US Govt Heading Towards Shutdown: What Does It Really Mean?—Here's All You Need To Know

US President Donald Trump and Democratic leaders appeared to make little progress during a White House meeting aimed at averting a government shutdown, which could disrupt a wide range of services as early as Wednesday, Oct. 1. 

Both sides emerged from the meeting pointing fingers, each suggesting the other would be to blame if Congress fails to extend funding past the Sept. 30 midnight deadline. “I think we're headed to a shutdown,” Vice President JD Vance said, reported Reuters.

Funding for the US government is set to run out at the end of Sept. 30 unless Trump’s Republican Party can reach an agreement with the opposition Democrats on a spending bill. While budget standoffs are common in US politics, this issue has drawn particular attention as Trump has spent the past nine months reducing the size of the federal government, reported BBC.

Republicans have suggested extending government funding at current levels until Nov. 21, allowing more time to finalise full-year appropriations bills. Democrats, however, countered with an offer to keep the government open through October, reported CBS News.

A government shutdown occurs when Congress fails to approve funding for federal agencies, stopping them from spending money that hasn’t been authorised. As per a CBS News report, there have been 14 shutdowns since 1980, with the latest in 2018 lasting 34 days.

Agencies are funded through 12 annual appropriations bills, often combined into an “omnibus” bill. If Congress misses the October 1 deadline, the government shuts down fully or partially, depending on which agencies already have funding. Lawmakers can pass a continuing resolution to temporarily extend funding while new bills are negotiated.

The chances of a shutdown are high, reported the BBC. Republican officials in the Trump administration have so far offered no major concessions, expecting Democrats, who are demanding changes to keep the government open, to take the public blame. Democrats, meanwhile, see their push to protect health-insurance subsidies as broadly popular, according to BBC.

According to CBS News, during a shutdown, the federal government halts non-essential operations until Congress approves funding. Essential functions, such as protecting life and property, continue.

This includes the President, Congress, active-duty military, law enforcement, hospital staff, air traffic controllers and TSA officers. Though essential staff continue working, they wait for pay. Usually, non-essential employees are furloughed and do not get paid until funding is restored.

The last government shutdown in the US lasted from December 2018 to January 2019.