The U.S. government is facing two major issues this week: the risk of a government shutdown and the debate over the debt ceiling. These problems could affect millions of people if lawmakers fail to act quickly. Let’s take a closer look at what’s happening.
What Is a Government Shutdown?
A government shutdown happens when Congress doesn’t pass a funding bill before the federal budget runs out. This stops the government from paying for most of its operations, forcing many workers to stay home without pay or continue working without being paid until the shutdown ends.
Government shutdowns can affect many services. National parks may close, passport applications could be delayed, and some federal inspections of food and factories may stop. Social Security and Medicare benefits, along with medical care for veterans, continue during a shutdown, but many federal programs may pause.
This has happened over 20 times since 1976, when the fiscal year was moved to October 1. The most recent long shutdown, in 2018, lasted 34 days and had a significant impact. Lines formed at food banks as government workers missed paychecks, and federal research projects came to a halt. During that shutdown, air traffic controllers and TSA agents still worked, but travelers faced long delays at airports.
What Is the Debt Ceiling?
The debt ceiling is the maximum amount of money the U.S. government can borrow to pay its bills. It works like a credit card limit, but instead of deciding how much to spend, it allows the government to pay for things Congress has already approved, like Social Security checks, military salaries, and public services.
The debt ceiling has existed since World War I and has been raised or suspended many times to avoid financial problems. If it isn’t adjusted, the government might run out of money, which could lead to a default. A default would mean the government could no longer pay its bills on time, which could harm the U.S. economy and even cause global financial trouble.
Why Are These Issues Happening Now?
Both the government shutdown and the debt ceiling debates are part of political disagreements in Congress.
The current funding for the government runs out at midnight on Friday, December 20. Lawmakers have been trying to pass a short-term funding bill to keep the government open, but disagreements between Republicans and Democrats have made this difficult. President-elect Donald Trump recently demanded that Congress suspend the debt ceiling for two more years as part of this funding bill. This proposal, along with his other requests, caused the bill to fail on Thursday night.
The shutdown threat comes just weeks before Trump officially takes office, adding to the tension in Washington. Congress must now scramble to pass a new bill before the deadline. House Speaker Mike Johnson said on Friday morning, “We’re expecting votes this morning, so y’all stay tuned. We got a plan.”
How Could a Shutdown Affect People?
A government shutdown could impact federal workers, the public, and the economy.
- For Federal Workers: Many government employees would be furloughed, meaning they wouldn’t work or get paid during the shutdown. Workers in essential roles, like air traffic controllers and TSA agents, would still work but without pay. In past shutdowns, this caused financial struggles for many workers, including long lines at food banks.
- For the Public: National parks might close, or they could remain open but without services like public restrooms or visitor assistance. Research projects at government labs might stop, and food inspections could be delayed. However, Social Security and Medicare benefits would continue as usual.
- For the Economy: If the shutdown lasts only a few hours, it may not have a big effect. But if it continues for days or weeks, it could cause holiday travel delays, reduce consumer spending, and even create problems in the stock market.
What About the Debt Ceiling?
The debt ceiling debate adds another layer of complication. Currently, the U.S. debt stands at over $36 trillion. If the debt ceiling isn’t raised or suspended by early next year, the government might run out of options to borrow money, leading to severe consequences.
President-elect Trump has pushed for the debt ceiling to be addressed now, while President Biden is still in office. This would allow Republicans to avoid taking full responsibility for raising the debt ceiling when they gain more control in Congress. However, Democrats are unlikely to agree to this, especially since Trump’s economic plans, such as extending the 2017 tax cuts, are expected to add $4 trillion to the national debt over the next decade.
A Look Back at Past Shutdowns
Shutdowns have become more common in recent decades, as political disagreements in Washington have increased. Some of the most notable ones include:
- 1995: A 21-day shutdown occurred when President Bill Clinton and Republican Speaker Newt Gingrich couldn’t agree on spending cuts. This event set the stage for many future political struggles.
- 2013: A 16-day shutdown happened when Republicans in Congress tried to use budget negotiations to block funding for the Affordable Care Act (Obamacare).
- 2018-2019: The longest shutdown in U.S. history lasted 34 days. President Trump refused to sign any funding bills that didn’t include $5.7 billion for a border wall. This hurt his popularity and caused significant disruption.
What Happens Next?
As the Friday night deadline approaches, lawmakers are working to avoid a shutdown. Both the House and Senate need to pass a new funding bill, which would then go to President Biden for approval. Even if a bill is passed, there could be a gap of a few hours before funding is restored, leading to temporary disruptions.
The stakes are high, especially during the busy holiday season. Travelers, government workers, and families relying on federal programs are all watching closely to see if Congress can reach an agreement.
This situation highlights how political disagreements in Washington can affect people across the country, from delaying paychecks to causing longer airport lines. With so much uncertainty, many hope for a quick solution to keep the government running.
