Federal Open Market Committee (FOMC)

In the United States, a government shutdown, officially known as a lapse in appropriations, occurs when funding legislation required to finance the federal government is not enacted before the next fiscal year begins. During a shutdown, the federal government curtails agency activities and services, ceases non-essential operations, furloughs non-essential workers, and retains only essential employees in departments that protect human life or property Shutdowns can also disrupt state, territorial, and local levels of government.

Congress fails to pass key funding bills

A government shutdown occurs when Congress fails to pass key funding bills, leading to the cessation of some or all government operations. This can result in the suspension of non-essential services, such as national parks and certain federal programs, while essential services like military operations and law enforcement continue to operate. The most recent government shutdown in the U.S. lasted 43 days, ending on November 12, 2025, and was the longest in history.

The threat of a government shutdown looms over Washington this week, as President Donald Trump was set to meet with key congressional leaders at the White House on Monday, Sept. 29, less than 48 hours before a shutdown could be triggered.

What is a government shutdown?

Each fiscal year, Congress appropriates funds for federal agencies to operate. If Congress does not agree on appropriations or a temporary spending bill (called a continuing resolution), the affected federal agencies must effectively shut down or stop normal spending, according to the United States Office of Personnel Management (OPM). An exception is made for certain jobs or services deemed essential, which continue to operate.