What is a Government Shutdown? Understanding Lapses in Appropriations

Today, the federal government hit a milestone - the longest lapse in appropriations in U.S. history. Here's what's actually happening in a shutdown—and what isn't.

The federal government is experiencing a lapse in appropriations—commonly called a "government shutdown." But what does that actually mean? And why does it happen?

Understanding shutdowns requires understanding the constitutional foundation of federal spending: Congress holds the power of the purse, and no federal agency can spend money without an appropriation from Congress.

When appropriations expire and Congress hasn't passed new ones, agencies enter a "lapse in appropriations." The Antideficiency Act prohibits agencies from spending money they don't have—and violation carries criminal penalties. So agencies shut down.

But not entirely. Some functions continue, some employees stay on the job, and some payments keep flowing. This post explains how shutdowns actually work in practice.

What Triggers a Shutdown?

A government shutdown occurs when one or more of the 12 annual appropriations bills expire and Congress hasn't passed either:

• New appropriations bills for the fiscal year
• A Continuing Resolution (CR) extending prior year funding
• An omnibus bill combining multiple appropriations

The fiscal year starts October 1. If Congress hasn't acted by midnight September 30, agencies whose appropriations expired face a lapse.

Not all agencies shut down at once. Congress often passes some appropriations bills while delaying others. In 2018-2019, nine bills passed on time—but three didn't, triggering a partial shutdown affecting about 25% of the government.

The current situation (as of November 2025): Congress has not passed full-year appropriations for any of the 12 bills. The government has been operating under a Continuing Resolution, but even that has lapsed, putting the government in its second month of shutdown.

The Antideficiency Act: Why Agencies Must Stop

Constitutional foundation: Article I, Section 9, Clause 7 of the U.S. Constitution states: "No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law." This clause establishes Congress's power of the purse—the fundamental principle that the executive branch cannot spend money without congressional authorization.

The Antideficiency Act (31 U.S.C. § 1341-1342, 1349-1351, 1511-1519) implements this constitutional requirement and provides detailed guidelines for how agencies can use, spend, and manage funding. First enacted in 1884 and amended several times (most recently in 2019), the ADA prohibits federal agencies from:

• Obligating or expending funds before an appropriation
• Accepting voluntary services (employees working without pay authorization)
• Making expenditures or obligations exceeding appropriations

Violation carries criminal penalties: Fines and up to two years in prison for federal employees who knowingly violate the Act.

The Act has three narrow exceptions allowing agencies to continue operations during a lapse:

1. Activities authorized by other statutes
2. Activities necessary for the safety of human life or protection of property
3. Activities funded by multi-year or no-year appropriations (money that hasn't expired yet)

These exceptions create the distinction between "excepted" and "non-excepted" functions.

What Stops vs. What Continues

During a shutdown, agencies categorize their functions and employees into three categories:

Funded By Multi-Year or No-Year Appropriations (Continue Operating)

Definition: Activities funded by multi-year or no-year ("available until expended") appropriations that haven't expired.

Examples:

• Certain VA medical care accounts
• Some research grants
• Highway Trust Fund projects
• Some safety-net benefits programs

Employees funded by multi-year appropriations: Report to work as usual and get paid out of previously appropriated funds. These employees are not affected by the shutdown of annual appropriations.

Excepted Functions (Continue Operating)

Definition: Activities that meet one of the two remaining Antideficiency Act exceptions—even though their annual appropriations have lapsed.

Excepted activities to protect life and property:

• Law enforcement and judicial operations
• Active-duty military
• Air traffic control
• Immigration and customs officers
• Airport screeners (TSA)
• Food and safety inspectors
• Federal Bureau of Prisons
• Coast Guard search and rescue
• Weather forecasting
• Wildfire response

Authorized or implied by other statute:

• Social Security and Medicare payments (permanent appropriations)
• Federal Reserve operations
• Postal Service (self-funded)

Necessary to execute constitutional duties:

• The President and Executive Office
• Members of Congress and congressional staff
• Foreign affairs and diplomatic functions

Excepted employees: Required to work but don't get paid until appropriations pass. Guaranteed back pay by law (Government Employee Fair Treatment Act of 2019).

Non-Excepted Functions (Shutdown)

Definition: Everything else—the vast majority of discretionary government operations.

Examples:

• National parks and museums (closed to public)

• EPA environmental enforcement (paused)

• HUD housing program management (skeleton staff)

• SBA small business loans (halted)

• Federal employee training and conferences (cancelled)

• Grant awards and contract modifications (delayed)

Non-excepted employees: Furloughed (sent home without pay). Guaranteed back pay by law (Government Employee Fair Treatment Act of 2019).

Lapse Plans: Agency Roadmaps for Shutdowns

Once every other year, agencies submit contingency plans for a lapse in appropriations to the Office of Management and Budget (OMB). These "lapse plans" are public documents that reveal:

• Total employees vs. furloughed employees
• Which functions are excepted (continue) vs. non-excepted (shutdown)
• Legal justifications for excepted activities
• Timeline for orderly shutdown (usually 4 hours)
• How quickly the agency can resume operations

Why lapse plans matter: They're the authoritative source for understanding what happens during a shutdown at each agency. They also reveal priorities—agencies must justify every excepted function, and courts can review those decisions. They also can change over time as a shutdown progresses.

Where to find them: In the past, OMB published lapse plans on the OMB website. The most recent version of Circular A-11 changed this and now individual agencies post them on their websites during shutdowns.

See our complete directory of agency lapse plans with direct links to the plans for all 24 CFO Act agencies.

How Shutdown Procedures Evolved: The 1980-1982 Legal Shift

Before 1981, government shutdowns looked very different. When funding gaps occurred, agencies didn't cease operations entirely. Instead, federal employees continued reporting to work as usual—though agencies would halt new contracts and grant awards while waiting for appropriations.