This article is based on the following articles:
https://www.nytimes.com/2024/12/19/us/politics/government-shutdown-funding.html
https://www.theguardian.com/us-news/2024/dec/20/federal-government-shutdown
https://www.npr.org/2024/12/20/nx-s1-5235232/debt-ceiling-trump-spending-talks-government-shutdown
Background Information
Understanding the Basics of Government Funding
The U.S. government operates using money collected from taxes, fees, and borrowing. Every year, Congress, which makes laws in the U.S., must pass a budget to decide how this money will be spent on different programs and services. This includes funding for national defense, schools, parks, and public health programs. When Congress can’t agree on a budget or temporary funding, the government risks running out of money and “shutting down.”
To prevent shutdowns, Congress sometimes passes temporary spending bills called “stopgap measures.” These allow the government to continue running while lawmakers work on a longer-term solution. If they don’t reach an agreement, parts of the government stop working, which is called a “government shutdown.”
What Is Congress?
Congress is the branch of the U.S. government responsible for making laws. It has two parts: the Senate and the House of Representatives. Each part plays a role in passing laws and approving the federal budget.
- The House of Representatives has 435 members, with the number of representatives from each state based on its population.
- The Senate has 100 members, with two senators from each state.
For a bill, like the budget, to become law, both the House and the Senate must agree on it. After that, the president must sign it. If they can’t agree, the government can face serious problems, like a shutdown.
What Does the Debt Ceiling Mean?
The debt ceiling is the maximum amount of money the U.S. government can borrow to pay its bills. It works like a credit card limit, but instead of deciding how much to spend, it allows the government to pay for things Congress has already approved, like Social Security checks, military salaries, and public services.
The debt ceiling has existed since World War I and has been raised or suspended many times to avoid financial problems. If it isn’t adjusted, the government might run out of money, which could lead to a default. A default would mean the government could no longer pay its bills on time, which could harm the U.S. economy and even cause global financial trouble.
Donald Trump’s Role and Intentions
Donald Trump, who will become president again in January 2025, has made significant demands during this funding debate. He has called for Congress to suspend the debt ceiling for two more years before he takes office. By doing this, Trump wants the issue resolved while Democrats still control the presidency and the Senate. His goal is to avoid taking responsibility for raising the debt ceiling once he’s in charge, as this move is often unpopular.
Trump has also supported extending the 2017 tax cuts, which would add an estimated $4 trillion to the national debt over the next decade. His approach reflects a broader strategy to push for Republican policies before he officially assumes office. However, Democrats and some Republicans oppose these demands, leading to a deadlock in negotiations.
Why Are These Issues Happening Now?
The current funding for the government runs out at midnight on Friday, December 20. Lawmakers have been trying to pass a short-term funding bill to keep the government open, but disagreements between Republicans and Democrats have made this difficult. Trump’s last-minute demands to suspend the debt ceiling and his rejection of certain spending plans have added complications to an already tense situation.
The political stakes are high. Republicans want to avoid being blamed for a government shutdown, especially during the holiday season. However, Trump’s influence has made it harder for Congress to reach a compromise.
How Could Shutdowns and Debt Ceiling Debates Affect People?
When the government shuts down or struggles to deal with the debt ceiling, it can have real-world effects on everyday people. For example:
- Federal Employees: Many government workers may lose pay temporarily. In past shutdowns, workers like TSA agents and air traffic controllers continued working without pay because their jobs are essential. However, they eventually received back pay when the government reopened.
- Public Services: Services like passport processing, national park operations, and research at government health labs can be paused. Programs that help low-income families, like food assistance, could also face delays.
- The Economy: A shutdown or default can cause uncertainty in the economy. Businesses may spend less, and the stock market may drop if investors lose confidence in the government’s ability to manage its money.
A History of Government Shutdowns
Government shutdowns have become more common in recent years, as political disagreements in Washington have increased. Here are some key points about shutdowns in U.S. history:
- Before 1976: Government shutdowns didn’t exist. Instead, agencies continued running even if Congress hadn’t agreed on funding.
- Modern Shutdowns: The first shutdowns began in the 1980s after new rules required agencies to stop working if they didn’t have funding.
- The Longest Shutdown: The longest shutdown lasted 34 days, from late 2018 to early 2019, when disagreements over funding for a border wall caused a deadlock.
The Role of Political Disagreements
The U.S. has two major political parties: Democrats and Republicans. These parties often have different views on issues like taxes, spending, and borrowing.
- Democrats: Usually support higher taxes on wealthy people and businesses to pay for programs like education, healthcare, and social services.
- Republicans: Often push for lower taxes and less government spending, arguing that too much debt can harm the economy.
Donald Trump’s influence in the Republican Party has made this funding debate particularly challenging. By insisting on certain policies before taking office, he has increased pressure on lawmakers and created additional hurdles for reaching a compromise.
The Importance of Compromise
In situations like this, compromise is key. Lawmakers from both parties need to work together to solve problems like government shutdowns and the debt ceiling. However, political disagreements often make it difficult for them to find common ground.
Understanding these processes can help students see how government decisions affect people’s lives and why cooperation is important for solving national challenges.
Debate/Essay Questions
- Should Congress eliminate the debt ceiling altogether to avoid future political standoffs, or is it a necessary tool to ensure fiscal responsibility?
- Is it fair for President-elect Donald Trump to push Congress to address the debt ceiling before his term begins?
- Why have government shutdowns become more frequent since 1976, and what does this trend say about the state of American politics?
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