A government shutdown occurs when a political impasse over proposed appropriation bills results in the lapse of funding. Federal agencies must curtail operations, furlough non-essential employees, and retain only those required for the protection of human life or property, including air traffic controllers, TSA agents, and law enforcement officers.
The last shutdown lasted 21 days, and the loss of critical services was costly to families, businesses, and our national security. It also undermined the public’s trust in government, and the Congressional Budget Office estimates that the economy lost $11 billion in gross domestic product (GDP) that it never fully recovered.
This time around, it’s expected to be even worse. The last shutdown was triggered by disagreements over funding for a border wall, and the current standoff is over how to extend Affordable Health Care subsidies. The Trump administration has called for a short-term extension of those subsidies, but Democrats have refused to negotiate.
Government contracting firms have been hit hard by a prolonged lapse in funding. Many of them rely on federal contracts for essential work like providing IT support, building and maintaining facilities, performing research, and delivering services for veterans’ programs, emergency management, rental assistance, disaster relief, and food assistance to women, children, and families. These firms are not only mission partners, but they also employ over a million Americans who depend on steady paychecks. Shutdowns destabilize these workforces and damage the national economy. They’re an unnecessary risk that Congress should take no longer.