Shutdowns and Standstills: The Costs of a Government Gridlock

By: Arsh Naseer

Edited by: Andrew Bongiovanni

Graphic by: Arsh Naseer 


The Crisis

“BUILD THAT WALL! BUILD THAT WALL! BUILD THAT WALL!” 1

The sound of these chants came from thousands of supporters of the presidential candidate, Donald Trump. Candidate Trump had promised his constituents that he would build a wall bordering the United States from Mexico.2 He believed this to be a vital move to protect and strengthen national security, curb undocumented immigration, and reduce the flow of drugs into the country.3 However, the problem arose when this promise spiraled into a crisis that left its mark on the nation. On December 22, 2018, the government officially shut down. Federal employees were laid off and various government services came to a halt. The nation watched as political leaders engaged in a war of words, with blame being cast in all directions. The impact of the shutdown began to ripple through the country, affecting the lives of everyday citizens and the operation of federal agencies. The shutdown lasted for thirty-five days, finally reaching an end on January 25, 2019, when President Trump announced a temporary deal with Congress to reopen the government for three weeks, providing time to find a solution.4 While the nation, its federal employees, and stakeholders breathed a sigh of relief, this public administration crisis raised questions about the already diminishing trust in government, accountability of the executive and legislative branches, and the building blocks of their organizational DNA.

 

The Build-Up

As President Donald Trump was elected to office, he was expected to fulfill his 2016 campaign promise of building an immense wall along the southern border. To this end, he sought $5.7 billion in funding for this wall, emphasizing it as a critical component of his administration’s agenda.5 However, when the Democratic Party regained control of the House of Representatives in the 2018 midterm elections, divided government returned, as the Senate and presidency remained under Republican control. This division ultimately created a split in priorities including budget negotiations.6 The Democratic majority in the House was reluctant to allocate the funds and refused President Trump’s requests for the wall calling it  “immoral, ineffective, and expensive.” 7 As the end of 2018 approached, it became clear that Congress and the President would be unable to reach a consensus on the budget, largely due to the standoff regarding border wall funding. With the House being under democratic control, there was little inclination to allocate the funds sought by the President for the wall. 

As the fiscal year was nearing its end, the government faced the rapidly approaching deadline of September 30th, 2018. A funding bill was needed to keep the government operating. President Trump made it clear that he wouldn’t sign any spending bill that did not include $5.7 billion in funding for the border wall. On December 19, 2018, Congress passed a short-term spending bill that funded most government agencies through February 8, 2019, with a few exceptions––notably those related to homeland security. However, while the bill included some funding for border security, it fell far short of the $5.7 billion requested by President Trump. On December 20th, 2018, President Trump refused to sign the bill, initiating the political standoff, with the government shutdown commencing on December 22, 2018.8

 

The Effects

The shutdown persisted for an unprecedented thirty-five days, becoming the longest in United States history and the implications were both immediate and enduring. The repercussions were widespread, affecting critical institutions and services. Approximately 800,000 federal employees in nine different departments were furloughed, and other federal employees considered essential were forced to work without pay.9  Additionally, the impact extended to several federal agencies including the Departments of Agriculture, Commerce, Justice, Homeland Security, Housing and Urban Development, Interior, State, Transportation and Treasury. The Internal Revenue Service (IRS), immigration courts, social welfare programs, and government infrastructure services all faced disruptions, significantly constraining their ability to provide such services. This, in turn, had a far-reaching impact on citizens who relied on these programs and employees who experienced financial hardships as they were either laid-off, or forced to work without pay.10 Outlined below are the timelines of effects occurring as a result of the government shutdown.11

 

 

Timeline of Effects  

December 22, 2018

Partial Government Shutdown Begins

The Departments of Agriculture, Commerce, Homeland Security, Housing and Urban Development, Interior — which includes national parks — Justice, State, Transportation and Treasury are affected. 

380,000 federal employees are placed on leave without pay, 420,000 essential federal employees (in agencies such as Border Patrol) are obligated to work without pay.12 

 

 

The Food and Drug Administration halts routine food compliance inspections and research activities. The Department of Health and Services implements changes. 7,997 staff (24%) are furloughed. 

