A political impasse over the federal spending bill, which prompted a partial government shutdown on early Tuesday, has hit several key federal agencies and will impact the lives of millions of people in the United States.
For the uninitiated, here's a quick look at what Government Shutdown means and why you should care.
What is a Government Shutdown?
Under the U.S. Constitution, the Congress must pass laws for the federal government to spend money. And, in case the Congress cannot agree on a particular spending bill, or if the president vetoes it (read: Clinton-era shutdowns), the government has no legal authority to spend the money. It also means that several federal government agencies will have to shut down as, under the federal Anti-Deficiency Act, it can be a felony offense to spend taxpayer money that has not been apportioned from the Congress.
When did the Government Shutdown begin?
The Government Shutdown began on Tuesday, October 1. It is because the government runs on a fiscal year Oct. 1 through Sept. 30 and the current debate in the Congress over government spending is related to the new fiscal year.
How does it affect federal employees/workers?
The Government Shutdown is expected to affect anything between 800,000 to 1 million federal employees/workers (out of a total of 2.1 million federal employees/workers). Starting Tuesday, federal employees/workers can report to work but unless the work is deemed "essential," they can work for only four hours before they are furloughed.
What is deemed "essential"?
According to the Justice Department, work related to prtection of public health, safety or property are deemed "essential" and employees engaged in such work are exempted from the Government Shutdown.
How will employees know whether their work is deemed "essential"?
Each federal agency is responsible to come up with its own contingency plan and determine what type of work is deemed "essential." These plans will then be sent to the White House for review.
How does the Government Shutdown affect White House staff, congressional staff and the military?
Depending on whether the work is deemed "essential" or "non-essential," the White House staff and congressional staff will get to stay on their jobs.
Active-duty military is deemed "essential" and will not be furloughed.
When would the Government Shutdown end?
A Government Shutdown ends when the Congress breaks the impasse and the president signs the spending bill.
How long does a Government Shutdown last?
A Government Shutdown usually lasts for 2-3 days. Some of the shutdowns have lasted less than a day. The longest shutdown, which started on Dec. 16, 1995, lasted 21 days.
Are Government Shutdowns common?
Government Shutdowns are not very common. According to the Congress Research Service, there have been a total of 17 shutdowns since 1977. The latest shutdown is taking place after nearly 17 years.
The Good News
What would not be affected (or be partially affected) by the Government Shutdown?
Offices like Patent and Trademark Office and Passport will remain open but their operations are likely to be limited.
Similarly, the Food Safety and Inspection Service and the Food and Drug Administration are likely to continue operating but on a limited scale.
Government benefits like Social Security or Medicaid will not be affected as they are permanent entitlements that are not subject to Congress funding. Similarly, the Affordable Care Act (Obamacare) will not be affected.
The U.S. Postal Service, which is independent from the federal government, will not be affected.
WIC (Special Supplemental Nutrition Program for Women, Infants and Children), food stamps (SNAP or Supplemental Nutrition Assistance Program), or federal school lunch programs will not be affected if the Government Shutdown does not carry on for long.
The Government Shutdown will also not affect unemployment benefits.
The IRS would also continue to collect and process taxes as usual, though certain services and activities such as tax audit or tax refund may get affected.
The Bad News
What federal services will be affected by the Government Shutdown?
The Government Shutdown will affect "non-essential" federal services.
For instance, the National Park Service will be closed. Museums funded and/or managed by the federal government, such as the Smithsonian museums, will be closed. Popular tourist attractions like the Statue of Liberty and Ellis Island in the East Coast and the Alcatraz Island in the West Coast will remain closed.
All archives and most presidential libraries will be closed (unless they're privately funded and operated).
Among the federal agencies, NASA and EPA (Environmental Protection Agency) will be most affected and an estimated 97 and 94 percent of the federal employees in NASA and EPA, respectively, will be furloughed.
During the Government Shutdown, you may not be able to get a federally backed loan, especially loans for rural communities, small business owners, or families buying a home.
The Ugly News
A Government Shutdown, contrary to popular belief, does not help taxpayers save any money. Rather, shutdowns cost money in terms of back pay, lost revenue, and contingency planning. For instance, a Government Shutdown in 1995-96 cost an estimated $1.4 billion.
A shutdown also means that U.S. president Barack Obama will have to scrap part of his long-planned upcoming trip to Asia. A White House official said Obama will not be visiting Malaysia and Philippines and is mulling whether to attend the diplomatic summits in Indonesia and Brunei.
And, what's worse is that if a shutdown continues for long, it can cause a severe economic damage. Even a short shutdown, which lasts 4-5 days, can adversely affect the economic growth and shake the stock market.
