What is a government shutdown?

Sep 26, 2025 by AFP

The term “government shutdown” may sound like something that only affects Washington, but the truth is that it impacts everyday people across the country.

Families, workers, veterans, and small businesses all see the effects.

The kicker is that these shutdowns never solve our long-term budget problems.

What is a government shutdown?

Shutdowns happen because Congress fails to pass the necessary spending bills by October 1 of each year for one reason or another.

These are called “appropriations bills,” and there are 12 of them, each with funds designated for different parts of the federal government.

When these appropriations bills aren’t approved, the agencies or projects connected are shut down or begin operating at minimal capacity.

Typically, these bills aren’t approved because Democrats and Republicans in Congress can’t agree on what needs to be prioritized in the federal budget.

Since shutdowns are disruptive and unpopular, Congress usually passes “continuing resolutions” to temporarily keep the lights on.

These just kick the can down the road.

How does a government shutdown affect everyday life?

These shutdowns can lead to arguments on the House and Senate floors, but they aren’t just political drama. They have real-life consequences:

Federal workers don’t get paid. Nearly 2 million civilian federal employees and 1.3 million active-duty military personnel will likely see their pay delayed, meaning real families scramble to cover bills and groceries.
Small businesses get squeezed. Many small businesses depend on federal permits and contracts. During a shutdown, those approvals are delayed until the shutdown is resolved. This drives uncertainty among small business owners and forces them to put plans on hold.
Economic uncertainty grows. The Federal Reserve is unable to collect important economic data, which means that larger businesses often institute hiring and investment freezes until certainty returns.
Veterans and seniors face life-threatening delays. VA clinics, Social Security offices, and Medicare call centers often cut staff, making it harder for seniors and veterans to access needed benefits. For those who need care quickly, this can be dangerous.

In short, while Washington bickers and fails to solve serious spending problems, everyday Americans pay the price.

What is a continuing resolution?

When Congress cannot resolve its budget disagreements, members compromise on a temporary continuing resolution.

This means that spending continues according to the terms of the CR, but typically at the previous year’s levels. Think of it like putting the federal government on autopilot.

On the surface, a CR prevents the immediate chaos of a shutdown, but it comes with a catch:

It avoids tough choices. Lawmakers don’t have to set real priorities or cut wasteful spending.
It creates uncertainty. Government agencies and businesses that employ hundreds of thousands of real people can’t plan ahead because they don’t know what funding will look like in a few months.
It kicks the can down the road. Instead of solving the problem, Congress schedules another shutdown, often just weeks later.

Healthy businesses and families can’t operate like this in the real world, but it happens far too often in Washington.

Why this matters for you

The constant cycle of shutdown threats and CRs hurts more than government agencies; it hurts the entire economy.

According to the Congressional Budget Office, the 2018–2019 shutdown cost the American economy about $11 billion.

When politicians refuse to do their job, Americans end up footing the bill.

Time to demand real solutions

The bottom line is that we can make government work, but it won’t happen as long as Congress regularly threatens shutdowns and CRs. This creates chaos and economic uncertainty.

Like healthy businesses, lawmakers must have the courage to pass budgets on time.

They need to prioritize and cut wasteful spending. Programs that don’t work can be cut, while communities in need still receive resources.

Another solution could be constitutional and statutory rules for a balanced budget, which 49 states already have.

Let Washington know if you’re tired of shutdown politics and endless temporary fixes.

Click here to learn about a bill that would prevent government shutdowns.