A government shutdown would disrupt public services, mainly those that require funding from the federal budget. It also puts thousands of direct and contract workers at risk, though they can typically get back pay once the government reopens.
The most visible impact of a shutdown is on federal employees, including air traffic controllers and Transportation Security Administration agents, who might have to work without pay for the duration of the closure (although they would be paid once appropriations bills are passed). Federal food safety inspectors might have to call off inspections and halt new testing. The National Institutes of Health might have to delay new clinical trials, putting patients at risk. The VA might stop processing claims for disability, housing and employment benefits. On-base child care at military bases might cease, and veterans would see delays in getting appointments with doctors and other services.
Other programs, however, would continue because they are authorized in laws that do not require annual approval. So would the disbursement of Pell Grants and other student loans, Medicare and Social Security payments, the payment of interest on U.S. Treasury debt, and most defense and veterans’ services. Some other routine functions, such as maintenance of national parks and the collection of garbage and trash, might stop. Visa and passport applications would be delayed, and bankruptcy cases might go unprocessed.
The longer a shutdown lasts, the more harm it does to the economy. According to a Goldman Sachs analysis, GDP growth could drop by 0.2 percentage points for each week of a shutdown, though the loss could be offset by a rebound in the quarter afterward. And the churn of headlines might do further damage to American citizens’ trust in their elected representatives and our institutions.