Factbox-US government shutdown: what does it mean?
(Reuters) — Large swaths of the U.S. government could temporarily close on Oct. 1 if Congress does not approve spending bills due to a dispute between far-right Republicans and other lawmakers.
Here are some facts about U.S. government shutdowns:
WHY WOULD THE GOVERNMENT SHUT DOWN?
Congress must allocate funding to 438 government agencies each fiscal year, which ends on Sept. 30. If lawmakers don't pass those bills before the new fiscal year starts, those agencies will be unable to continue operating as normal.
There have been 20 shutdowns since the 1970s, according to the Congressional Research Service. The most recent one was also the longest, lasting 35 days between December 2018 and January 2019 due to a dispute over border security.
Lawmakers often temporarily push that deadline back by extending agencies' current funding levels in a «continuing resolution» so they can continue negotiating.
WHAT IS THE IMPACT?
Hundreds of thousands of federal workers would be furloughed without pay and a wide range of services could be disrupted, from passport applications to trash pickup at national parks.
Other workers deemed «essential» would remain on the job, though they also would not get paid. Services like mail delivery, tax collection and U.S. debt payments would continue.
Shutdowns that last only a few days would have little practical impact, particularly if they occur over a weekend, but the broader economy could suffer if federal employees begin missing paychecks after two weeks.
A shutdown would directly reduce GDP growth by around 0.15 percentage points for each week it lasts, according to Goldman Sachs, but growth would rise by the same amount after the shutdown was resolved.
The 2018-2019 shutdown cost the economy
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