Federal Budget

Government shutdowns can prove costly to the economy. The Congressional Budget Office reported that the 2018 shutdown cost the economy an estimated $11B, including a permanent $3B loss.

When Congress fails to pass a budget or a temporary funding bill, the government shuts down. In this situation, many federal employees are furloughed and some functions of the government considered non-essential are halted. This video from USA Today discusses the full ramifications of a government shutdown.

The United States Government has shut down 21 times since the modern budgeting process was created in 1976. Take a look at each time this occurred and the duration of the shutdown.

National parks, one of the US government’s most popular services, generally close during government shutdowns. Arizona and Utah both planned to keep their parks open using state funds in the case of a federal shutdown in 2023, due to the importance of park tourism to their respective economies.

In January of 2023, the United States reached the debt ceiling. This Vox article outlined the steps the US Treasury Department took in order to avoid the country defaulting on its debts.

The “debt ceiling,” set by Congress, is the monetary limit to how much debt the United States Government can owe at a given time. Use this Time Magazine guide to learn more about the debt ceiling and its history to understand the debates surrounding it in today’s politics.

What is the current national debt in the United States? What exactly is the debt and what problems can it cause for the nation? This page from the US Treasury Department answers these questions and provides insight into the trends relating to the federal debt.

What is the current national deficit for the United States in this fiscal year? And what exactly is a national deficit? This page from the US Treasury Department answers these questions and provides insight into the trends relating to the federal deficit.

Federal spending is divided into two main categories: mandatory and discretionary. This video goes into more detail about what items of the federal budget fall into each of these categories.

If Congress cannot pass a formal budget, they must rely on what are called “continuing resolutions” to avoid a government shutdown. This helpful guide from the Bipartisan Policy Center outlines how these continuing resolutions are created, implemented, and their impact on the government.