•       Indian Health Services halt funds to Tribes and Urban Indian Health programs.

•       National Institute of Health (NIH), National Institute of Environmental Health Sciences (NIEHS), Superfund Research Program (SRP) staff are furloughed. NIEHS suspends fiscal oversight and scientific accountability work for approximately 50 grant awards.   

•       Agency for Toxic Substances and Disease Registry (ATSDR) limits its resources and staff for projects that are not directly related to protection of life and limiting disease progression.  ASTDR halts professional training programs, updating of health exposure assessments and recommendations, and other projects and support to state and local partners.13

Services for Native American Tributes are severely impacted, as $100,000 federal funds per day cannot be met. The Bureau of Indian Affairs furloughs 2,295 (57%) employees. Other federal employees such as police officers were working without pay.14

December 26, 2018

The Federal Emergency Management Agency issues a “stop work” order to all contractors, as they will not be paid.

December 27, 2018

The Securities and Exchange Commission announces limited staff available to respond to emergency situations.15

December 28, 2018

The Department of Agriculture closes its Farm Service Agency county offices, affecting loans/applications to be processed. Farmers lose access to loans, payments, and services.16

The Environmental Protection Agency exceeds fund limit and furloughs 95% of employees. Only essential employees overseeing prevention of public health threats and disaster-response teams remain on the job.

December 30, 2018

The National Park Service suspends services (trash collection, road maintenance, etc.) and plans to close certain parks, losing estimated revenue of $400,000 per day.

January 1, 2019

Scientific advancement research decreases as funds, laboratories, and research have been reduced to a limited number. Time sensitive experiments have been disrupted and postponed.  

The National Oceanic and Atmospheric Administration, including the National Weather Service, has furloughed many workers. 

 

 

The Fish and Wildlife Service’s offices are vacant, and the National Park Service has very few employees remaining. All employees at the

Environmental Protection Agency and NASA have been furloughed.

The National Science Foundation cancels the month’s grant proposal review panels.17

The Alcohol and Tobacco Tax and Trade Bureau halts approvals for new beer labels affecting many brewers and their businesses.18

January 2, 2019

The Smithsonian museums and the National Zoo (located in Washington D.C.) close.

January 3, 2019

The National Gallery of Art closes to the public.

The Federal Communications Commission suspends operations, including the Consumer Complaint Center.

January 4, 2019

Transportation Security Administration (TSA) workers at airports have been working without pay since the beginning of the shutdown and are now refusing to work shifts.19

The Department of Housing and Urban Development sends letters to requesting landlords not to evict residents in housing assistance programs, as funding for them has been halted.

The Department of Agriculture delays publishing major domestic and world crop reports. 

The Interior Department stops accepting new Freedom of Information Act requests.

January 7, 2019

The White House directs the Internal Revenue Service (IRS) to issue tax refunds during the shutdown. Workers who previously were furloughed are requested to process refunds without pay until after the shutdown ends.

Agents within the Securities and Exchange Commission are sparse and working without pay.20

January 8, 2019

The Agriculture Department announces benefits under the Supplemental Nutrition Assistance Program (SNAP) would be provided for the month of February.21

The Hubble telescope in space stops working and is unable to be repaired, as NASA and other federal employees have been furloughed.22

January 11, 2019

Federal workers miss their first paycheck.23

January 12, 2019

Shutdown becomes the longest government shutdown in history.  

Major international Airport (Miami) closes terminal, as security screeners stop working shifts until pay resumes. 

January 14, 2019

Syracuse University reports 42,726 immigration court hearings nationwide have been canceled since the beginning of the shutdown.24

January 15, 2019

Coast Guard workers (estimated 6,000) miss paychecks, as the Department of

Homeland Security’s funding expired on December 21, 2018.25

Furloughed food safety inspectors return to work without pay to resume inspections of some high-risk foods.26

The White House calls back thousands of workers from furlough to issue tax refunds. 

The Federal Aviation Administration recalls 3,113 employees from furlough for inspections and essential work regarding US air travel safety.  Employees will be working without pay.27

January 16, 2019

The U.S. Department of Agriculture reopens Farm Service Agencies and calls back 2,500 employees to work on January 17, January 18, and January 22, to assist farmers with existing loans and to provide 1099 tax documents before the IRS deadline.28

January 25, 2019

Federal district courts run out of funds resulting in civil cases becoming suspended or postponed, and employees continue to work without pay.29

Federal workers miss another paycheck.

