Government shutdowns

Definition

Government shutdowns occur when federal agencies lack funding due to a failure in passing appropriations bills or continuing resolutions in Congress. During a shutdown period, non-essential government services may be temporarily suspended until an agreement on funding is reached.

Related terms

Appropriations bills: Appropriations bills are proposed laws that authorize spending for specific purposes or programs within the federal budget.

Continuing resolutions: Continuing resolutions are temporary measures passed by Congress to fund the government for a limited period of time when appropriations bills have not been finalized.

Fiscal year: Fiscal year refers to the 12-month period used by governments and businesses for financial reporting and budgeting purposes. The U.S. government's fiscal year starts on October 1st and ends on September 30th.