Number: RL34680 Title: Shutdown of the Federal Government: Causes, Processes, and Effects Authors: Clinton T. Brass, Government and Finance Division Abstract: When federal agencies and programs lack appropriated funding, they experience a funding gap. Under the Antideficiency Act, they must cease operations, except in emergency situations. Failure of the President and Congress to reach agreement on interim or full-year funding measures occasionally has caused government shutdowns, the longest of which lasted 21 days, from December 16, 1995, to January 6, 1996. Government shutdowns have necessitated furloughs of several hundred thousand federal employees, required cessation or reduction of government activities, and affected all sectors of the economy. This report discusses the causes, processes, and effects of federal government shutdowns, including potential issues for Congress. Pages: 10 Date: September 23, 2008