The United States government has experienced shutdowns ten times over the past four decades, a phenomenon rare in other nations, even during wars or constitutional crises. These shutdowns have become a uniquely American occurrence, tied to the country’s political structure and legislative gridlock.
For most nations, a government shutdown signals extreme turmoil—such as a revolution, invasion, or disaster. In the US, however, it has evolved into a bargaining tactic for political leaders, occurring with notable regularity. But why does this happen in the US when it is virtually unheard of elsewhere?
At the heart of the issue lies America’s federal system, which allows different political parties to control different branches of government. This system, crafted by the nation’s founders, was designed to foster compromise and thoughtful deliberation. Unfortunately, in recent decades, it has often achieved the opposite, fueling division and dysfunction.
This situation traces back to a 1980 decision under President Jimmy Carter’s administration. The attorney general at the time issued a strict interpretation of the 1884 Anti-Deficiency Act, a 19th-century law that prohibits the government from committing to expenditures without congressional approval. Historically, the government permitted essential spending to continue during budget gaps. However, the 1980 ruling enforced a stricter policy: no approved budget, no spending.
This interpretation sets the US apart from other non-parliamentary democracies, such as Brazil. In Brazil, a strong executive branch ensures that government operations continue during a budget impasse, avoiding the shutdown scenarios seen in the US.
The first US government shutdown occurred in 1981 when President Ronald Reagan vetoed a funding bill, resulting in a brief halt in services. Since then, at least ten shutdowns have taken place, ranging from less than a day to over a month. The most prolonged shutdown occurred from December 21, 2018, to January 25, 2019.
What Happens During a Shutdown?
During a shutdown, certain critical services, such as Social Security and military operations, continue. However, hundreds of thousands of federal employees are left unpaid. The White House estimated that during the 2018-2019 shutdown, the US economy lost 0.1 percentage points in GDP growth for each week that salaries went unpaid.
In stark contrast, other countries have mechanisms that prevent such shutdowns. Most European democracies operate under parliamentary systems, ensuring that the executive and legislative branches are controlled by the same party or coalition. If a parliament rejects a budget proposed by the government, it typically triggers new elections rather than halting services like national parks, tax refunds, or food assistance programs.
Canada offers an example of this system in action. In 2011, opposition parties in Canada’s parliament rejected the budget proposed by then-Prime Minister Stephen Harper’s Conservative Party, which held a minority of seats. The House of Commons subsequently passed a motion of no confidence, forcing an election. Despite the political crisis, government services continued without interruption.
Even Belgium, which went without an elected government for a record 589 days between 2010 and 2011, maintained essential public services, including its train system.
Similarly, Ireland operated smoothly from 2016 to 2020 under a minority government using a confidence-and-supply arrangement. This setup involves opposition parties agreeing to support critical spending bills and votes of confidence, ensuring stability despite political disagreements.
A Unique Challenge in the US
In the US, such cooperation has grown increasingly rare. Political parties are often willing to use the functioning of government as leverage to extract concessions from their opponents. The resulting gridlock has made shutdowns a recurring issue.
Government funding has been temporarily extended multiple times since last autumn, following political turbulence that included the ousting of Republican Speaker Kevin McCarthy and his replacement by current Speaker Mike Johnson. These stopgap measures were passed through bipartisan efforts, temporarily avoiding shutdowns.
However, with President-elect Donald Trump and tech mogul Elon Musk opposing a short-term funding bill that would extend government operations through March 14, the current budget is set to expire at 12:01 a.m. local time on Saturday. This raises the likelihood of an eleventh government shutdown.
As political divisions deepen, the US faces recurring brinkmanship over funding, with potentially significant consequences for government workers and the broader economy.