What Will Happen If The Government Shuts Down?

It's been all over the news about the looming threat. If Congress fails to approve a spending bill by this Friday (April 8, 2011), the federal government will shut down. If a compromise budget or at least a temporary one isn't passed by Friday the government will be forced to shut down.

And if that doesn't happen, agencies won't be able to spend money, and parts of the federal government will close up shop.
- CNN Money

So what does that mean? What will happen if that does happen? Let's look back to the Clinton era and the last major government shut down for the answer.

All 368 National Park Service sites, along with national museums and monuments were closed. That means no Statue of Liberty no Grants Tomb no Presidential Library/museums. All Federally run sites were closed as they were not essential services.

Passport processing ceased. In the last shut down 200,000 applications went unprocessed during this time period. Think about the catching up they had to do once they reopened.

Toxic waste cleanup at 609 sites nationwide stopped in the last shutdown.

All Federally funded services for the veterans, including healthcare were almost completely stopped.

The National Institutes of Health stopped accepting new clinical research patients.

Even bankruptcy cases could slow (In the last shutdown, more than 3,500 cases were delayed).


What About Social Security?

The last time those receiving benefits still received their checks in the mail, however new applications were not processed during the shut down. Meaning an agency already behind would be further behind when they resumed.

What Would Not Shut Down?

Air Traffic Control

Any type of national security, border patrol, police, etc

Since the post office is self funded they would be exempt.

I am not sure about banks and the federal reserve as I get conflicting reports. CNN says...

Workers who protect essential elements of the money and banking system would also report to work.
- CNN Money

While other sites say that the military won't get paid because the Federal Reserve would be closed. However CNN again says that they will continue to get paid which leads me to believe that the Federal Reserve (and thus the financial institutions) would not be effected.

How long would it last?

Hard to say. It could be one day or three months. It all depends how much Congress and the President digs in their heals. The last shut down in 1996 lasted 21 days.

During Reagan's administration in 1981 it lasted half a day. 400,000 Federal employees were sent home at lunch and told not to come back. A few hours later, President Reagan signed a new version of the continuing resolution and the workers were back at work the next morning.

Again during President Reagan's administration... 500,000 federal workers were sent home. An emergency spending bill had them all back at work the next day.


There you have it. Let's hope Congress comes to a compromise and get on to other matters.


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