Shutdowns Happen
Is it as Catastrophic as It Seems?
Are we at risk of government shutdown and if so, what are the consequences?
A little background: You are likely aware that there is a debate surrounding funding that affects the implementation of H.R. 7623 Telehealth Modernization Act of 2024.
The disagreement arises because some politicians want to cut spending in certain areas, while others argue for maintaining or increasing funding. The bottomline? The debate needs to be resolved by Congress before the deadline of December 20, 2024; otherwise, the government risks a shutdown.
Have We Forgotten?
The threat of government shutdown over financial disagreements is not new. Have we forgotten that the history of government shutdowns and the threat of defunding the government stretches back decades?
Let’s take a look at the history of government shutdowns before we predict an outcome on this one.
Shutdowns Through the Decades
Ever wondered why the government seems to hit pause every now and then? It all started with the Antideficiency Act, passed way back in 1870. Fast-forward to 1980, and this law got a modern twist, making it clear that federal agencies can’t spend a dime without an approved budget. When Congress can’t agree on funding, non-essential operations hit the brakes—and voilà, a government shutdown is born.
The Carter Era: The First Taste of a Shutdown
The modern shutdown playbook owes its roots to President Jimmy Carter. In 1977, Congress failed to approve funding for the Federal Trade Commission (FTC). Unlike today, only the FTC faced a temporary closure, but it was a glimpse of what would come. The incident highlighted the consequences of budget lapses and set the stage for a larger-scale interpretation of the Antideficiency Act.
The 1980s: When It Became Official
Enter the Reagan era. Attorney General Benjamin Civiletti expanded on the groundwork laid during Carter’s presidency. In 1980, he issued a legal opinion requiring full shutdowns for non-essential government operations in the absence of approved funding. This cemented the rules of the game, and shutdowns as we know them were born.
The 1990s: When Things Got Real
By the mid-’90s, shutdowns turned into political power plays. Under President Clinton, two major shutdowns—lasting five and 21 days—grabbed headlines. The fights? Medicare, education funding, and taxes. The fallout? Massive public frustration and a clear message: shutdowns aren’t just inconvenient; they’re messy political tools.
2013: The ACA Standoff
Fast-forward to 2013, when the Affordable Care Act (ACA) sparked a 16-day showdown. The demand? Defund the ACA or no budget deal. The impact? 800,000 federal employees furloughed and a whopping $24 billion hit to the economy.
2018-2019: The Longest Shutdown Yet
A border wall funding battle led to a 35-day standoff—the longest in U.S. history. Airport security lines grew unbearable, food inspections were delayed, and 800,000 federal workers were left in limbo without pay.
Click on the image to view larger.
This image, "Shutdowns Through the Decades," lays out the key moments in government shutdown history, starting with Jimmy Carter in 1980 and spanning all the way to Donald Trump in 2019. It’s a visual journey through the high-stakes drama of budget battles, showcasing why these shutdowns happened, how they ended, and what kind of fallout they caused.
Close Calls
For every shutdown that happens, there are plenty of near-misses. Over 20 threats to shut down have happened historically. Think of them as the “almosts” of government gridlock—close calls that kept us all holding our breath.
Here are a few of the near misses we’ve experienced over the year.
- 2011 Debt Ceiling Drama: A last-minute agreement narrowly avoided a catastrophic default, but not before the U.S. credit rating was downgraded for the first time ever.
- 2017 Budget Bickering: Military and healthcare funding disagreements nearly shut the government down, but a temporary deal kept the lights on.
- 2018 Disaster Aid Dispute: Funding for hurricane and wildfire relief almost caused a shutdown, but Congress passed a short-term bill just in time.
- 2020 Stimulus Deadlock: Pandemic relief talks delayed agreements, though a last-minute deal averted a shutdown.
- 2021 Infrastructure Impasse: Disputes over infrastructure funding pushed Congress to the wire before an extension was passed.
Why It Matters
Shutdowns aren’t just headline fodder—they’re windows into the high-stakes world of political negotiation. They reveal the tug-of-war between parties, ideologies, and priorities. And while we all feel the pinch, the fallout for federal workers and essential services is far more serious.
Stay tuned as we keep tabs on the latest developments. Because if there’s one thing we know about politics, it’s that the drama is never really over.
References
- Brookings – Analysis of the economic impact of the 2018-2019 U.S. government shutdown.
- History.com – Overview of the history and origins of government shutdowns in the United States.
- White House Archives – Report on the impacts and costs of the October 2013 federal government shutdown.
- House of Representatives – Full text of H.R. 10445: Current proposed funding bill.
- Reuters – Coverage of the 2011 debt ceiling crisis and its resolution.
- Washington Post – In-depth reporting on the Affordable Care Act’s role in the 2013 shutdown.
- Pew Research Center – Insights into public opinion on government shutdowns and their impacts.
- The Hill – Discussion of the role of high-profile figures in current government funding debates.
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