The US government could shutdown at midnight. Here’s how you could be impacted, and what that means

Congress You have until midnight on Friday to come up with a way to fund the government or federal agencies will closemeaning hundreds of thousands of federal employees could be sent home (or remain on the job without pay) right before the holidays.

The Republicans abandoned a bipartisan plan on Wednesday to avoid a closure after the elected president donald trump and billionaire Elon Musk went against. Trump told the speaker of the House of Representatives Michael Johnson essentially renegotiate the deal days before the deadline when federal funds run out.

On Thursday, Republicans did just that, crafting a revamped government funding proposal that would keep the government running for three more months and suspend the debt ceiling for two years, through Jan. 30, 2027. But the House rejected Trump’s new plan to fund operations and suspend the debt ceilingas Democrats and dozens of Republicans refused to meet their sudden demands.

The debt ceiling debate continues amid the funding dispute, bringing Washington to the brink of a shutdown… and the clock is ticking.

If an agreement is not reached by midnight Friday, the workers could be fired, air travel could be disruptedMedicare could be affected and more.

Here’s what a government shutdown means and how it could affect you.

What does it mean if the government shuts down?

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A government shutdown occurs when Congress fails to pass legislation that funds the government on a temporary or more permanent basis, and such measure is not signed by the president.

When would a government shutdown begin?

If Congress does not pass a continuing resolution or a more permanent spending measure by Friday, the federal government will shut down.

When the fiscal year ended on September 30, Congress passed a temporary funding bill to keep the government running.

That measure expires on Friday.

How will government agencies and services be affected by a shutdown?

Each federal agency determines its own plan for how to handle a shutdown, but basically any government operation deemed non-essential stops happening and hundreds of thousands of federal employees see their work interrupted.

Fired workers

Sometimes workers are furloughed, meaning they keep their jobs but are temporarily not working until the government reopens. Other federal workers can remain on the job but without pay, with the expectation that they will be reimbursed in full once the government reopens.

The basic rules about who works and who doesn’t date back to the early 1980s and have not been significantly changed since then. According to a precedent-setting memo drafted by then-President ronald reagan David Stockman, budget chief, federal workers are exempt from permits if their jobs are related to national security or if they perform essential activities that “protect life and property.”

air travel

Essential government agencies like the FBI, Border Patrol and Coast Guard remain open. Transportation Security Administration officials would continue to staff airport checkpoints.

During the 2019 lockdown, many travelers endured longer queues at airports as some security staff and air traffic controllers opted not to report to work. Transportation Security Administration workers are considered essential, meaning they must remain on the job even if the government shuts down.

But without a flow of funds, TSA employees’ paychecks would be suspended, which could lead many to simply stay home. If that happens, airport checkpoints could experience bottlenecks during the busy holiday travel period, when the TSA has been outgoing a 6.2% increase in screening volumes.

“While our staff is prepared to handle high volumes of travelers and ensure safe travel, please note that an extended closure could mean longer wait times at airports,” said TSA Administrator David Pekoske. warned on Thursday.

During the last shutdown, calls to TSA agents increased by up to 300% at Dallas-Fort Worth International Airport, and the national no-show rate among airport screeners increased from 3% to 10%. according to the research firm Tourism Economics.

Fields, national parks and more

But national parks and monuments would close, and while troops would remain at their posts, many civilian employees at agencies like the Department of Defense would be sent home. Judicial systems would also be affected, as civil proceedings would be suspended while criminal proceedings continue.

Automated tax collection would continue, but the Internal Revenue Service would stop auditing tax returns.

USPS mail, social security checks and medicare

The United States Postal Service will also not be affected because it is an independent agency.

The US Postal Service is operating as usual during closures because the independent entity is usually financed by its own sales and servicesnot with tax money. As closing approached in September 2023, before being resolved a few hours before it started: the Postal Service clarified that it could deliver packages uninterrupted.

The almost 73 million people who receive Social Security benefits you would still receive your checks if the government closes. This is because Social Security is considered a mandatory program that is not dependent on short-term funding hanging in the balance on Capitol Hill.

But anyone who needs to contact the Social Security Administration for help could experience longer wait times as agency staff are furloughed. The agency’s staffing is already at its lowest level in 50 years, as House Republicans rejected increasing funding for it in the package passed in September.

Beneficiaries of both Social Security and Medicare would continue to receive their benefits, which are part of mandatory spending that is not subject to annual appropriations measures. Doctors and hospitals would also continue to receive their Medicare and Medicaid reimbursements.

But new requests may not be processed. During the government shutdown in 1996, thousands of Medicare applicants were rejected daily.

What is the debt ceiling?

The debt ceiling, or debt limit, is the total amount of money that the United States government can borrow to meet its existing legal obligations. For the Treasury Department to borrow above that amount, Congress must raise the limit.

He federal debt It amounts to about $36 trillion, and rising inflation after the coronavirus pandemic has raised government borrowing costs so much that debt service next year will exceed national security spending.

The last time lawmakers raised the debt limit was in June 2023. Instead of raising the limit by a dollar amount, lawmakers suspended the debt limit until Jan. 1, 2025. At that time, the limit It will be automatically increased to equal the amount of the debt. which has been issued by the Treasury Department.

The debt limit vote has been used of late as a political leverage point, a bill that must be passed and can be burdened with other priorities.

What happens if the debt ceiling is not raised?

There is actually no need to increase the debt limit at this time. On Jan. 1, when the debt limit kicks in, the Treasury Department can begin using what it calls “extraordinary measures” to ensure the United States does not default on its debts.

Some estimate that these accounting maneuvers could delay the default deadline until the summer of 2025, but that is exactly what Trump wants to avoid, since an increase would then be necessary while he is president.

Lawmakers have always raised the debt ceiling on time because the consequences of failure are harsh. If no action is taken, the government would default on its debts, a first-time situation that Treasury Secretary Janet Yellen and economic experts have said could be “catastrophic” for the global economy and markets.

Raising or suspending the debt limit does not authorize new spending or tax cuts; it simply recognizes past budget decisions (i.e., current budget law) and therefore allows the federal government to meet its existing legal obligations. For that and other reasons, some have advocated eliminating the cap entirely.

What is a general invoice?

It’s a huge, sweeping measure that lawmakers generally had little time to digest (or understand) before voting on it.

There are a lot of spending measures thrown together, and sometimes that’s what happens if the dozen separate funding measures haven’t gone through Congress’s spending process in time to be approved and fund the federal government.

But this time Republicans opted for a blanket solution, hoping to renegotiate all federal spending next year, when Trump is in the White House and they control both chambers of Congress.

Will there be a government shutdown?

Maybe… and maybe not.

There is often a scramble on Capitol Hill to come up with a last-minute funding package to keep the government open just before the deadline, at least temporarily. But shutdowns have occurred, most recently six years ago, when Trump demanded funding for a wall along the U.S.-Mexico border. That closure was longer in American history.

Jimmy Carter saw a closure every year during his tenure as president. And there were six closures during Reagan’s time in the White House.