Budget Process in the USA: Shutdown as a Tool of Inter-Party Struggle

In the United States, a complex process has been formed for the annual adoption of the federal budget for the next fiscal year starting on October 1. The House of Representatives and the Senate must coordinate and approve 12 bills on appropriations for the main areas of government activity for the next fiscal year, and the president must sign them by September 30. If the appropriations bills are not passed, the activities of government institutions are suspended (shutdown). Congress last completed the budget approval process before the start of the fiscal year in 1997. Since then, Congress has resorted to continuing resolutions every year to avoid a shutdown. An analysis of the budget debate in Congress during the Joe Biden administration shows how the threat of a shutdown is used in the political struggle between the two parties in conditions of divided government. The problems and risks associated with shutdowns and continuing resolutions for the socio-economic development of the United States are also analyzed.

shutdown, federal budget, discretionary spending, mandatory spending, continuing resolution