Overview
Federal government shutdowns often result in furloughed workers missing paychecks. In previous shutdowns, Congress has typically passed legislation to provide backpay to affected employees. However, there is no legal guarantee that backpay will be provided after every shutdown.
Latest Developments (October 2025)
The White House is now threatening to deny back pay to furloughed federal workers as a tactic to pressure Democrats to end the government shutdown. This marks a shift from previous shutdowns, including the 2018-2019 closure, which ended with the Government Employee Fair Treatment Act of 2019 guaranteeing back pay for future shutdowns.
Despite this law, the Office of Management and Budget (OMB) issued a draft memo suggesting that only essential workers (military, air traffic controllers, etc.) may be automatically entitled to pay, while furloughed employees would require explicit Congressional approval for retroactive pay. President Trump and administration officials have publicly stated that not all furloughed workers “deserve” back pay, and have threatened layoffs if the shutdown continues. The president also said he will announce which government programs he intends to permanently eliminate amid the shutdown.
Union leaders, Democratic lawmakers, and even some Republicans have criticized the White House stance, arguing that the law guarantees back pay for all federal workers. The Office of Personnel Management (OPM) maintains that furloughed employees should receive retroactive pay. The threat of withholding back pay and layoffs is seen as a negotiating tactic to pressure Democrats, who are demanding permanent extension of Affordable Care Act subsidies as part of a deal to reopen the government.
Staffing shortages among air traffic controllers and other essential workers have led to travel delays at major airports, with some facilities forced to close temporarily due to sick calls. Essential workers must continue working during the shutdown but are not being paid. The administration has also proposed using tariff funds to keep the WIC food assistance program afloat for millions of mothers and children.
Key Points
- No Automatic Backpay: Federal law does not require Congress to provide backpay after a shutdown. The 2019 law was meant to guarantee it, but the White House now disputes this interpretation.
- White House Position: Only essential workers may be automatically entitled to pay; others may need explicit Congressional approval. Layoffs and permanent program cuts are also being threatened.
- Union and Lawmaker Response: Unions, Democrats, and some Republicans say the law guarantees back pay for all federal workers, including those furloughed. Legal challenges are expected if pay is withheld or layoffs occur.
- Political Uncertainty: The decision to grant backpay and avoid layoffs is now a bargaining chip in shutdown negotiations, with health care subsidies a major sticking point.
- Contractors: Federal contractors are rarely included in backpay legislation and often do not receive compensation for missed work.
- Travel Delays: Staffing shortages among air traffic controllers and other essential workers are causing significant travel delays and safety concerns at airports nationwide.
- WIC Program: The administration is using tariff funds to temporarily fund the WIC food assistance program, but long-term funding requires Congressional action.
Implications
- Federal employees should not assume backpay will be granted after a shutdown, despite previous laws and guidance.
- Financial planning is important for those at risk of furlough or layoff.
- Advocacy, union pressure, and legal action may influence Congressional and White House decisions.
- Shutdown negotiations are increasingly using federal workers’ pay, jobs, and key programs as leverage.
- Essential workers face increased stress and risk due to unpaid work and staffing shortages.
Sources
- Office of Personnel Management (OPM)
- Congressional Research Service
- News reports: NPR, The Hill, Washington Post, New York Times, Axios, CNN Politics
- Government Employee Fair Treatment Act (2019)
- White House, Office of Management and Budget (OMB)
- National WIC Association
- Federal Aviation Administration (FAA)
- Statements from President Trump, Speaker Mike Johnson, Senate Minority Leader Chuck Schumer, House Minority Leader Hakeem Jeffries, Sen. Tim Kaine, Sen. Richard Blumenthal, Sen. John Thune, Sen. Thom Tillis, Sen. Mike Rounds, Sen. Eric Schmitt, Sen. Josh Hawley, Rep. Don Beyer
This summary is for informational purposes and reflects the situation as of October 2025.