A government shutdown occurs when Congress fails to pass or the president refuses to sign a spending bill to fund the federal government’s operations. This results in a funding gap that can cause several government functions to be temporarily disrupted. During a shutdown, federal agencies must discontinue all non-essential discretionary functions until new funding legislation is passed and signed into law. Essential services continue to function, as do mandatory spending programs. Here are some of the impacts of a government shutdown:

• Federal employees: Many non-essential government employees are temporarily furloughed during a shutdown, while essential personnel whose funding is not dependent on annual appropriations bills – such as military service members, law enforcement agents, and air traffic controllers – continue to work without pay. During a shutdown, millions of federal employees and military service members do not get paid until it ends. Both groups must pull from savings or find other ways to stretch their dollars, not only until the shutdown ends but until back pay arrives.

• Small businesses: A shutdown halts federal loans to small businesses. During a shutdown, the Small Business Administration stops approving applications for small businesses to obtain loans and loan guarantees, typically $1 billion per month.

• Federal housing loans: Processing Federal Housing Administration (FHA) loans may be delayed due to reduced staffing.

• National parks and museums: During a shutdown, national parks and museums may be closed or have reduced hours.

• Veterans services: During a government shutdown, all VA medical facilities and clinics will remain fully operational. However, VA call centers and hotlines cease to function, and Veterans Benefits Administration public contact services are not available.

• Social Security: Social Security payments to seniors, Americans with disabilities and others would continue to be distributed.

• Federal loans: Federal loans to individuals and businesses may be delayed or halted.

• Federal agencies: Many federal agencies may be closed or have reduced staffing during a shutdown, which can lead to delays in processing applications for passports, small business loans, or government benefits; fewer food-safety inspections; and various inconveniences.

It is important to note that the specific agencies and services affected by a government shutdown depend on the details of the funding legislation in effect at the time of the shutdown.