Summary
The federal government has shut down because Congress did not pass the needed funding bills. This shutdown happens because both parties cannot agree on a budget plan, especially concerning health care. As a result, many federal services are paused, and federal workers are not being paid, which negatively affects the economy.
Key Facts
- Congress failed to pass the funding bills, causing the government to shut down.
- The disagreement mainly involves health care funding and tax credits.
- Federal agencies are reducing services and furloughing workers.
- The Congressional Budget Office estimates furloughed employee payments cost $400 million a day.
- Government shutdowns reduce GDP by disrupting federal spending and services.
- National parks and other tourist sites close, harming tourism.
- There have been 22 shutdowns since 1976; longer ones have a bigger economic impact.
- The recent longest shutdown cost the economy $11 billion, with $3 billion permanently lost.
