Authors
Jacqueline Maffucci, Ph.D.
As we enter week four of the government shutdown, the Partnership for Public Service has been getting questions about retroactive pay for federal employees.
Here are some answers to the most common inquiries.
Are all federal employees affected by the government shutdown entitled to retroactive pay?
The Government Employee Fair Treatment Act of 2019 was signed into law by President Donald Trump in January 2019. The bipartisan legislation provides retroactive pay for federal employees affected by a lapse in appropriations and applies to any lapse in appropriations that begins on or after Dec. 22, 2018. This bill was enacted as the government shutdown of 2018-2019 came to an end.
Were federal employees entitled to shutdown back pay prior to the passage of the Government Employee Fair Treatment Act?
Before 1980, it was not common practice to shut the government down during a lapse in appropriations. Between 1980 and 1981, the then-Attorney General Benjamin Civiletti issued two opinion letters to President Jimmy Carter that changed how the executive branch operates during a lapse, putting into effect our current process.
Since 1980, there have been 15 funding gaps. Not all of these have resulted in a full government shutdown. Ten of these have been three days or less, with most occurring over a weekend, minimizing any impact on federal operations. The others ranged from five to 35 days.
It has been the general practice of Congress to pass legislation at the end of a shutdown to grant federal workers back pay. The passage of the fair treatment act legislation codified this practice into law so that Congress does not have to vote on pay every time.
Why does the government provide back pay for federal employees who are not working during a shutdown?
Public servants do not choose to be furloughed from their jobs and should not have to suffer when Congress fails to meet its mandate to pass appropriations bills on time. Providing back pay prevents federal workers from becoming the casualties of a political impasse.
Additionally, agency decisions on which employees to furlough and which to keep working are based on broad criteria and are a function of funding mechanisms. These decisions are not a value judgement on the importance of employees or programs.
Back pay also helps to protect against the economic impact of a shutdown. During the 2018-2019 government shutdown, which lasted 35 days, a slowdown in spending affected private-sector business. The Congressional Budget Office estimated an economic loss of $11 billion during the fourth quarter of 2018 and first quarter of 2019, including $3 billion that the U.S. economy never recovered.
What has the Trump administration said about providing retroactive pay for furloughed federal workers following the 2025 shutdown?
An October 2025 draft memo from the Office of Management and Budget’s general counsel to Director Russell Vought opined that the Government Employee Fair Treatment Act does not automatically ensure retroactive pay to furloughed federal employees, suggesting that Congress must instead appropriate funds for such a purpose.
While the administration has not adopted an official position to withhold retroactive pay from furloughed federal workers, this draft memo and comments from the president suggest that it may be under consideration if such funds are not specifically appropriated in legislation to open the government.
Are federal employees entitled to retroactive pay in 2025?
Even if the administration attempts to prevent furloughed workers from receiving pay, federal workers may still receive their back pay.
Should the administration argue that the Government Employee Fair Treatment Act does not ensure retroactive pay to furloughed federal workers, we expect there to be legal challenges. The OMB draft legal interpretation directly contradicts Office of Personnel Management guidance shared in 2019 and the agency’s 2025 shutdown guidance. Moreover, the draft memo is in clear conflict with the bipartisan congressional intent of the original law and the interpretation of many legal scholars.
For additional resources, visit the Partnership for Public Service’s shutdown webpage.
