FTC shuts down for one day first true federal agency shutdown following Civiletti opinion

On May 1, 1980, the Federal Trade Commission (FTC) becomes the first federal agency to shut down following Attorney General Civiletti's reinterpretation of the Antideficiency Act. Congress delays FTC appropriations over disagreement about the agency's regulatory powers and investigative scope. Conservative Republicans and business groups criticize the FTC for aggressive monitoring of economic activity. They seek to limit its authority before approving funding. Congress withholds FTC funding to pressure the agency to accept restrictions on its investigative and rule-making abilities. Approximately 1,600 FTC employees are furloughed. U.S. Federal Marshals are deployed to some FTC facilities to enforce closure. The shutdown lasts only one day when President Carter threatens to shut down the entire federal government if Congress does not pass spending bills by October 1. Economists estimate the one-day FTC shutdown costs the government around $700,000, mostly in back-pay for furloughed workers.