July 21, 2026
The Honorable Tom Cole
Chairman
U.S. House Committee on Appropriations
Washington, DC, 20515
The Honorable Rosa DeLauro
Ranking Member
U.S. House Committee on Appropriations
Washington, DC, 20515
Dear Chairman Cole, Ranking Member DeLauro, and Members of the Committee,
On behalf of National Taxpayers Union, the nation’s oldest taxpayer advocacy organization, we commend you for holding a hearing entitled “Funding Lapses: Analyzing Shutdown Reform.” Government shutdowns are the result of a broken budget process and needlessly disrupt important services, impose avoidable costs on taxpayers, unfairly burden federal government employees, and drag down economic growth. We urge the Committee to consider reforms that reduce these harms, including bipartisan proposals such as the Prevent Government Shutdowns Act of 2026, introduced by Senators James Lankford (R-OK) and Maggie Hassan (D-NH).
Government shutdowns are a symptom of Washington’s broken budget process. Congress has increasingly replaced timely consideration of its regular appropriations work and, instead, it lurches from short-term patches to massive, last-minute omnibus packages that cost too much and leave lawmakers with little time to review them. Political disagreements on spending and policy are inevitable, but too often lawmakers have allowed those disputes to threaten a shutdown in an effort to gain political leverage.
When this happens and appropriations lapse, the Antideficiency Act requires many agencies to suspend activities. This can delay passport applications, small business loans, and even medical research trials. While some employees are furloughed, others deemed “essential” must continue working without pay until lawmakers resolve their differences.
Shutdowns also impose significant and often hidden costs on agency operations and taxpayers. Because federal employees impacted by a funding lapse are guaranteed back pay, taxpayers ultimately cover their salaries while also bearing the costs of lost productivity even before a shutdown as staff time is redirected to contingency planning instead of normal responsibilities. A 2019 report from the Senate Homeland Security and Governmental Affairs Committee estimated that the three previous shutdowns cost taxpayers almost $4 billion, mostly from back pay but with hundreds of millions more in wasted administrative work and lost revenue.
Shutdowns also inflict broader economic harm. The Congressional Budget Office’s analysis of the 2025 funding lapse found that, while much of the delayed economic activity would return after government agencies were reopened, between $7 billion and $14 billion in real GDP would be permanently lost, with the damages increasing the longer a shutdown continues.
The Prevent Government Shutdowns Act would take the prospect of costly shutdowns off the table while prioritizing consideration of the appropriations process in each chamber so that Congress can fulfill its responsibilities. In the event of a lapse in appropriations, this legislation keeps federal agencies open by automatically extending funding at current levels in rolling two-week increments until Congress passes new spending bills. During a funding gap, only appropriations and emergency legislation can be considered, and lawmakers and Cabinet officials are restricted from travel outside Washington.
While the fiscal damage associated with funding lapses is bad enough, federal government shutdowns inflict real harm by eroding public trust in government. In an era of unprecedented fiscal profligacy and partisan brinkmanship in Washington, practical solutions such as the Prevent Government Shutdowns Act are needed more than ever.
Thank you for highlighting this important issue with a full committee hearing. We stand ready to assist the Committee in crafting solutions that put taxpayers first.
Sincerely,
Alexander Ciccone
Policy and Government Affairs Manager