Jessica Tollestrup
Analyst on Congress and the Legislative Process
The Antideficiency Act (31 U.S.C. 1341-1342, 1511-1519) generally bars the obligation of funds in the absence of appropriations. Exceptions are made under the act, including for activities involving “the safety of human life or the protection of property.” The interval during the fiscal year when appropriations for a particular project or activity are not enacted into law, either in the form of a regular appropriations act or a continuing resolution (CR), is referred to as a funding gap. Although funding gaps may occur at the start of the fiscal year, they also may occur any time a CR expires and another CR (or the regular appropriations bill) is not enacted immediately thereafter. Multiple funding gaps may occur within a fiscal year.
When a funding gap occurs, federal agencies begin a shutdown of the affected projects and activities, which includes the prompt furlough of non-excepted personnel. The general practice of the federal government after the shutdown has ended has been to pay furloughed employees for time missed, even when no work was performed.
Although a shutdown may be the result of a funding gap, the two events should be distinguished. This is because a funding gap may result in a total shutdown of all affected projects or activities in some instances, but not others. For example, when funding gaps are of a short duration, agencies may not have enough time to complete a shutdown of affected projects and activities before funding is restored. In addition, the Office of Management and Budget has previously indicated that a shutdown of agency operations within the first day of the funding gap may be postponed if a resolution appears to be imminent.
During the 35 fiscal years between FY1977-FY2011, 17 funding gaps occurred, ranging in duration from one day to 21 full days. About half of these funding gaps were brief (i.e., three days or less in duration). Of these, most occurred over a weekend, and the disruption in federal operations was minimal.
Almost all of the funding gaps occurred during the first half of the 35 fiscal year period between FY1977 and FY2011. During the 18 fiscal year period covering FY1977-FY1994, 15 funding gaps occurred. However, only two funding gaps occurred during the remaining 17 years, covering FY1993-FY2011.
The most controversial funding gaps since FY1977 occurred in late 1995 and early 1996, when President Bill Clinton and the Republican-controlled Congress engaged in difficult and protracted negotiations over budget policy, resulting in the veto of a continuing resolution and several regular appropriations acts for FY1996. Two funding gaps, amounting to five days and 21 days, ensued leading to the initial furlough of about 800,000 federal employees.
As of the date of this report, there have been no funding gaps since the two that occurred during FY1996.
Date of Report: April 20, 2011
Number of Pages: 9
Order Number: RS20348
Price: $19.95
Follow us on TWITTER at http://www.twitter.com/alertsPHP or #CRSreports
Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.
Analyst on Congress and the Legislative Process
The Antideficiency Act (31 U.S.C. 1341-1342, 1511-1519) generally bars the obligation of funds in the absence of appropriations. Exceptions are made under the act, including for activities involving “the safety of human life or the protection of property.” The interval during the fiscal year when appropriations for a particular project or activity are not enacted into law, either in the form of a regular appropriations act or a continuing resolution (CR), is referred to as a funding gap. Although funding gaps may occur at the start of the fiscal year, they also may occur any time a CR expires and another CR (or the regular appropriations bill) is not enacted immediately thereafter. Multiple funding gaps may occur within a fiscal year.
When a funding gap occurs, federal agencies begin a shutdown of the affected projects and activities, which includes the prompt furlough of non-excepted personnel. The general practice of the federal government after the shutdown has ended has been to pay furloughed employees for time missed, even when no work was performed.
Although a shutdown may be the result of a funding gap, the two events should be distinguished. This is because a funding gap may result in a total shutdown of all affected projects or activities in some instances, but not others. For example, when funding gaps are of a short duration, agencies may not have enough time to complete a shutdown of affected projects and activities before funding is restored. In addition, the Office of Management and Budget has previously indicated that a shutdown of agency operations within the first day of the funding gap may be postponed if a resolution appears to be imminent.
During the 35 fiscal years between FY1977-FY2011, 17 funding gaps occurred, ranging in duration from one day to 21 full days. About half of these funding gaps were brief (i.e., three days or less in duration). Of these, most occurred over a weekend, and the disruption in federal operations was minimal.
Almost all of the funding gaps occurred during the first half of the 35 fiscal year period between FY1977 and FY2011. During the 18 fiscal year period covering FY1977-FY1994, 15 funding gaps occurred. However, only two funding gaps occurred during the remaining 17 years, covering FY1993-FY2011.
The most controversial funding gaps since FY1977 occurred in late 1995 and early 1996, when President Bill Clinton and the Republican-controlled Congress engaged in difficult and protracted negotiations over budget policy, resulting in the veto of a continuing resolution and several regular appropriations acts for FY1996. Two funding gaps, amounting to five days and 21 days, ensued leading to the initial furlough of about 800,000 federal employees.
As of the date of this report, there have been no funding gaps since the two that occurred during FY1996.
Date of Report: April 20, 2011
Number of Pages: 9
Order Number: RS20348
Price: $19.95
Follow us on TWITTER at http://www.twitter.com/alertsPHP or #CRSreports
Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.
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