Stopgap Funding Bill

The US President Donald Trump recently signed the Stopgap Funding Bill. The bill provides the law makers two more days to sort out few issues in the ongoing negotiations about the 900 billion USD aid package.

What is Stopgap Funding Bill?

A stopgap funding bill is used by the US Government to ensure that it does not run out of funds for running federal programme after the deadline of an Appropriation Act. In a fiscal year, the US Congress passes 12 Appropriation Acts which gives budgetary authority to spend from the US Treasury for specific purposes. These Acts have a deadline and the funds cannot be used to address new obligations after it. When the Congress fails to fund the government, a government shutdown is declared and all non-essential services are stopped.

How does the Federal Funding expire?

The Fiscal year in US begins on October 1. During a fiscal year, the Congress passes twelve annual appropriation acts that provide the budget authority to expend funds from US Treasury for specific purposes. The funds cannot be used to address new obligations. In other words, the funds expire after specified deadline.

What is called Government Shutdown?

The Government Shutdown occurs when the Congress fails to fund the government. In such scenario, the US Government stops all the non-essential services. On the other hand, the essential services such as police departments, armed forces, etc continue of function.

The longest Government Shutdown in the US history happened under the Trump administration when the Government was shut down for thirty-five days between December 2018 and February 2019. The shutdown occurred over a dispute over the border wall funding.

Impacts on the Public

The Government Shutdowns in the United States have resulted in furloughs for several hundred thousand Government Employees. The reduction in Government activities affected various sectors of the economy.

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