How close is Congress to a government shutdown and what does it mean?

After a six-week summer break, lawmakers returned to the Capitol on Monday to urgently work on preventing a government shutdown, as there are only three weeks left until the funding deadline of September 30.

When the House went on summer break on July 25, President Joe Biden had just emerged from the presidential race, Democrats were preparing to nominate Vice President Kamala Harris as their new candidate, and Republicans were strategically preparing to oppose the young candidate who seemed to have revitalized their opposition.

Now, with significant disagreements over budget priorities, some Republican leaders, including former President Donald Trump, are advocating for a shutdown if their demands are not met, such as including a bill proposed by Republicans requiring proof of citizenship for voting in federal elections.

Here’s everything you need to know about how close Congress is to a government shutdown, what it is, why it’s happening, and much more.

What is a government shutdown?

A government shutdown occurs when Congress fails to pass the necessary legislation to fund federal government operations, or when the president refuses to sign such legislation.

Here are some key reasons why this happens:

In this case, lawmakers will need a temporary law to keep the government running after the elections, as they are far from agreeing on a full-year financial measure.

Under pressure from Trump and right-wing members, House Speaker Mike Johnson (Republican, Louisiana) proposed combining temporary funding with the SAVE Act — a bill requiring proof of citizenship for voter registration.

Democrats opposed the measure, pointing out that non-citizens are already prohibited from voting in federal elections in the US, and that independent studies do not show evidence of widespread illegal voting. They also argued that the law could deter Americans from voting, as many find it inconvenient to obtain passports or birth certificates.

Even if the bill passes in the House, it is unlikely to pass in the Democrat-led Senate.

«If Speaker Johnson leads House Republicans down this extremely partisan path, the chances of a shutdown will significantly increase, and Americans will learn that the responsibility for the shutdown will fall on the hands of House Republicans», - Senate Majority Leader Chuck Schumer (Democrat, New York) and Senate Appropriations Committee Chair Patty Murray (Democrat, Washington) said in a joint statement on Friday after the bill was published.

Most federal agencies must suspend non-essential operations, close national parks, send employees on furlough, and suspend services until a new funding agreement is reached. Essential services — such as national security, law enforcement, and emergency medical assistance — continue to operate, but many government activities are suspended.

During a shutdown, hundreds of thousands of federal employees are placed on unpaid leave, while employees providing essential services are forced to work without pay until the shutdown situation is resolved.

A prolonged shutdown can also slow economic growth, affect the stock market, and create uncertainty in both domestic and international markets.

Government shutdowns are not uncommon in US history. Here are the most recent ones: