Lawmakers Aim to Break Federal Shutdown Cycle: What Stays Open, What Closes When Funds Run Out

Addressing the Looming Government Shutdown

With a potential government shutdown approaching at midnight, U.S. Rep. Mike Turner is introducing bipartisan legislation aimed at preventing future funding crises by realigning the federal fiscal year with the calendar year. Turner, a Republican from Dayton, and Rep. Jerrold Nadler, a Democrat from New York, have reintroduced the “It’s About Time Act” as Congress remains deadlocked over funding the federal government before the start of the new fiscal year on October 1.

The proposed legislation would shift the start of the federal fiscal year from October 1 to January 1. Supporters argue that this change would give Congress more time to review presidential budget proposals presented earlier in the year and enact spending bills before money runs out. The current system has been criticized for creating an impossible timeline, forcing Congress to act under immense pressure.

Turner emphasized the risks of the current system, stating that if not fulfilled, it could lead to the shutdown of non-essential government operations, putting security and essential services at risk. He believes aligning the fiscal calendar with the calendar year would allow Congress more time to ensure uninterrupted funding.

The timing of the legislation highlights a long-standing issue. Before 1842, the nation's fiscal year was aligned with the calendar year. In 1974, through the Congressional Budget and Impoundment Control Act, Congress shifted the start date to October 1, creating what supporters of the new bill see as an unrealistic schedule.

Nadler pointed out that there is too much to accomplish in the compressed window between the release of the President’s budget and the October 1 deadline. He noted that since the shift in 1974, only four times have all appropriations bills been completed on time—the last time nearly three decades ago. He believes this reform would reduce the risk of shutdowns, strengthen fiscal accountability, and improve governance.

Current Shutdown Threat

If no agreement is reached by 12:01 a.m. on Wednesday, October 1, a government shutdown will occur. This is when the federal government can no longer spend money to operate as usual. When a shutdown happens, hundreds of thousands of federal employees are furloughed—placed on unpaid leave. Essential workers continue working without pay until Congress restores funding.

Historically, furloughed workers have received back pay once shutdowns end, but the disruption affects critical services like passport processing, food safety inspections, and scientific research. This time, the Office of Management and Budget is directing agencies to identify programs that will lose funding and prepare reduction-in-force plans that could result in permanent job cuts, not just temporary furloughs. OMB is targeting positions in programs that don’t align with the administration's policy agenda.

This approach marks a significant departure from previous shutdowns. Historically, furloughs were short-term, with employees returning to work once funding issues were resolved. However, the current strategy uses the possibility of lasting job eliminations as a bargaining tool in negotiations with congressional Democrats over federal spending.

Senate Democratic leader Chuck Schumer called the threatened firings an attempt at intimidation, stating that President Trump has been firing federal workers to scare rather than govern. He argued that these unnecessary firings will either be overturned in court or the administration will end up hiring the workers back.

Partisan Blame Game

Republicans blame Senate Democrats for refusing to support a temporary government funding measure they had no role in drafting. The measure passed the House along party lines in September but failed to get the 60 votes needed for Senate passage. Vice President JD Vance stated that the shutdown is likely due to Democrats’ refusal to do the right thing.

Democrats counter that with the White House and both branches of Congress controlled by Republicans, the GOP has no one to blame but themselves. Rep. Emilia Sykes described the GOP's stance as “political malpractice,” noting that they had known for months they had until September 30 to pass a funding bill.

The president of the American Federation of Government Employees union, Everett Kelley, urged Trump and congressional leaders to negotiate in good faith to keep the lights on for the American people. He emphasized that federal employees are not bargaining chips and deserve stability and respect.

A Unique American Problem

While political disagreements over national budgets occur worldwide, government shutdowns are a unique aspect of the American political system. Other democracies avoid shutdowns entirely through different approaches. Germany and South Korea automatically continue funding at previous year’s levels when budgets are delayed, while the United Kingdom treats budget failures as votes of no confidence, triggering new elections rather than shutdowns.

Government shutdowns became the norm in the United States after the early 1980s. Before then, federal agencies continued operating with limited capacity when funding expired, minimizing nonessential activities. This changed when Attorney General Benjamin Civiletti issued opinions interpreting the Antideficiency Act to require agencies to cease operations when appropriations lapse.

The most recent shutdown lasted 35 days from December 22, 2018, until January 25, 2019, making it the longest in U.S. history. It centered on a dispute over border wall funding and was technically a partial shutdown because five of 12 appropriations bills had already been enacted. Most recently, Congress narrowly avoided a shutdown in December 2024 by passing a continuing resolution extending funding through March 14, 2025.

Economic Costs of Shutdowns

The economic costs of shutdowns are substantial. A 2019 Senate report estimated that the last three shutdowns alone cost taxpayers nearly $4 billion, including $3.7 billion in back pay to furloughed workers and $338 million in other costs. The Congressional Budget Office estimated that the 2018-2019 shutdown cost the economy $11 billion.

Beyond financial costs, shutdowns disrupt critical services. The Department of Justice canceled approximately 60,000 immigration hearings during the 2018-2019 shutdown, and the Consumer Product Safety Commission suspended efforts to keep potentially unsafe products off the market, leaving dangerous items available to consumers.

What Closes During a Shutdown

If the government shuts down, it will be up to the administration to determine which agencies and offices remain operational. Key functions during past shutdowns include:

• Postal Service: Mail delivery continues uninterrupted, and post offices remain open.
• Social Security: Existing beneficiaries continue receiving payments, but new applications may face delays.
• National Parks: Facilities requiring active staffing would close, though some monuments and outdoor areas might remain accessible.
• NASA Glenn Research Center: Personnel are furloughed except for essential security staff.
• Federal Courts: Courts typically maintain operations for several weeks using reserve funds.
• Passport Services: Processing ceases, though emergency situations may receive special consideration.
• Transportation: Air traffic controllers, airport security screeners, and customs officers remain on duty.
• Weather Services: National Weather Service continues forecasting operations.
• Veterans Services: VA medical facilities stay open, but new benefit claims are suspended.
• Military Personnel: Active-duty service members continue duties, but civilian Defense Department employees face furloughs.
• Museums: Smithsonian museums and other federally operated cultural institutions close to the public.