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White House suggests some federal workers may not get back pay after shutdown

October 7, 2025

The Trump administration is suggesting that federal workers furloughed during the current government shutdown may not receive back pay once funding resumes, contradicting a 2019 law that guaranteed retroactive compensation. A memo from the Office of Management and Budget claims the law only requires payment for essential workers who continued working, not those sent home without pay. This interpretation has sparked significant backlash from Democratic lawmakers who insist it violates the law, while some Republicans have also expressed skepticism about the approach.

Who is affected

  • 750,000 federal employees currently foregoing their regular pay
  • Furloughed federal workers specifically (those temporarily asked not to report to work)
  • Federal employees deemed essential who are required to continue working during the shutdown

What action is being taken

  • The Office of Management and Budget is circulating a memo stating furloughed workers may not be entitled to back pay
  • Senate Republicans and Democrats are putting forward competing resolutions for reopening the government
  • Democratic lawmakers are criticizing the memo as illegal
  • Some Republican lawmakers are expressing skepticism about the administration's approach

Why it matters

  • The interpretation contradicts a 2019 law that was specifically designed to guarantee back pay for all federal workers affected by shutdowns
  • It creates financial uncertainty for hundreds of thousands of federal employees
  • It introduces a new point of contention in the ongoing shutdown negotiations
  • It represents a departure from how previous shutdowns have been handled regarding worker compensation
  • It could potentially be used as leverage to pressure Democrats to pass Republicans' "clean" legislation

What's next

  • No explicit next steps stated in the article

Read full article from source: BBC