Based on data from past closings, roughly 25% of the federal workforce could be permanently cut.
Here’s how it works. When Congress fails to fund the government by Oct. 1, the start of its fiscal year, the Constitution’s Appropriations Clause kicks in: “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.” Federal statutes back this up with serious consequences. Agencies can’t spend unauthorized money or accept free labor except in emergencies involving safety or property. Violations mean firings, fines and up to two years in prison.
Nevertheless, before 1980 agencies treated these restrictions loosely, keeping operations going during funding gaps while minimizing “nonessential operations.” Attorney General Benjamin Civiletti stopped that, ruling agencies must strictly comply with spending limitations in the Antideficiency Act.
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