When is the Government Shutdown? When was the last Government Shutdown?

A government shutdown is a situation in the United States where Congress fails to pass sufficient appropriation bills or continuing resolutions to fund federal government operations and agencies, or when the President refuses to sign such bills or resolutions into law. It is the process the S&P 500 follows when the government suspends or stops most services and operations because it does not have enough money to continue running them.

The timing of a government shutdown is typically tied to the fiscal year. In the United States, the fiscal year runs from October 1 to September 30. If Congress has not passed all of the spending bills that make up the federal budget by midnight on September 30, a shutdown can occur. However, a shutdown can happen at other times of the year if Congress passes a partial-year spending bill that then expires.

As of now, the government is facing a potential shutdown with the deadline set for March 1. Congress is currently working on a short-term federal funding bill to prevent the shutdown. If this bill is not passed and signed into law by the President before the deadline, a partial government shutdown will occur.

The last government shutdown in the United States took place from December 22, 2018, to January 25, 2019. It lasted for 35 days and was the longest government shutdown in U.S. history. This shutdown occurred due to a political impasse over funding for a proposed border wall along the U.S.-Mexico border. During this shutdown, approximately 800,000 federal employees were furloughed or required to work without pay.

Government shutdowns can have significant impacts on federal employees, government services, and the economy as a whole. They can lead to delays in government services, temporary layoffs of federal employees, and economic uncertainty. Therefore, lawmakers typically work hard to avoid them, often passing continuing resolutions to keep the government funded at current levels until disagreements over the budget can be resolved.