The new fiscal year (FY) begins on October 1, 2023, and Congress has so far enacted none of the 12 appropriations bills setting discretionary spending levels. Lawmakers have until midnight on the final day of the fiscal year – September 30 – to enact legislation to fund the programs covered by the appropriations process, or the government will shut down. 

 

A stopgap spending bill known as a “continuing resolution” (CR) would allow lawmakers more time to negotiate full details of an appropriation plan and provide temporary funding for the federal government. 

 

A shutdown in FY 2024 would affect all federal activities covered by discretionary appropriations, as opposed to the most recent FY 2019 shutdown that began in late 2018 and extended into early 2019 that affected only departments and agencies covered by the seven appropriations bills that Congress had not yet enacted.

 

If Congress is unable to take either of these actions, large parts of the federal government will shut down beginning on October 1. Government shutdowns can harm nonprofits and the communities they serve by causing delays in nonprofits’ payments from federal agencies and creating disruption in the delivery of federal benefits.

 

While Congress and the White House agreed to spending levels in June as part of the Fiscal Responsibility Act, both chambers appear to be ignoring that agreement, with the Senate proposing significantly more spending, and the House asking for greater spending cuts. Negotiations are more challenging than usual this year because a small group of House members are poised to block any spending plan or continuing resolution that does not include severe spending cuts and controversial policy provisions that are unlikely to meet the Senate’s approval.

 

Below are links that explain in more detail the consequences of a federal government shutdown: 

What is a government shutdown and why are we likely to have another one?

 

https://www.crfb.org/papers/government-shutdowns-qa-everything-you-should-know