Both shutdowns and federal funding gaps are modern phenomena. Funding gaps only began happening after Congress gave itself deadlines to pass federal budgets via the Congressional Budget Act of 1974. The first federal funding gap occurred two years later in 1976 when President Gerald Ford vetoed a bill to finance the Departments of Labor and Health, Education and Welfare. After that, there were five more funding gaps under President Jimmy Carter. However, neither Ford nor Carter’s budget gaps triggered any shutdowns.
Carter’s attorney general, Benjamin Civiletti, was the man who changed all that. In 1980 and 1981, he issued legal opinions arguing that when there is a gap in federal funding, the affected parts of the government needed to stop all non-essential functions. Since then, the government has shut down 10 times in response to funding gaps.
Here’s a breakdown of each shutdown.
1. November 20–23, 1981
President Ronald Reagan triggered the first government shutdown when he vetoed a funding bill because he thought it should have cut more from domestic spending. As a result, the U.S. government furloughed 241,000 federal employees. Like most of the early shutdowns, this one ended after only a few days.
2. September 30–October 2, 1982
The next year, Congress caused another shutdown by missing the deadline to pass a government spending bill, even though it had already agreed on the terms for the bill. The New York Times reported that Congress missed the deadline because both major parties had events they didn’t want to miss: Republicans were attending a White House barbecue and the Democrats had a fundraising dinner.
While Congress didn’t anticipate the funding gap would last long enough to trigger shutdown procedures, there was confusion about this and some agencies sent federal employees home. The next three funding gaps in 1982, 1983 and 1984 did not lead to federal shutdowns, but another one in 1984 did.
3. October 3–5, 1984
The U.S. government had two back-to-back funding gaps in 1984: one from September 30 to October 3, and another from October 3 to 5. Congress and President Reagan averted a shutdown during the first gap by passing a temporary extension, but then missed their new deadline again, triggering a brief, half-day shutdown in which the government furloughed around 500,000 employees.
Democrats conceded to many of Reagan’s demands in the bill that ended the shutdown. The bill included temporary funding for the Contras, a group the CIA had recruited and organized to fight the socialist Sandinista government in Nicaragua.
4. October 16–18, 1986
The 1986 shutdown played out much like the one in 1984: the government furloughed about 500,000 federal employees for half a day, and Democrats conceded to Reagan’s demands in order to end the shutdown.
The last funding gap during Reagan’s presidency happened in December 1987, but Congress averted a shutdown by quickly passing a bill that again provided funding to the Contras. This was just months after Congress had held hearings on the Iran-Contra Affair.