U.S. Government Shutdowns and Military Pay
The History of U.S. Government Shutdowns and What Military Members Can Do When Pay Stops
When the U.S. government fails to pass a funding bill on time, it triggers what’s commonly known as a government shutdown. While political headlines often focus on the partisan standoff in Washington, the real impact is felt by everyday Americans—especially service members and federal employees who may find themselves working without pay. Understanding the history of these shutdowns and what support options exist can help military members prepare for potential disruptions.
Challenge Coin Nation: Supporting Those Who Serve
As a veteran-founded company, Challenge Coin Nation was built on the shared experiences of military service and the understanding that those who serve often face challenges far beyond the battlefield. We take pride in honoring that commitment through our products and our purpose. Whether it’s recognizing achievement, celebrating unit pride, or simply showing support for those still in uniform during difficult times—we stand with our brothers and sisters in service. Every coin we create is a small reminder that no one who serves is forgotten.
A Brief History of Government Shutdowns
Government shutdowns as we know them today began after a 1980 legal interpretation by then–Attorney General Benjamin Civiletti, who ruled that federal agencies could not operate without appropriated funds. Prior to that, agencies often continued to function despite late budgets. Since that ruling, the United States has experienced more than 20 funding gaps, though not all resulted in full shutdowns.
Here are some of the most notable examples:
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1981–1996 Era:
During the 1980s and early 1990s, there were nine short shutdowns, most lasting just one to three days. These were typically over policy disputes such as abortion funding, education spending, or defense budgets. -
1995–1996 Shutdown:
The most famous shutdown of the 20th century occurred under President Bill Clinton and Speaker Newt Gingrich. There were two back-to-back shutdowns: the first lasted five days, and the second stretched for 21 days, from December 1995 to January 1996. This was the longest shutdown in U.S. history at the time. -
2013 Shutdown:
Under President Barack Obama, a 16-day shutdown occurred in October 2013 over disagreements surrounding the Affordable Care Act (“Obamacare”). Nearly 850,000 federal employees were furloughed. -
2018–2019 Shutdown:
The most recent and longest government shutdown in U.S. history lasted 35 days, from December 22, 2018, to January 25, 2019. It stemmed from a dispute over border wall funding. While active-duty military personnel continued to work, they did so without pay until funding was restored.
How Long Do Shutdowns Usually Last?
Most shutdowns are brief, often lasting only a few days. However, the pattern has shifted in recent decades as political polarization increased. Modern shutdowns tend to drag out longer due to ideological impasses.
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Average length (since 1980): About 8 days
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Longest on record: 35 days (2018–2019)
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Shortest: 1 day or less, several instances in the 1980s
The duration depends largely on how quickly Congress and the President can agree on appropriations—or at least pass a temporary Continuing Resolution (CR) to keep government operations running.
How Government Shutdowns Affect the U.S. Military
During a shutdown, the Department of Defense remains partially funded because national security operations are deemed essential. However, pay for active-duty military and reservists is not guaranteed unless Congress passes a specific exemption or continues resolution.
Here’s what typically happens:
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Active Duty and Essential Civilians: Continue to work without immediate pay.
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Non-essential Civilians and Contractors: Furloughed until funding resumes.
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Reserve and National Guard Drills: Often postponed unless tied to critical missions.
When funding resumes, back pay is typically granted—but that doesn’t help families struggling with bills during the gap.
Financial Assistance Options for Service Members
Fortunately, there are several programs and resources available to help military members during funding gaps.
1. Military Relief Societies
Each branch has its own non-profit relief organization providing interest-free loans or grants during shutdowns:
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Army Emergency Relief (AER)
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Navy-Marine Corps Relief Society (NMCRS)
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Air Force Aid Society (AFAS)
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Coast Guard Mutual Assistance (CGMA)
These programs are designed to help with rent, utilities, car payments, and emergency needs when pay is delayed.
2. Banks and Credit Unions
Many financial institutions that serve the military—such as USAA, Navy Federal Credit Union, and Armed Forces Bank—offer early pay advances or zero-interest loans during government shutdowns. Members should contact their bank directly for details, as policies vary.
3. Command Financial Counselors
Every installation has personal financial counselors or command financial specialists who can help set up emergency budgets, negotiate payment deferrals, or find additional local support programs.
4. Community and Base Support
Chaplains, Family Readiness Centers, and even local nonprofits frequently step up to assist with groceries, childcare, or short-term hardship funds when service members’ pay is delayed.
Planning Ahead for Future Shutdowns
While no one can predict when political gridlock will strike, service members can minimize the impact by planning ahead:
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Build an emergency fund equal to one month’s pay.
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Keep track of recurring bills and know which companies offer military payment deferrals.
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Stay informed through official base announcements and Defense Finance and Accounting Service (DFAS) updates.
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Avoid taking on new debt during uncertain funding periods.
Shutdowns may be temporary, but preparation can make the difference between stress and stability.
Conclusion
Government shutdowns are an unfortunate part of modern U.S. politics, often leaving military families in financial limbo despite their ongoing service. From the brief standoffs of the 1980s to the record-long shutdown of 2018–2019, these events reveal the strain political stalemates place on those who serve.
The good news is that the military community has strong safety nets—from relief societies to supportive banks and commands—that can help bridge the gap until funding returns. By planning ahead and staying informed, service members can navigate even the longest shutdowns with resilience and readiness.
About Challenge Coin Nation
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