Bowles–Simpson Commission 2007–2008 financial crisis 2013 budget sequestration Related events As a result of conflicts between Democratic President Bill Clinton and the Republican Congress over funding for education, the environment, and public health in the 1996 federal budget, the United States federal government shut down from November 14 through November 19, 1995, and from December 16, 1995, to January 6, 1996, for 5 and 21 days, respectively.
A majority of Congress members and the House Speaker, Newt Gingrich, had promised to slow the rate of government spending; however, this conflicted with the President's objectives for education, the environment, Medicare, and public health.
[3] Clinton said Republican amendments would strip the U.S. Treasury of its ability to dip into federal trust funds to avoid a borrowing crisis.
Republican amendments would have limited appeals by death-row inmates, made it harder to issue health, safety and environmental regulations, and would have committed the President to a seven-year budget plan.
The continuing resolution was set to expire on November 13 at midnight, at which time non-essential government services were required to cease operations in order to prevent expending funds that had not yet been appropriated.
Congress passed a continuing resolution for funding and a bill to limit debt, which Clinton vetoed[1][2] as he denounced them as "backdoor efforts" to cut the budget in a partisan manner.
[3] On November 13, Republican and Democratic leaders, including Vice President Al Gore, Dick Armey, and Bob Dole, met to try to resolve the budget and were unable to reach an agreement.
[1] The Clinton administration later released figures detailing the costs of the shutdown, which included payments of approximately $400 million to furloughed federal employees who did not report to work.
Due to his need to campaign, Dole wanted to solve the budget crisis in January 1996 despite the willingness of other Republicans to continue the shutdown unless their demands were met.
Other impacts included: the closure of 368 National Park sites resulted in the loss of some seven million visitors; 200,000 applications for passports were not processed; and 20,000–30,000 applications by foreigners for visas went unprocessed each day; U.S. tourism and airline industries incurred millions of dollars in losses; more than 20% of federal contracts, representing $3.7 billion in spending, were affected adversely.