US Government officially shuts down: Donald Trump prepares to make ‘irreversible’ changes as money runs out

The United States has entered a government shutdown, a bizarre occurrence that throws the country into a state of chaos, something that Republicans and Democrats usually try to avoid.

Democrats had been pushing for more funding for post-COVID-19 health insurance subsidies, which were due to expire, and did not budge.

With the Republicans refusing to cave, the US Government has now run out of approved funding and has been shut down.

There was no clear path out of the impasse, while agencies warned that the 15th government shutdown since 1981 would halt the release of a closely watched September employment report, slow air travel, suspend scientific research, withhold pay from US troops and lead to the furlough of around 800,000 Federal workers at a daily cost of $US400 million ($A600 million).

At issue on the Government funding front is $US1.7 trillion ($A2.6 trillion) for agency operations, which amounts to roughly one-quarter of the Government’s total $US7 trillion ($A10.6 trillion) budget. Much of the remainder goes to health and retirement programs and interest payments on the growing $US37.5 trillion ($A57 trillion) debt.

Independent analysts warn the shutdown could last longer than the budget-related closures of the past.

As the countdown edged closer to the midnight deadline (2pm AEST), US President Donald Trump welcomed the shutdown, saying it would force him to use special powers to create “irreversible change”.

Mr Trump said the shutdown was likely as Democrats were refusing to “bend”.

“Nothing is inevitable, but I would say it’s probably likely,” Mr Trump said from the Oval Office.

“I didn’t see them bend even a little bit.”

“Now, with that being said, we can do things during the shutdown that are irreversible, that are bad for Democrats and irreversible by them, like cutting vast numbers of people out... cutting programmes that they like,” he added.

Mr Trump said that Democrats want to give “Cadillac” medical care to illegal immigrants, “open borders” and “men playing women’s sport”.

What is a US Federal Government shutdown?

In the United States, the Government’s financial year starts on October 1 and ends on September 30.

For Government services in the new fiscal year to go ahead, Congress must approve/ reach an agreement for spending, something that has ground to a halt.

As an agreement was not made, government agencies will now begin shutting down, services will be disrupted or halted, while some agencies will be reduced to essential functions only.

This shutdown is expected to impact 800,000 Federal Government employees, with some of those expected to be stood down without pay until an agreement is reached.

Employees working across some services, including social security, the US postal service, immigration and air traffic control, will be forced to continue working, without pay, with back pay possibly made once the Government is reopened for business.

National parks close during shutdowns, visitor centres at federal government office buildings, including the White House and government-operated museums.

Agencies are frantically putting plans into place for exactly what will and won’t shut, with imminent announcements expected.

Government shutdown impact on US travel

Airports remain open during a shutdown, but staffing becomes an issue.

At airports, visitors should expect longer lines and wait times as staffing numbers reduce. The issue is not just that many government functions stop, especially for the 800,000 people who face no income until an agreement is made.

Historically, this has forced workers with children to stay at home and look after dependents instead of going to work.

Tour companies also feel the brunt despite not being an arm of the US Government, as parks, museums, visitor centres and more shut down, with access to these locations often prohibited.

With no access to some of the United States’ most popular tourist attractions, the flow-on effect hits businesses hard, including those who run businesses around those attractions.

How long a shutdown could lasts is, at this point, anyone’s guess.

Mr Trump is no stranger to a shutdown. During his first term as US President, he oversaw the longest shutdown in US history, which lasted 35 days.

Last shutdown was due to the $US5.7 billion needed to fund Mr Trump’s prized US -Mexico border wall. It took 35 days for Mr Trump to back down and allow the US Government to reopen, later funding his wall by declaring a national emergency.

During the 2018-2019 shutdown, many US Government workers missed out on three pay cycles, impacting their ability to pay bills, make mortgage repayments and even buy food.

The last shutdown cost the US economy an estimated $US11 billion.

- with Reuters