The Memo: The US government just hit the off switch, but what does a shutdown really mean?

A government shutdown isn’t a power-cut, but the effect is similar: parts of Washington DC grind to a halt when Congress fails to agree on funding. This week, the US government shut down for the first time in six years after Republican and Democratic politicians failed to pass a funding measure, and no one inside the Capitol knows what will happen next. A shutdown doesn’t close the whole country down, but it does hit pause on many government services, leaving around 750,000 federal workers (roughly 40% of the workforce) on enforced unpaid leave. This will affect everything from air travel to social security to national park access.  

Federal agencies run on funding approved by Congress and signed off by the President for the year ahead. But when politicians can’t agree on the budget – which is hardly a rare event in DC – the money stalls and agencies are forced into shutdown. 

So, how can this happen? In the US government, all branches must come to a consensus on spending proposals before they can be enacted into law. Republicans currently hold both chambers of Congress, but in the Senate, they’re shy of the 60 votes needed to pass the funding bill, giving Democrats some leverage to capitalise on the situation.  

Of course, a shutdown isn’t just politics in action, it’s also grounded in law. After all, Congress’s failure to pass a budget triggers a legal obligation. While the constitution’s ‘power of the purse’ gives Congress the ultimate authority over government money, it also serves as the legal backbone for the Antideficiency Act. This act is essentially an automatic off switch which forces federal agencies to halt nonessential operations until funding is approved. It was originally introduced to stop federal agencies from overspending and then relying on Congress to cover the shortfall. 

Even federal pay will be affected. However, the Fair Labor Standards Act (FLSA) continues to govern federal employees’ pay, so employees required to work without immediate pay (i.e., so called ‘essential’ or ‘excepted’ staff) are still entitled to overtime and other protections under the FLSA once funding is restored.  

Across the Atlantic, the UK handles money differently. Parliament must approve spending through the Supply and Appropriation Act but, if it fails, government services keep running. Instead, constitutional conventions mean the government risks losing confidence and potentially facing an election instead. It’s more about the political consequences rather than a legal shutdown. So, while Westminster would likely head to the polls, DC simply powers down. Ultimately, it’s an example of how constitutional frameworks can shape, limit and even define the way governments function when unity breaks down.