US government shutdown: What happens and who is affected?

The threat of a US government shutdown has become common in a divided Washington. The clock is again ticking for Congress to pass a government spending bill to stave off a shutdown of large portions of the federal government.

The Republican-led House of Representatives passed the latest spending bill on Tuesday and then adjourned, leaving the Senate with the decision to either take it or leave it. If the spending bill is not approved by Friday, the government will shut down.

This vote comes as President Donald Trump and his adviser Elon Musk continue to make major cuts to government agencies, laying off thousands of federal employees in an attempt combat waste.

What happens if the US government shuts down?

Should Congress fail to fund the government, federal agencies will be required to halt all non-essential operations. Essential functions will continue. This will affect a range of activities, from national parks to passport applications.

Some federal employees will also be told to not report to work. More than 800,000 federal employees were furloughed during the 2013 shutdown, according to the Office of Management and Budget. The furloughs would lead to prolonged waiting times on passport applications and small business loans.

Most federal buildings and attractions – such as the Smithsonian museums in Washington – would be closed. National parks would be open, but the National Park Service would not be able to maintain visitor centres, toilets and roads.

How would a shutdown affect the economy?

A shutdown could also affect the US economy and the nation's credit rating, according to Moody's review of past similar situations.

“A shutdown would be credit-negative for the US sovereign,” the credit ratings agency said to clients.

A government-wide shutdown would reduce economic growth by about 0.15 percentage points for each week it lasts, Goldman Sachs says.

How many times has the government shut down?

The federal government has shut down 21 times over the past five decades. The most recent shutdown was also the longest.

From December 2018 to January 2019, during his first term in office, Mr Trump forced a government shutdown to receive funding for the US-Mexico border wall. That ended after 35 days without any such funding.

It was one of three shutdowns to have happened during Mr Trump's term. The first lasted for three days, and the second only for a few hours.