Update, 12:45 a.m. Saturday: The U.S. government avoided a prolonged government shutdown after the House and Senate approved a short-term funding bill, sending it to President Biden’s desk for his signature.
As the fight over a federal spending bill went down to the wire, the U.S. faced a looming deadline for a government shutdown that could have began at 12:01 a.m. on Saturday, Dec. 21. That raised questions about what types of services and payments could be impacted if funding lapsed just days before the holidays.
The threat of a shutdown stemmed from controversy over a spending bill to extended funding through March 14, but which fell apart after some Republicans — including President-elect Donald Trump and Elon Musk — objected to billions of dollars in spending that had been added to the bill. A revised version also failed on Thursday before another attempt on Friday finally passed.
Without congressional approval for new spending, federal agencies are typically barred from doling out money, although there are some exceptions, such as activities to protect life and property. At the same time, agencies must make decisions about which workers will stay on the job, which can lead to varying impacts on government operations.
“Shutdowns can be disruptive, leading to delays in processing applications for passports, small business loans or government benefits,” David Wessel, senior fellow in economic studies at the Brookings Institution, wrote earlier this year in a
