In almost every case where the body will lie in state in the Rotunda of the Capitol the federal agencies in the immediate DC downtown area are closed.
Streets are closed when the plans are to move the body up or down the grand avenues (Constitution or Independence).
George Bush closed the entire government nationwide including the US Postal Service, an independent executive agency. He did so under a claim to authority under the Constitution. I am not sure if he closed TVA.
Just about every President's passing will be noted in some manner, and for each and every federal employee who works in the ceremonial core in D.C. a former President is readily considered a "banked holiday".
On the other hand, if we didn't get those guys out of the way others would not be able to come and pay their respects. It's probably a fair trade for everyone!
An historic note ~ I too served on the "border", but back in the late 1960s. The Russians invaded Czechoslovakia right across from where I was located. Saw many things. Glad Ronaldus Magnus, Baroness Thatcher and former Premier Gorbachov elected to agree to eliminate it. That border is much better as a memory than as a reality.