Part 1 — Legal Foundations: How and Why U.S. Government Shutdowns Exist

1.1 Constitutional and statutory roots

In the United States, Congress holds the power of the purse under Article I of the Constitution — only it can appropriate funds for federal operations. A critical statute in this framework is the Antideficiency Act (ADA) which, in its modern form, prohibits federal agencies from obligating or spending money in advance or in excess of an appropriation. (See 31 U.S.C. § 1341(a)(1)(A) & (B), § 1342.) (Government Accountability Office)

Put simply: if Congress fails to appropriate funds (or agencies lack legal authority to spend), federal agencies cannot lawfully continue all operations. The ADA thereby underpins the legal possibility of a shutdown. (Congress.gov)

1.2 The legal interpretation that created modern shutdowns

Although funding lapses have occurred for many decades, they did not always lead to major shutdowns. Prior to around 1980 agencies often continued to operate during a lapse of annual appropriations under the view that Congress did not intend to shut down the government. (History, Art & Archives)

That changed in 1980–81 when the U.S. Attorney General Benjamin Civiletti issued a legal opinion (April 25 1980) interpreting the ADA as requiring agencies to cease operations during a funding gap, except for those activities protected under law (e.g., safety of life or property). (Harvard Law School)

Following that interpretation, a one-day shutdown of the Federal Trade Commission (FTC) occurred on 1 May 1980 after its appropriation lapsed — widely regarded as the first “modern” shutdown under this framework. (Wikipedia)

1.3 “Excepted” activities and agency shutdown policy

The ADA includes an exception: obligations may be incurred for “emergencies involving the safety of human life or protection of property”. (31 U.S.C. § 1342.) (Government Accountability Office)

Following the Civiletti opinions, agencies began categorising their employees and activities as “excepted” (those that may continue during a lapse) and “non-excepted” (those to be furloughed). For example, agencies must draw up contingency plans for a funding gap, identifying which functions must continue to comply with the ADA. (Government Relations)

1.4 Why the U.S. can shut down

The interplay of the following factors enables U.S. shutdowns:

  • Congress must pass annual appropriations bills (or a continuing resolution) by the start of the fiscal year (1 October) for many agency operations.
  • If these appropriations lapse, the ADA (as interpreted) requires agencies to halt all non-excepted operations.
  • Because of the separation of powers and multiple veto points (House, Senate, President), deadlock on appropriations creates a funding gap.
    Thus, a shutdown is not simply a political stalemate — it is the legal consequence of operating without appropriation under the ADA.

1.5 Key insights for later parts

  • Understanding this legal foundation clarifies why some operations continue during a shutdown (essential/excepted) and some stop.
  • Because the U.S. process depends on annual appropriations and legal obligations under the ADA, the shutdown risk is embedded in the budget process itself.
  • International comparisons (in later parts) will show how other systems avoid such “shutdown stops” because they handle funding lapses differently (e.g., through parliamentary supply conventions).

References
Antideficiency Act, 31 U.S.C. §§ 1341–1342, 1511–1519.
U.S. Government Accountability Office (GAO). “Antideficiency Act” (overview). Available at: https://www.gao.gov/legal/appropriations-law/resources (accessed [date of access]).
U.S. House of Representatives, Office of the Historian. “Funding Gaps and Shutdowns in the Federal Government”. Available at: https://history.house.gov/Institution/Shutdown/Government-Shutdowns/ (accessed [date]).
Peterson Foundation. “A Brief History of U.S. Government Shutdowns – and Why Other Countries Do Not Have Them”. Available at: https://www.pgpf.org/article/a-brief-history-of-us-government-shutdowns-and-why-other-countries-do-not-have-them/ (accessed [date]).
Harvard Law School Blog. “Harvard Law Expert Explains Federal Government Shutdowns”. Available at: https://hls.harvard.edu/today/harvard-law-expert-explains-federal-government-shutdowns/ (accessed [date]).

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