Reagan vetoes spending bill first shutdown of Reagan presidency begins over reduced spending cuts

On November 23, 1981, the first shutdown of President Ronald Reagan's administration begins when he vetoes a proposed appropriations bill. Reagan, a committed conservative seeking to shrink government spending, rejects the bill because it contains smaller spending cuts than he demanded for select departments. The shutdown affects government-wide operations and places 241,000 federal employees into furlough. The impasse reflects Reagan's ideological commitment to reducing the federal government's size and scope, a core theme of his presidency. Economists estimate the one-day shutdown costs taxpayers between $80 million and $90 million in back pay and other expenses. Reagan's veto power and commitment to fiscal conservatism become hallmarks of his early budgetary negotiations with Congress.