When Congress hasn’t passed appropriations bills for an entire fiscal year, it sometimes passes temporary spending bills-continuing resolutions-that fund government operations until a specified date. The House, however, isn’t scheduled to return until September 12, which means it will be in session only three weeks before the fiscal year ends on September 30. The Senate is scheduled to return from its August break on September 5, giving it four weeks to make progress on passing fiscal 2024 appropriations. That is likely to be very contentious this year-and there is not much time. When the House and Senate pass different bills, the next step is a conference committee at which the two chambers are supposed to forge a compromise, which goes to a vote in each chamber before going to the president. The House bills also include provisions on abortion, contraception, regulation of tobacco, and healthcare for trans persons that aren’t likely to pass the Senate. But House Republicans, unhappy with the agreement Speaker Kevin McCarthy struck with the White House, want to spend less than the levels specified in the Fiscal Responsibility Act-much to the consternation of Democrats and the White House, which says President Biden would veto the appropriations bills that are pending in the House. The Senate Appropriations Committee has followed that path and has passed all 12 appropriations bills with bipartisan support. ![]() At the same, the expectations were that this settled the overall size of the appropriations bills, and Congress would pass 12 bills that added up to the agreed-upon levels. In June 2023, with the backing of Republican leaders in the House and Senate, Congress passed and President Biden signed the Fiscal Responsibility Act, which lifted the ceiling on the federal debt and set limits on annual appropriated spending-one for defense, one for non-defense-for the fiscal years 2024 (which begins October 1, 2023) and 2024. Why does a shutdown look likely in the fall of 2023? The National Gallery of Art, for instance, says it will remain open as long as it can tap such reserves, but will have to close if the shutdown lingers. Such voluntary services are a violation of the Antideficiency Act and will not be permitted under any circumstances.” The Advisory Council on Historic Preservation says, “A staff person will be instructed to ensure that, at the end of the last day of work with appropriated funds, lights and electronic devices not needed during the shutdown are turned off.” Some agencies say operations will continue if they haven’t spent previously appropriated sums or if they have income from fees that they can tap. The Securities and Exchange Commission’s contingency plan, for instance, cautions: “During the shutdown, employees who have not been designated as excepted may not volunteer to work without pay. Shutdowns are sufficiently likely that the White House Office of Management & Budget posts detailed contingency plans that government agencies maintain for shutdowns. Shutdowns can be disruptive, leading to delays in processing applications for passports, small business loans, or government benefits shuttered visitor centers and bathrooms at national parks fewer food-safety inspections and various inconveniences. ![]() In addition, the Treasury can continue to pay interest on U.S. All this applies only to the roughly 25% of federal spending subject to annual appropriation by Congress.īenefits such as Social Security and Medicare continue to flow because they are authorized by Congress in laws that do not need annual approval (although the services offered by Social Security benefit offices may be limited during a shutdown). Government employees who provide what are deemed essential services, such as air traffic control and law enforcement, continue to work, but don’t get paid until Congress takes action to end the shutdown. What happens when that occurs?ĭuring shutdowns, many federal employees are told not to report for work. When Congress fails to enact the 12 annual appropriation bills, federal agencies must cease all non-essential functions until Congress acts. Under the Antideficiency Act (initially passed in 1884 and amended in 1950), federal agencies cannot spend or obligate any money without an appropriation (or other approval) from Congress. Congress appears to be on track to trigger a government shutdown on October 1, 2023, because it is not expected to pass the 12 appropriations bills that fund government operations before the start of the new fiscal year.
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