A new federal fiscal year has arrived and the threat of a government shutdown has become a reality. Here are answers to all your questions about the government shutdown (as of October 1, 2025) from Cornerstone’s bipartisan team.
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This post was originally published on October 1, 2025 and updated on October 7, 2025 to reflect new developments in the government shutdown.
What is a government shutdown?
A full shutdown occurs during an extended funding gap for the entire government; a partial shutdown occurs when Congress has enacted some but not all federal appropriations. Under both scenarios some functions of government will continue, depending on the specific situation.
The Antideficiency Act prohibits federal agencies from obligating any money without an appropriation from Congress (except under limited circumstances discussed below). Any period of time when appropriations are not enacted into law, either through regular appropriations bills or a continuing resolution (CR), is known as a “funding gap” which causes the federal government to close its doors.
A CR is a short-term funding bill that keeps the government operating at current spending levels when Congress has not enacted regular appropriations bills for the fiscal year.
When was the most recent government shutdown and how long did it last?
The most recent partial government shutdown began on December 21, 2018, and lasted 35 days, until January 25, 2019. In that case, Congress had enacted 5 of the 12 appropriations bills but failed to enact or pass a short-term CR for the 7 others. The most recent full shutdown began on October 1, 2013, and lasted 16 days.
The federal government has shut down fully or in part three times since 2013. So, don’t we already know exactly what would happen during a shutdown?
The laws that govern shutdowns have remained relatively constant in recent decades; however, each administration may exercise some discretion in how they interpret the laws. For example, while national parks were closed in the 2013 shutdown, many remained open in the 2018-2019 shutdown.
Who makes the call on how to implement a shutdown?
The White House’s Office of Management and Budget (OMB) instructs federal agencies to create a shutdown plan, often called a contingency plan. In September 2025, OMB instructed federal agencies to plan for mass layoffs, rather than temporary workforce furloughs.
This marks a departure from how shutdowns were handled in the past, when temporarily furloughed employees were brought back after the government was reopened, and appears to be a political lever in Congress’ current standoff. Democratic leadership have contended that layoffs will be decided in the courts, potentially indicating that this will not be a sticking point.
Generally, which federal services would continue under a shutdown?
Mandatory spending does not require annual appropriations by Congress and would continue under a government shutdown. This includes Social Security payments, Medicare, interest on the national debt, and federal food programs.
Additionally, activities involving “the safety of human life or the protection of property” would continue. Programs funded by user fees could continue operating until the amount collected through the fees runs out. Programs funded with multiyear or carryover balances also may continue for a period of time as normal.
What federal services may be disrupted during a government shutdown?
Based on previous shutdowns, possible impacts could include:
- New Social Security cards may not be issued.
- Many Head Start centers may close.
- Food inspections may be delayed.
- Many government facilities, such as national parks, may close.
- Air travel may be strained.
Do federal employees keep working during a government shutdown?
Government employees who provide what are deemed “essential services,” such as air traffic control and law enforcement, are considered “excepted” and will continue working. In addition, some federal employees are considered excepted because their pay is not derived from annual appropriations.
Historically, the rest of the workforce has been placed on “shutdown furloughs,” meaning that they are not allowed to work, though this may change depending on OMB. There’s no hard and fast rule about which federal employees are furloughed; the list is determined by each agency’s contingency plan. At the peak of the 2013 shutdown, about 40% of the federal civilian workforce was furloughed.
Would federal employees be paid during a shutdown or will they receive backpay?
Generally, federal employees and contractors whose salaries are provided through annual appropriations will not receive paychecks during a shutdown. They will receive backpay after the government reopens, per a law Congress passed after the 2018-2019 shutdown. However, new OMB guidance makes it unclear whether furloughed employees will return to their positions or be will be paid retroactively.
Update (10/7): President Trump signaled that furloughed workers may not receive backpay following the 2025 shutdown. Senior White House officials confirmed that they believe the Government Employee Fair Treatment Act of 2019, which was signed by President Trump during his first term, has been misinterpreted and exclusively applies to the 2018-2019 shutdown.
How would a shutdown affect the functioning of Congress? Would staffers keep working?
A funding lapse does not prevent members of Congress from working, as their salaries do not depend on annual appropriations. During previous shutdowns, some members designated all their staff as “excepted” while others designated only a skeleton crew. Historically, House and Senate Appropriations Committee staff have been designated “excepted,” given the role they play in funding the government.
In addition, Capitol tours will not be available, public access to the complex will be severely limited, the Capitol Visitor Center will be closed, and most functions within the complex will be canceled.
How would federal grants and contracts be affected?
Funds that were obligated to an existing grantee or contractor before a shutdown occurs will continue to be awarded as planned for the current year. Grants.gov will remain accessible and the Grants.gov contact center will be open during regular business hours. However, many agencies will not respond to any inquiries received, including about upcoming deadlines, proposal preparation, and applications during the period of a government shutdown.
What is the impact of a shutdown on federal rulemaking?
A shutdown will prevent agencies from proposing new and finalizing existing regulations.
Do government shutdowns save money?
No. CBO estimated in January 2019 that the 2018-2019 partial shutdown would reduce the annual GDP in 2019 by about $3 billion. A Senate report also found that the 2013, 2018, and 2019 shutdowns wasted nearly $4 billion in taxpayer dollars.During the shutdown itself, federal spending on goods and services dropped, and reduced demand lowered output in the private sector. CBO predicted that the economy would rebound after the government reopened, but not enough to offset all of the lost GDP. (See more here.)
Update (10/7): The White House Council of Economic Advisors published an estimate that the government shutdown could cost the U.S. as much as $15 billion per week in reduced gross domestic product.
What would happen if a shutdown lasts for months?
The longer a shutdown lasts, the worse the impact on the economy and the smooth functioning of the federal government.
In addition, some programs that might be able to continue operating in the short term with multi-year or carryover funding will run the risk of ceasing if the shutdown drags on. Before Congress passed a CR ending the 35-day partial shutdown in 2019, for example, the Supplemental Nutrition Assistance Program (SNAP)—the nation’s food stamp program—faced dire consequences as early as March 2019. Almost 42 million recipients would have lost their benefits.
Other programs that run the risk of shutting down during a long-term shutdown include the Food Distribution Program on Indian Reservations and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). Finally, going without a paycheck for an extended period presents financial difficulties for many federal employees.