Federal workers lose dental and vision health insurance benefits unless they were able to pay premiums directly. 

Increased delays at major airports ensue, as major staffing shortages continue.30

Government Shutdown Ends. President Trump and Congress come to an agreement to reopen the government for three weeks to allow further negotiations on border security and immigration issues.31

                                                                                                                         

Stakeholder Analysis

                 The 2019 government shutdown involved multiple stakeholders, both internal and external, each with varying degrees of influence over the decision-making processes and outcomes. These stakeholders also show varying levels of involvement in how affected they were by the shutdown. Among these stakeholders, several played pivotal roles throughout the shutdown and the aftereffects. Highlighted below are some of the most critical stakeholders.

 

 

Trust in Government

Trust in government has been declining for decades.32 While the trend of declining trust has fluctuated over time, the overall trend is decidedly negative (see figure below), and the 2019 government shutdown had a significant impact on the public’s trust. Thousands of federal employees were left without pay; many businesses and citizens were adversely impacted, as they relied on government services. This crisis only further eroded the public’s already diminished trust in the government. 

                                                     Source: Kettl (2020).33

 

Politics, Performance & Accountability

          Kettl (2020) defines accountability in Politics of the Administrative Process: 8th Edition by reminding readers of the ancient roman phrase “Quis custodiet ipsos custodes?”— “Who is to watch the watchers?” With the President being chief executive, and Congress being there to hold the president accountable, what happens when both the President and Congress are the ones that need to be held accountable? In the crisis of the 2018-2019 Government Shutdown, thousands of federal employees, business owners, and individuals seeking services were all left vulnerable. So how and who holds the government accountable? Kettl broaches the subject by arguing “there is no absolute standard for accountability…Accountability is a relationship and, like all relationships, it constantly changes—and is often full of tension.”34

           In the 2018-2019 Government Shutdown, President Trump was held accountable to fulfill his promise of building a wall by his electors, and that was the guiding motivation behind his decision to refuse signing the spending bill, thus precipitating the shutdown. Second, President Trump was further held accountable during the shutdown by various stakeholders who were deeply involved and affected by the shutdown, including the federal employees who were furloughed and other citizens who were unable to pay rent or other expenses because of the shutdown, among others. The media was pivotal in accountability, as they were the ones to promote and highlight the individuals suffering and seeking justice. Congress brought fiscal accountability. In government, elected officials are held to a standard to ensure funds are spent efficiently, wisely, and in the interest of the public.35 When the House of Representatives refused the requested $5.7 billion, their decision was an example of fiscal accountability in government, as  they saw this request as unjustified and not in the best interest of the people, leading them to refuse the request. 

 

Organizational DNA Application

          There are 4 basic building blocks of organizational DNA: Decision Rights, Motivators, Information, and Structure. These building blocks help understand how government organizations function and how they respond to challenges and crises in the context of the 2018-2019 Government Shutdown. 

  1. Decision Rights:

          Decision-making on budget and appropriations bills, was crucial to the shutdown, as the government shutdown resulted from disagreements between the executive and legislative branches of government regarding budget allocations and the construction of a border wall. It showcases decision rights within the government structure, as the House of Representatives exercised their right to negotiate the spending bill, and the President exercised his prerogative to refuse signature. However, the division of decision rights between Congress and the President in the budgetary process contributed to the shutdown. Each branch claimed authority over budgetary matters, blurring the decision rights within this structure. 

  1. Motivators:

          The 2018-2019 Government Shutdown was a direct result of the key stakeholders and their respective motivations. President Trump, for instance, was motivated to fund the border wall to deliver on a prominent campaign promise, and by his campaign to strengthen national security and immigration control. This led him to request $5.7 billion, and in turn, to decline signing the bill into law when his request was dismissed. Congress, another key stakeholder, was motivated by the significant role they play in the U.S. budget process and by their belief that the request was unjustified. 

