With a federal spending bill now scrapped and a revised version still up in the airThe United States is facing a possible government shutdown that could begin at 12:01 a.m. on Saturday, December 21, when current funding is set to expire. That raises questions about what types of services and payments could be affected just days before the holiday.
A looming shutdown stems from controversy over a spending bill that would have extended funding through March 14, but was rejected by House Speaker Mike Johnson after some Republicans — including President-elect Donald Trump — objected billion dollars in expenses that had been added to the bill.
Tesla CEO Elon Musk, a billionaire who spent nearly $300 million supporting Trump and other Republican candidates in the November election, had also voiced opposition to the spending bill, which he called “terrible.” When the measure was scrapped, Musk proclaimed on X: “The people’s voice has won!”
House Republicans, however, went ahead with it on Thursday a new plan to keep the government funded in the spring, which could help avoid a shutdown. A vote is already expected on Thursday evening.
Without congressional approval for new spending, federal agencies are usually barred from distributing money, although there are some exceptions, such as activities to protect life and property. At the same time, the authorities have to make decisions about which workers will remain at work, which can lead to various effects on government operations.
“Closings can be disruptive and lead to delays in processing applications for passports, small business loans or government benefits,” David Wessel, a senior fellow in economic studies at the Brookings Institution, wrote earlier this year in a blog posts.
Here’s what could be affected if the US government shuts down on December 21.
What happens if there is a government shutdown?
If the federal government shuts down, many government employees will be laid off, although those who provide essential services such as law enforcement and air traffic control will continue to report to their jobs.
But none of those federal workers would be paid until Congress passes a new spending bill. After the shutdown, workers will receive retroactive paychecks covering the days they were furloughed or had to work without pay, according to to the Office of Personnel Management.
It can create difficulties for some government employees, which happened during a shutdown that stretched for more than 30 daysstarting on December 22, 2018. During that outage, many federal workers turned to food pantries and other forms of assistance to get through several weeks when they didn’t get paychecks.
Is social security affected by a government shutdown?
The nation’s 67 million Social Security recipients would continue to receive their checks even if the government shuts down for business. Medicare will also continue to operate, meaning that seniors covered by the health care plan will not have their medications or treatments affected.
That’s because both Social Security and Medicare benefits are authorized by law that do not require annual approval.
Even so, Social Security’s administrative budget is discretionary, meaning it needs approval from Congress, according to to AARP. As a result, some services offered by the Social Security Administration could be affected in a shutdown, such as benefit verification and new applications for benefits, the group said.
Would a government shutdown affect TSA or air travel?
With millions of Americans expected to travel during the holidays, there are many questions about how a shutdown could affect air travel. Because they provide essential services, air traffic controllers and Transportation Security Administration agents would be required to work without pay.
About 59,000 of the TSA’s 62,000 workers are considered essential and would continue to work without pay during a shutdown, the TSA said in an email sent to CBS News. But a shutdown could cause delays at airports over the weekend, the agency warned.
“We expect to screen 40 million passengers over the weekend and through January 2,” a TSA spokesperson said. “While our staff have prepared to handle high volumes of travelers and ensure safe travel, an extended shutdown could mean longer wait times at airports.”
Does the USPS deliver mail in a government shutdown?
Yes, because the US Postal Service is an independent agency. In case of previous closures, operations have continued. This means mail would still be delivered and post offices will remain open.
Does the military get paid during a government shutdown?
Active-duty members of the military and federal law enforcement would continue to work, but would not be paid until Congress signs off on new spending. But most civilian personnel working for the US Department of Defense would be furloughed.
Veterans Affairs and the Department of Defense are expected to begin alerting workers to shutdown protocols on Thursday, according to to Military Times. The impact is likely to be felt in the first week of January when the first military paychecks of 2025 will be deposited, which are scheduled to include a 4.5% pay increase for all troops, the publication noted.
What shuts down in a government shutdown?
Many services would be frozen or delayed if there is a shutdown, including environmental and food inspections by the Environmental Protection Agency and the US Food and Drug Administration, according to to the Committee for a Responsible Federal Budget, a public policy group focused on federal spending.
National parks would likely close, while the National Institutes of Health could also be affected, the group noted. While taxes are still due, such as quarterly estimated payments due on January 15th, the IRS can also be affected by the holiday, although tax filing season usually doesn’t start until late January.
How long can a government shutdown last?
The odds of a government shutdown have increased with recent developments, according to Goldman Sachs analysts in a Dec. 18 research note. But, they added, “a protracted shutdown looks unlikely in our view.”
A spending measure could also pass before the Dec. 21 deadline if Republicans can revise it to appease Trump, who opposed billion dollars in expenses are added to the bill, Goldman analysts added.
“Trump’s opposition was unrelated to the main components — he voiced support for the spending extension and disaster and farm aid — so it’s possible a revised package could still pass before” the deadline, they wrote.
