Number: RS20348
Title: Federal Funding Gaps: A Brief Overview
Authors: Robert Keith, Government and Finance Division 
Abstract: The interval during the fiscal year when agency appropriations are not enacted into law, either in the form of a regular appropriations act or a continuing resolution, is referred to as a funding gap. When a funding gap occurs, the federal government begins a shutdown of the affected agencies, entailing the prompt furlough of non-emergency personnel and curtailment of agency activities. During the period covering FY1977-FY2008, 17 funding gaps occurred, ranging in duration from one day to 21 full days. About half of these funding gaps were brief (i.e., three days or less in duration), with most occurring over a weekend, and the disruption in federal operations was minimal. In late 1995 and early 1996, President Bill Clinton and the Republican-controlled Congress engaged in difficult and protracted negotiations over budget policy, resulting in the veto of a continuing resolution and several regular appropriations acts for FY1996. Two funding gaps, amounting to five days and 21 days ensued, with about 800,000 federal employees furloughed initially. There have been no funding gaps since the two that occurred in FY1996.
Pages: 5
Date: September 24, 2008