United States Federal

Budget and Government

Shutdown
What is
shutdown?
US. Constitution & US.code
- Article 1, section 9, clause 7
No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular
Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time.

Antideficiency Act also know as 31 U.S. Code § 1341

appropriations bill and budget procedure

Types of budget acts

- regular appropriations bills
- continuing resolutions
- supplemental appropriations bills and authorization bills

1. Only Congress may passes a federal budget- us. constitution article 1

2. The budget request includes funding requests for all federal executive departments and independent
agencies.
3. Every states has own budget and budget procedure
4. Budget year = 1 october to 30 september
 Budget procedure
1.President of the United States submits a budget request to Congress and 10 years perspective of state finance. But this is only
proposal for Congress. Legislature may create their budget proposal. Sometimes there are situations when two budget act
project are in Congress (President submit the budget between the first Monday in January and the first Monday in February)

2. Presidential project of budget is referred to Senate and HR committees.

3. By 1april commissions submits a budget resolution to its house

4. Congress has 13 days to passes the budget resolution. This resolution is internal act, don't need president signature and don't
creates law, but has instructions and various budgets amounts.( this resolution is a non obligatory). In case when Congress didn't
pass act, the previous year's resolution remains in force.( Due to it's not a budget, its just resolution and only starts legislation
process in Congress, gives some tips committees and sets budget for Congress)

5. After the resolutions, Senate and HR has a debate about project (project go to the House and Senate Appropriations
Committees and their 12 subcommittees), This panels may give proposals of changes act. Next project back to chambers in final
version

6 The end of procedure in Congress is passed the act by Senate and House of Representatives

7 President signatures appropriations bill 1

 When shutdown may occurs?
1.One of, or both of, Chambers didnt pass budget act before 1 october

2.President doesn't want signature Congress appropriations bills (presidential veto)

+ In this case congress may pass continuing resolutions or try override a presidential veto

In USA has two types of presidential veto.

-Classic veto which may be overrides by Congress

( majority ⅔ members of Senate and HR)

-Pocket veto which is absolute veto + Line-Item Veto uses in singles states
What happens when it's shutdown
- Until 1981 nothing,,dangerous,, happens when appropriations bill has not been
passed before and of fiscal year
- But after opinion of General Attorney, situation has changed. Nowadays any of
federal agency, or other executive branch, cannot spend even cent without bill
permission
- The consequences?
https://www.washingtonpost.com/graphics/2019/business/contractors-shutdown/