Understanding the theater behind government shutdowns—and why they have nothing to do with America actually running out of money

We’ve all seen it play out like clockwork: the breathless countdown to a “government shutdown,” politicians pointing fingers across the aisle, essential workers wondering if they’ll get paid, and the American people watching another episode of Washington’s favorite reality show.

But here’s what most people don’t realize: government shutdowns have absolutely nothing to do with whether the United States has money in the bank.

Let me say that again, because it’s the most important thing to understand about this entire circus: When the government “runs out of funding,” it’s not because the Treasury is empty. It’s because Congress hasn’t given federal agencies permission to spend money that already exists.

The Authorization vs. Reality Gap

Think of it this way: Imagine your employer deposits your paycheck into your account every two weeks like clockwork. The money is there. Your bank balance is healthy. But now imagine you need written permission from your boss to actually access that money—and your boss keeps “forgetting” to sign the authorization form until the last possible second, sometimes past the deadline.

That’s essentially what happens with government funding.

The U.S. government collects revenue continuously through taxes, fees, and other sources. That money flows in regardless of whether Congress passes an appropriations bill. But federal agencies can only spend money when Congress explicitly authorizes them to do so through the appropriations process. No authorization? No spending—even though the money is sitting right there.

This is why the term “government funding” is somewhat misleading. We’re not funding the government in these battles. We’re authorizing spending that’s already been approved in principle through other legislation.

How We Got Here: From Routine to Routine Chaos

Government shutdowns weren’t always the annual political spectacle they’ve become. For most of American history, when appropriations deadlines were missed, agencies just… kept operating. It wasn’t until a series of opinions by Attorney General Benjamin Civiletti in 1980 and 1981 that the government interpreted the Antideficiency Act to mean agencies must shut down without an appropriation.

Before that? We had funding gaps, sure, but not the dramatic government closures we see today.

Since then, we’ve had over 20 funding gaps, with shutdowns ranging from a few hours to the record-breaking 35 days under the Trump administration in 2018-2019. What was once a rare breakdown in the legislative process has become a regular feature of American governance.

The Legislative Hostage Game

Here’s where the “political tool” aspect comes in.

Congress is supposed to pass 12 separate appropriations bills every year to fund different parts of the government. That’s the normal process. But normal is boring, and boring doesn’t give you leverage.

Instead, what we typically see now is this pattern:

1. Ignore the regular order: Don’t pass those 12 individual bills on time through proper committee review and debate
2. Wait until the deadline: Let it get right down to the wire
3. Bundle everything together: Cram all government funding into one massive “omnibus” or “continuing resolution”
4. Add controversial riders: Slip in policy provisions that could never pass on their own merit
5. Demand concessions: Force the other side to choose between their policy priorities and keeping the government open
6. Blame the other side: When it inevitably becomes a crisis, point fingers

This isn’t governing. This is hostage negotiation where the American people are tied to the railroad tracks.

The shutdown threat becomes leverage for policy demands that have nothing to do with funding levels. Want to defund a particular program? Threaten a shutdown. Want to force through immigration policy? Shutdown threat. Want to extract spending cuts or increases? You know the drill.

The Manufactured Crisis Effect

What makes this particularly galling is the artificial nature of these crises. There’s no economic reality forcing these deadlines. We’re not actually running out of money. The borrowing authority (debt ceiling) is a separate issue entirely.

These are self-imposed deadlines that Congress created and could change at any time.

But changing them wouldn’t serve the political purpose. The crisis is the point. The deadline creates pressure. The pressure forces concessions. The concessions let politicians claim victory. And the cycle continues.

Meanwhile, federal workers become pawns—expected to work without knowing when they’ll be paid, or furloughed without knowing when they’ll return. Contractors lose income they’ll never recover. Critical government services slow or stop. Americans lose faith in their institutions.

All over spending authorization for money the government already has.

Keeping America Hostage

The truly insidious part is how this dysfunction has been normalized. We now expect these shutdown showdowns. News outlets track the “shutdown countdown.” Federal workers make contingency plans as a matter of routine. The American people shrug and assume this is just how government works.

But it’s not how it has to work, and it’s not how it worked for most of our history.

The legislative process is supposed to involve compromise, negotiation, and regular order—committees reviewing budgets, debating priorities, making tradeoffs, and passing bills through both chambers. It’s supposed to happen throughout the year, with plenty of time for deliberation and public input.

Instead, we’ve allowed it to devolve into a series of manufactured cliffhangers where the threat of shutdown becomes the primary legislative tool. It’s governance by crisis, by design.

And who benefits? Certainly not the American people trying to get a passport, or veterans seeking benefits, or small businesses waiting on contracts, or families visiting national parks. Not the workers sitting at home wondering if they should look for other employment.

The only ones who benefit are politicians who can use the spectacle to fire up their base, extract concessions they couldn’t win through normal legislative means, or claim they’re “fighting” for their constituents by bringing the government to the brink of shutdown.

The Bottom Line

The next time you hear about an impending government shutdown, remember: This is a choice, not a necessity. The government has money. Congress controls the authorization to spend it. And every shutdown threat is a deliberate decision to use that authorization as a political weapon.

We’re not being held hostage by reality. We’re being held hostage by a legislative process that’s been weaponized and a political class that’s decided dysfunction is preferable to compromise.

The question isn’t whether America can afford to keep the government running. The question is whether Americans will keep tolerating a system where their government is perpetually one political standoff away from shutting down for no reason other than legislative brinksmanship.

Until we demand better—until we hold our representatives accountable for using basic governance as a bargaining chip—the shutdown theater will continue. Same crisis, different year, same hostages.