  1. Information:

          The government shutdown highlighted the role of information in decision-making. Both the executive and legislative branches relied on different sets of information which influenced their respective positions on the matter. In turn, both President Trump and Congress prioritized different objectives. Overall, the effects of the shutdown disrupted the flow of information from government agencies and external stakeholders who relied on these systems. 

  1. Structure:

The structure of the U.S. government, with its separation of powers between the three branches, influenced the series of events precipitating the shutdown. This structure divides responsibilities for budgetary decisions, contributing to the budget impasse. Additionally, the structure of the U.S. government bared on how many agencies, employees, and citizens were affected. This crisis raises questions about the structure of the government, as it emphasizes the need for a more adaptive government structure that can effectively respond and operate when such matters occur.  

 

Conclusion

          The 2018-2019 United States Government Shutdown, borne out of a political standoff over border wall funding, had lasting impacts on both the United States government and the country as a whole. This crisis further deepened the already shrinking trust in the government, as a plethora of workers became temporarily unemployed or lost their wages, multiple government agencies and services were disrupted, and citizens experienced many downstream effects. The shutdown illuminated multiple challenges associated with holding government accountable  when both the President and Congress are directly involved. It also brought into focus the fundamental components of organizational DNA. The 2018-2019 government shutdown served as a lesson of the critical role structure, trust, and accountability play in the functioning of democracy.  

 


Works Cited

1. LiveNOW from FOX. 2016. “Build That Wall!” Donald Trump Chants After Major Endorsement. YouTube. https://www.youtube.com/watch?v=ZGSAhNZnisk

2. Trump, Donald J. 2015. “Donald Trump Presidential Campaign Announcement Full Speech (C-SPAN).” YouTube, June 16. https://www.youtube.com/watch?v=apjNfkysjbM&themeRefresh=1

3. Trump, Donald J. 2016. “Trump Rally in Anaheim, California 2016.” YouTube, May 25. https://www.youtube.com/watch?v=ZGSAhNZnisk

4. Restuccia, Andrew, Everett, Brian, and Caygle, Heather. 2019. “Longest Shutdown in History Ends After Trump Relents on Wall.” Politico.com, January 25. https://www.politico.com/story/2019/01/25/trump-shutdown-announcement-1125529

5. Trump, Donald. 2019. “Remarks by President Trump After Meeting with Congressional Leadership on Border Security.” National Archives and Records Administration, January 4. https://trumpwhitehouse.archives.gov/briefings-statements/remarks-president-trump-meeting-congressional-leadership-border-security/

6. The New York Times. 2018. “2018 Midterm Election Results.” January 23.

https://www.nytimes.com/interactive/2018/us/elections/calendar-primary-results.html.

7. Public Broadcasting Service. 2018. “Democrats Refuse to Fund Trump’s ‘Immoral’ Wall.” PBS, December 28. https://www.pbs.org/newshour/politics/democrats-refuse-to-fund-trumps-immoral-wall 

8. Al Jazeera. 2019a. “US Government Shutdown: What You Need to Know.” Al Jazeera, January 25. https://www.aljazeera.com/news/2019/1/25/us-govt-shutdown-how-long-who-is-affected-why-did-it-begin

9. Al Jazeera. 2019b. “A Timeline of the US Government Shutdown.” Al Jazeera, January 26. https://www.aljazeera.com/news/2019/1/26/us-government-shutdown-a-timeline

10. Al Jazeera. 2019a. “US Government Shutdown.”

11. Lu, Denise, and Singhvi, Anjali. 2019. “Government Shutdown Timeline: See How the Effects Are Piling Up.” The New York Times, January 9. https://www.nytimes.com/interactive/2019/01/08/us/politics/government-shutdown-calendar.html

12. Davis, J. H., and Cochrane, E. 2018. “Government Shuts Down as Talks Fail to Break Impasse.” The New York Times, December 21. https://www.nytimes.com/2018/12/21/us/politics/trump-shutdown-border-wall.html

13. Office of Budget. 2021. “FY 2019 HHS Contingency Staffing Plan for Operations.” HHS.gov, June 28. https://www.hhs.gov/about/budget/fy-2019-hhs-contingency-staffing-plan/index.html

