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Trump Admin Threatens No Back Pay for Federal Workers in Shutdown
Sandy Verma | October 8, 2025 5:24 AM CST

Trump Admin Threatens No Back Pay for Federal Workers in Shutdown/ TezzBuzz/ WASHINGTON/ J. Mansour/ Morning Edition/ The Trump administration warned Tuesday that federal workers furloughed by the ongoing government shutdown may not receive back payreversing years of bipartisan precedent. A White House memo argues that only Congress can approve repayment, drawing outrage from Democrats and unions representing the more than 750,000 affected employees. The move adds new pressure on lawmakers as the shutdown stretches into its seventh day.

The Capitol is illuminated at dawn in Washington, Monday, Oct. 6, 2025. (AP Photo/J. Scott Applewhite)

Shutdown Quick Looks

  • Duration: Day 7 of government shutdown
  • Workers Impacted: 750,000+ furloughed or working without pay
  • New Memo: White House says no guaranteed back pay
  • Previous Law: 2019 measure had ensured back pay after shutdowns
  • Key Players: Trump, Speaker Mike Johnson, Sen. Patty Murray
  • Democrats’ Demand: Protect health subsidies, restore worker protections
  • Republicans’ Push: Reopen government without concessions
  • Quote: “There are some people that don’t deserve to be taken care of.” — Trump
The Capitol is illuminated at dawn in Washington, Monday, Oct. 6, 2025. (AP Photo/J. Scott Applewhite)

Trump Admin Threatens No Back Pay for Federal Workers in Shutdown

Deep Look

WASHINGTON — The Trump administration warned federal employees on Tuesday that back pay is not guaranteed once the government shutdown ends — a sharp break from established policy that could leave hundreds of thousands of workers without compensation for missed paychecks.

A new memo circulated by the White House Office of Management and Budget (OMB) states that repayment for furloughed workers must be explicitly approved by Congresseven though a 2019 law signed by Trump requires automatic back pay following a lapse in federal funding.

The announcement, coming on the seventh day of a shutdown that has idled agencies across Washington, was immediately condemned by Democrats and labor advocates as a political tactic to pressure lawmakers into reopening the government on the president’s terms.


A Reversal of Longstanding Policy

Under the Government Employee Fair Treatment Act of 2019federal workers were guaranteed retroactive pay following any shutdown. The measure was enacted after the record 35-day closure during Trump’s first term.

But in the latest OMB memo — first reported by Axios — officials argue that the law’s wording does not automatically trigger payments. Instead, the document claims Congress must approve a new appropriation for worker pay as part of any deal to reopen government.

The memo’s legal reasoning draws on narrow budgetary language, suggesting that the 2019 law only authorized back pay but did not appropriate funds to make it happen.


Political Firestorm on Capitol Hill

The White House move set off immediate backlash on Capitol Hill. Democrats accused Trump and his aides of defying federal law and punishing government employees to force a political win.

Republicans largely defended the memoarguing that the change could increase urgency to end the shutdown.


Federal Workers Left in Limbo

Roughly 750,000 federal employees have been furloughed or ordered to work without pay since the shutdown began. That includes essential personnel such as air traffic controllers, federal law enforcementand active-duty military service members.

In past shutdowns — including the 2013 and 2019 standoffs — workers were reimbursed once government reopenedeven when those closures stretched for weeks. This time, the uncertainty is sowing anxiety and anger among affected families.

Federal employee unions vowed to fight the policy in courtcalling it an illegal interpretation of the 2019 law and a direct assault on public servants.


A Standoff Without an End in Sight

The shutdown stems from a stalemate between the White House and congressional Democrats over a short-term funding bill.

Democrats are demanding that any deal include extensions of Affordable Care Act tax creditswarning that their expiration could send insurance premiums soaring for millions of Americans. Republicans have rejected those terms, saying the issue can be revisited later.

As of Tuesday, neither side appeared close to an agreement — and Trump’s latest move added a new layer of uncertainty for federal workers hoping for relief.


What Happens Next

Without back pay, the economic impact of the shutdown could deepen. Federal employees collectively spend billions in local economies each weekand any loss of income could ripple through housing markets, retail, and public services.

Economists warn that even a two-week shutdown without guaranteed back pay could shave up to 0.2% off quarterly GDPwhile morale across federal agencies continues to plummet.


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