Myths and Facts on the Prevent Government Shutdowns Act

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Senators James Lankford, Maggie Hassan, and bipartisan cosponsors recently re-introduced the Prevent Government Shutdowns Act (PGSA). Representatives Jodey Arrington and Jimmy Panetta lead PGSA in the House.

PGSA would 1) keep Congress in DC to finish appropriations bills if they aren’t done prior to the new fiscal year and 2) maintain services for the American people in the meantime.

The Prevent Government Shutdowns Act already has broad, bipartisan support. Interest will grow as more members see how it will strengthen Congress, deepen member engagement in the legislative process, and deliver better results for all Americans including by avoiding disruption and waste.

Myth #1: The federal government has always had shutdowns.

Fact: The first shutdown with federal employee furloughs happened in 1981. Carter Administration memos in 1980 and 1981 narrowly re-interpreted the Anti-Deficiency Act (1870/1884) to cause shutdowns during a lapse in appropriations.

Before then, agencies generally continued operations under business as usual until new appropriations were enacted. President Carter may have hoped the threat of shutdowns would help Congress meet budget deadlines, but it clearly has not accomplished that goal.

Myth #2: Ending shutdowns would weaken the Appropriations Committees and Congress.

Fact: Fantasies of shutdown leverage short-circuit the appropriations process and weaken Congress. Dispelling illusions of advantage would focus members on the art of the possible.

An inclusive process to earn votes for continually improving appropriations would strengthen cohesion within Congress and reinforce its institutional heft.

Free of the distractions of negotiating ad hoc continuing resolutions or countering unrealistic notions, appropriators could focus more on completing their important work. PGSA includes strong incentives for Congress to avoid a lapse in appropriations because all members would have to stay in DC to complete regular appropriations.

Myth #3: Automatic continuing appropriations would give the White House more power.

Fact: PGSA provides funding in 14-day increments, a tight leash for federal agencies. It would keep OMB staff in DC just like Congress. In the states, the possibility of shutdowns lets governors prevail on legislators much more in budget than programmatic priorities.

Myth #4: Congress would not need to pass a budget again.

Fact: Congress has and will have many reasons to pass appropriations each year: to keep up with inflation and population changes, to adjust to geopolitical dynamics, for members to advance their priorities, and more.

In addition, PGSA includes strong incentives based on members’ equality on time, namely, having to stay in DC if appropriations are unfinished by the start of the fiscal year. Even without that, states with automatic continuing appropriations continue to enact budgets regularly.

Regular appropriations are crucial. Notably, however, they are about one-fourth of the spending side of the budget and virtually none of the revenue.

Myth #5: PGSA would lock in bloated spending.

Fact: The risk of shutdowns can contribute to budget bloat by encouraging leadership to assemble must-pass packages that attract sufficient support. Tight control of appropriations bills and especially year-end mini-, mega-, and omnibus appropriations acts limit members’ chances to contribute. Member support for these packages is often modest.

Tentative support can flip to opposition if interest groups complain too much about funding levels. Letting various line-items be higher than needed mitigates those complaints and is the path of least resistance.

When votes must be earned through opportunities for members to contribute, support is more robust, and the process could more easily right-size line-items for higher priorities. PGSA changes the politics of appropriating to make defeating bloat easier.

Myth #6: PGSA would cut spending.

Fact: PGSA would help Congress adjust the composition of annually appropriated (“discretionary”) spending – one quarter of total spending – but overall discretionary levels would depend on member preferences and the broader budget process. States with longstanding automatic continuing appropriations provisions may be a little more efficient, but their per-capita state and local spending remains close to similar states.

Congress could still enact spending reductions through regular appropriations, of course. PGSA simply changes what happens during a lapse in appropriations. It does not change Congress’ powers to reduce spending or consolidate programs.

Myth #7: PGSA is simply an auto-CR bill.

Fact: PGSA is a game-changer. Negotiating, drafting, and processing ad hoc CRs distract from completing regular appropriations. Continuing the status quo until full appropriations bills are enacted takes the temperature down and expands the space for Congress to appropriate well and to conduct other important work. With these expectations in mind, Congress may even be able to finish appropriating in July so agencies have time to plan before the new fiscal year.

Myth #8: Shutdown brinksmanship produces results.

Fact: No, it doesn’t. Newt Gingrich didn’t get massive spending cuts. Republicans didn’t defund Obamacare or Planned Parenthood. President Trump didn’t get the level of border wall funding he sought. Democrats didn’t get expanded Obamacare subsidies extended or immigration enforcement changes. Shutdown brinksmanship has repeatedly failed to achieve its primary stated objectives.

Myth #9: Americans want Congress to fight.

Fact: Americans want Congress to work together to solve problems, which includes vigorously advocating for priorities. Polarization makes problem solving harder, and grandstanding over shutdowns polarizes Congress and the public discourse.

Shutdowns are unpopular: 61% say shutdowns are bad for Congress’ ability to help the country succeed. 87% support forcing Congress to stay in DC until appropriations are done with no disruptions in the meantime.

Myth #10: The Constitution bars automatic continuing appropriations.

Fact: Appropriations take many forms. Funds can be annually appropriated or directly appropriated from authorizing statutes, by dollar amount or subject to eligibility criteria, or for one, several, or indefinite years.

On the Constitution’s provision limiting Army appropriations to two years, GAO’s 1986 report on automatic funding approaches says that “an ACR [automatic CR] covering the Defense Department would not violate this provision because an ACR, like the current continuing resolutions, would create a new appropriation, when activated . . .”

Myth #11: States all have shutdowns if they don’t enact budgets on time.

Fact: Several states have taken shutdowns off the table with comprehensive automatic continuing appropriations: Rhode Island, Wisconsin, North Carolina, and Kansas. Many other states have partial continuing appropriations. Legislators in additional states have taken notice, and legislation to prevent shutdowns is advancing.

Myth #12: PGSA is enough to fix federal budgeting.

Fact: PGSA can improve federal budgeting and appropriations, but it is not a silver bullet. Consensus budget targets, a real budget, and more will be needed for the federal budget process to unleash Congress’ talents in the service of the American people.