‘Government Shutdown’ in the US is a situation when the federal government lacks the necessary funds for its operations. This occurs when the US Congress is unable to pass a budget or spending bill that funds the government, and the President does not sign it. In this situation, the government has to temporarily close many of its functions, due to which government services are affected and employees can be sent on leave without pay.
Reasons for Government Shutdown:
Disagreement on the budget: Expenditure bills cannot be passed if there are differences of opinion among different political parties in the Congress regarding the budget. End of fiscal year: If the budget is not passed before the start of the new fiscal year, a shutdown situation may arise.
Effects of Shutdown:
Disruption in government services: Non-essential government offices, national parks, museums etc. may remain closed. Impact on employees: Thousands of government employees may be sent on leave without pay, affecting their financial condition. Economic impact: The shutdown has a negative impact on the country’s economy, which may reduce the growth rate.
Recent Status:
In December 2024, the US was in danger of a shutdown after the House of Representatives rejected a spending bill backed by President-elect Donald Trump. The bill was rejected by 235 votes to 174, with opposition from almost all Democrats and 38 members of Trump’s Republican Party.
Efforts to avoid shutdown:
On Friday, December 20, 2024, the US House of Representatives passed a funding bill to avoid a last-minute government shutdown, allowing the government to remain operational until mid-March. Now, the Senate has to act on it.