14. Smith, Mitch, and Turkewitz, Julie. 2019. “Shutdown Leaves Food, Medicine and Pay in Doubt in Indian Country.” The New York Times, January 1. https://www.nytimes.com/2019/01/01/us/native-american-government-shutdown.html

15. Tankersley, Jim, Goldstein, Andrea, and Thrush, Glenn. 2019. “As Government Shutdown Persists, Americans Feel the Bite.” The New York Times, January 8. https://www.nytimes.com/2019/01/07/us/politics/govenment-shutdown-impact-effects.html

16. Healy, J., and Pager, T. 2019. “Farm Country Stood by Trump. But the Shutdown Is Pushing It to Breaking Point.” The New York Times, January 10. https://www.nytimes.com/2019/01/10/us/farmers-trump-administration.html

17. Blinder, Alan. 2019. “Toll on Science and Research Mounts as Government Shutdown Continues.” The New York Times, January 5. https://www.nytimes.com/2019/01/05/us/government-shutdown-science.html

18. Corasaniti, N. 2019. “Now Being Held Hostage by the Shutdown: Your Favorite Craft Brewery.” The New York Times, January 10. https://www.nytimes.com/2019/01/10/nyregion/government-shutdown-craft-breweries.html

19. Thrush, Glenn. 2019. “T.S.A. Screeners, Working Without Pay, Are Calling Out Sick.” The New York Times, January 5. https://www.nytimes.com/2019/01/04/us/politics/tsa-government-shutdown-sick-leave.html?module=inline

20.Tankersley, Goldstein, and Thrush. 2019. “As Government Shutdown Persists, Americans Feel the Bite.”

21. Healy, Jack, Johnson, Kirk, and Taylor, Kate. 2019. “As Government Shutdown Goes On, Workers’ Finances Fray: ‘Nobody Signed Up for This.'” The New York Times, January 8. https://www.nytimes.com/2019/01/08/us/paychecks-government-shutdown.html

22. Witze, Alexandra. 2019. “Hubble Telescope Camera Is Broken – and US Government Shutdown Could Delay Repairs.” Nature News, January 9. https://www.nature.com/articles/d41586-019-00094-0

23. Healy, Johnson, and Taylor. 2019. “As Government Shutdown Goes On, Workers’ Finances Fray.”

24. Syracuse University. 2019. “Cancelled Immigration Court Hearings Grow as Shutdown Continues.” TRAC Immigration, January 14. https://trac.syr.edu/immigration/reports/543/

25. Burke, Melissa. 2019. “Coast Guard Could Miss Next Paycheck If Shutdown Continues.” The Detroit News, January 8. https://www.detroitnews.com/story/news/politics/2019/01/07/coastguard-could-miss-next-paycheck-shutdown-drags/2505035002/

26. Kaplan, Sheila. 2019. “F.D.A. Says It Will Resume Inspections of Some High-Risk Foods.” The New York Times, January 15. https://www.nytimes.com/2019/01/14/health/shutdown-fda-food-safety.html

27. Kaplan, Thomas. 2019. “F.A.A. Recalls Workers to Address Air Safety Concerns.” The New York Times, January 15. https://www.nytimes.com/2019/01/15/us/politics/faa-recalls-air-safety-shutdown.html

28. U.S. Department of Agriculture. 2019. “USDA to Reopen FSA Offices for Limited Services During Government Shutdown.” USDA, January. https://www.usda.gov/media/press-releases/2019/01/16/usda-reopen-fsa-offices-limited-services-during-government-shutdown

29. United States Courts. 2019. “Judiciary to Continue Funded Operations Until Jan. 25.” Uscourts.gov, January 16. https://www.uscourts.gov/news/2019/01/16/judiciary-continue-funded-operations-until-jan-25

30. McGeehan, Patrick. 2019. “Shutdown Sets Off Airport Delays as F.A.A. Announces Staffing Shortages.” The New York Times, January 25. https://www.nytimes.com/2019/01/25/nyregion/airports-shutdown-laguardia-faa.html

31. Restuccia, Everett, and Caygle. 2019. “Longest Shutdown in History Ends After Trump Relents on Wall.”

32. Kettl, Donald F. 2020. Politics of the Administrative Process. 8th ed. CQ Press, 52.

33. Ibid.

34. Ibid.

35. Ibid.

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