This approach changed following a pair of legal opinions issued by Attorney General Benjamin Civiletti in 1980 and 1981.

The Civiletti Opinions

Civiletti's legal interpretations clarified what the Antideficiency Act actually required during a lapse in appropriations. His key finding: permitting federal employees to work during a funding gap meant the government was incurring obligations—which violated the ADA's prohibition on obligating funds without an appropriation.

The 1980 opinion established that agencies must cease operations during funding gaps, except where explicitly authorized by law.

The 1981 opinion refined this interpretation, establishing a narrow exception: federal employees could continue working only when necessary to protect the safety of human life or the protection of property, or where their activities were explicitly required by statute.

These legal opinions transformed how agencies handled funding gaps. Before 1980, agencies largely continued normal operations during brief lapses. After 1981, agencies were required to furlough employees and cease most activities.

The 1982 Congressional Response

In response to the Civiletti opinions, Congress amended the Antideficiency Act in 1982. The amendments:

• Prohibited "voluntary services": Explicitly barred federal employees from working without pay authorization, even if willing
• Codified the life and property exception: Formalized the narrow exception for activities necessary to protect human life or property
• Established criminal penalties: Maintained fines and potential imprisonment for knowing violations

What this means today: The shutdown procedures agencies follow now—furloughing employees, categorizing functions as excepted or non-excepted, preparing detailed lapse plans—stem directly from this 1980-1982 legal framework.

Before this shift: Brief funding gaps were largely administrative inconveniences. Agencies continued operations while awaiting appropriations.

After this shift: Funding gaps became "government shutdowns" requiring agencies to cease most activities, furlough employees, and operate only excepted functions.

Why Understanding This History Matters

The modern government shutdown—with furloughed employees, closed services, and economic disruption—is not a constitutional inevitability. It's the product of specific legal interpretations from 1980-1981, codified by Congress in 1982.

Other countries with similar appropriations systems don't experience shutdowns the way the United States does, because they interpret funding gaps differently. In the U.S., the Antideficiency Act's criminal penalties and the Civiletti framework make shutdowns mandatory when appropriations lapse.

Historical context: Since 1976, there have been 20 funding gaps, leading to 10 full shutdowns—including closures lasting 35 days (2018-2019), 21 days (1995-1996), and 16 days (2013).

What the Administration Cannot Do During a Shutdown

A shutdown does not provide the administration with any new or additional legal authority. In fact, because of the lapse in funding, many administrative functions cannot be performed because they do not meet the Antideficiency Act exception criteria.

Why this matters: Shutdowns restrict administrative flexibility. Agencies cannot use a shutdown period as an opportunity to reorganize, implement reductions in force, or make other non-emergency administrative changes. The Antideficiency Act's exception criteria create a bright line: only activities protecting life and property, constitutionally required, or explicitly authorized by statute can proceed.

This limitation exists to prevent agencies from using funding gaps to circumvent normal administrative procedures that require appropriated funds to implement properly.

How Shutdowns End

Shutdowns end when Congress passes and the President signs one of three things:

1. Full-Year Appropriations Bills

Congress passes the 12 appropriations bills (or an omnibus combining them) providing full-year funding. This is the "normal" outcome—but increasingly rare. Congress hasn't passed all 12 bills by October 1 since 1997.

Timeline: Days to weeks (if bills are ready) or months (if significant negotiations needed).

2. Continuing Resolution (CR)

Congress passes a short-term CR extending prior year funding levels. This doesn't resolve the appropriations fight—it just delays it.

What is a Continuing Resolution? A CR is an appropriations bill that uses the amounts, terms, and conditions from a previous funding bill as its base. While many CRs are short-term (bridging the gap between October 1 and enactment of full-year bills), a CR can fund the government for an entire fiscal year, as was the case in FY2025.

Typical duration: Days, weeks, or months. Congress often passes multiple CRs in a single fiscal year. FY2024 operated under four separate CRs before full-year bills passed in March.

3. Omnibus or "Minibus" Appropriations

Congress combines multiple appropriations bills into one package. An "omnibus" includes all 12 bills. A "minibus" includes several bills.

Example: FY2024 ended with two minibus packages in March—one with 6 bills, one with 6 bills.

What Happens After Funding Resumes

Immediate restart:

• Agencies have 0.5 to 4 hours to notify employees and reopen facilities
• Excepted employees finally get paid for work already performed
• Non-excepted employees return to work

Catching up:

• Agencies face backlogs: Grant applications, contract awards, permit approvals, regulatory reviews
• Some work can never be recovered (missed inspections, cancelled conferences, stopped research)
• Takes weeks or months to return to normal operations, including processing back pay for hundreds of thousands of employees

What's Next

Next week: We'll pick up where Monday's post left off with "How Appropriations Work"—duration, the budget authority → obligations → outlays timeline, and formula vs discretionary grants, and what happens during CRs.

References

1. U.S. Government Accountability Office (GAO), Principles of Federal Appropriations Law ("Red Book"), 4th Edition, Chapter 6: Availability of Appropriations: Time. Available at: https://www.gao.gov/legal/appropriations-law/red-book

2. Congressional Research Service, "Shutdown of the Federal Government: Causes, Processes, and Effects" (Updated January 2021), R42647.

3. Congressional Budget Office, "The Effects of the Partial Shutdown Ending in January 2019" (January 2019). Available at: https://www.cbo.gov/publication/54937

4. Government Employee Fair Treatment Act of 2019, Pub. L. 116-1 (guarantees back pay for federal employees during shutdowns).

5. Office of Personnel Management, "Furloughs and Shutdowns." Available at: https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/