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The US government has shut down – what happens now?

The US government has shut down – what happens now?

Summary

The United States government shut down because lawmakers could not agree on a plan to fund government operations. Without new funding, many government employees are either working without pay or are temporarily not working at all. After reaching an agreement, employees generally receive back pay, but contract workers may not get paid unless their companies cover it.

Key Facts

  • The government shutdown started because Democrats and Republicans could not agree on a funding plan.
  • The shutdown began at 00:01 EDT on a Wednesday, marking the start of the new fiscal year without new funding approval.
  • Republicans wanted to pass a bill for funding until November 21, but Democrats opposed it due to cuts in Medicaid.
  • During the shutdown, "non-essential" government employees are furloughed, meaning they are temporarily out of work without pay.
  • Furloughed employees usually get back pay once the shutdown ends, but contract workers might not.
  • Essential workers continue their jobs without pay during the shutdown and are paid afterward.
  • The Congressional Budget Office says approximately 750,000 federal employees could be furloughed daily, costing about $400 million in wages each day.
  • A memo advised government agencies to prepare for large-scale layoffs, although historically, most furloughed employees return to work after shutdowns end.

Source Information