During Government Shutdown? What to Know About USPS” Newsweek, 25 Sep. 2023, https://www.newsweek.com/does-mail-stop-government-shutdown-what-know-usps-1829658
6. “Congress Scrambling to Avoid Government Shutdown” The Ticker Tape, 22 Sep. 2023, https://tickertape.tdameritrade.com/market-news/congress-scrambling-to-avoid-government-shutdown–19672
7. “A federal government shutdown would have wide-ranging impacts in New England” The Boston Globe, 25 Sep. 2023, https://www.bostonglobe.com/2023/09/25/nation/federal-government-shutdown-would-have-wide-ranging-impacts-new-england
8. “A Government Shutdown Would Cost U.S. Travel Economy Nearly $1 Billion Per Week” Forbes, 25 Sep. 2023, https://www.forbes.com/sites/suzannerowankelleher/2023/09/25/a-government-shutdown-would-cost-us-travel-economy-nearly-1-billion-per-week
