In a stunning reversal of long-standing policy, the Trump administration has warned that there is no guaranteed back pay for federal workers furloughed during the ongoing government shutdown—throwing the futures of roughly 750,000 employees into sudden uncertainty. The announcement, made public through a series of memos and public statements on October 7, 2025, marks a sharp departure from the expectations set by the Government Employee Fair Treatment Act (GEFTA) of 2019, a law widely believed to guarantee retroactive compensation after any lapse in federal funding.
For decades, federal employees affected by government shutdowns have operated under the assumption that, while their paychecks might be delayed, they would eventually be made whole once Congress restored funding. That assumption was codified in 2019, when President Donald Trump signed GEFTA into law after the longest shutdown in U.S. history. The law amended the Antideficiency Act, requiring that both furloughed and excepted employees "shall be paid" for the duration of a shutdown "at the earliest date possible" after it ends.
But this week, the Office of Management and Budget (OMB) circulated a draft legal opinion that upends this understanding. As reported by Axios and confirmed by Federal News Network, the draft memo argues that the 2019 law does not automatically guarantee back pay. Instead, it claims that any compensation for furloughed workers must be explicitly included in the spending bill Congress passes to end the shutdown. Without that language, OMB contends, furloughed employees could be left without any retroactive pay at all.
"There are some people that don’t deserve to be taken care of, and we’ll take care of them in a different way," President Trump said during a White House event, according to the Associated Press. Pressed by reporters to clarify whether all furloughed workers would receive back pay, Trump replied, "It depends on who we’re talking about." He added, "I follow the law, and what the law says is correct." This stance, echoed by senior administration officials, suggests a willingness to use the threat of withheld pay as leverage in ongoing budget negotiations with congressional Democrats.
The OMB memo, prepared for Director Russ Vought and first reported by Axios, lays out the administration’s rationale in technical terms. It points to language in GEFTA stating that retroactive pay is "subject to the enactment of appropriations Acts ending the lapse." According to OMB, this phrase means Congress must specifically appropriate funds for back pay each time the government reopens, rather than GEFTA itself serving as a standing appropriation.
Not everyone agrees with this interpretation. Legal experts and federal employee advocates have been quick to push back. Kevin Owen, a partner at Gilbert Employment Law, told Federal News Network, "I interpret that last clause as triggering when the payment will go out—not if the payment will go out. I don’t believe the court will interpret that last clause to be the exception that swallows the rule." Nekeisha Campbell, a labor attorney with Alan Lescht & Associates, argued to Axios that "there is no legal authority to support that interpretation of the statute."
The American Federation of Government Employees (AFGE), the largest union representing federal workers, called the White House’s new legal opinion "an obvious misinterpretation of the law." AFGE National President Everett Kelley said, "It is also inconsistent with the Trump administration’s own guidance from mere days ago, which clearly and correctly states that furloughed employees will receive retroactive pay for the time they were out of work as quickly as possible once the shutdown is over."
Discrepancies have also emerged within the administration itself. While OMB’s October 3 update to its shutdown guidance removed references to the 2019 law guaranteeing back pay, the Office of Personnel Management (OPM) continues to cite GEFTA as providing retroactive pay for furloughed employees. OPM’s September guidance states that the law "provide[s] retroactive pay for Federal employees affected by a lapse in appropriations as soon as possible after the lapse in appropriations ends." An OPM spokeswoman declined to comment on the conflicting guidance.
The political stakes are high. House Speaker Mike Johnson, a Republican, acknowledged the uncertainty but suggested that President Trump does not want federal workers to go without pay. "I hope that the furloughed workers receive back pay, of course," Johnson said, according to Federal News Network. "I can tell you, the President believes that as well. You know, I’ve talked about this personally, he doesn’t want people to go without pay." Yet, Johnson also noted that "there are some legal analysts who are saying" repayment may not be necessary or appropriate, though he admitted he had not fully read the OMB memo.
On the other side of the aisle, Democratic lawmakers have blasted the administration’s position. Senator Patty Murray of Washington, the ranking member of the Senate Appropriations Committee, called the move "another baseless attempt to try and scare & intimidate workers by an administration run by crooks and cowards." She insisted, "The letter of the law is as plain as can be—federal workers, including furloughed workers, are entitled to their backpay following a shutdown." Senator Chris Van Hollen, a lead cosponsor of the 2019 bill, declared, "The law is the law. That legislation was signed into law—and there is nothing this administration can do to change that." House Minority Leader Hakeem Jeffries added, "Every single furloughed federal employee is entitled to back pay, period, full stop. The law is clear, and we will make sure that law is followed."
Meanwhile, the government shutdown drags on, now entering its second week with no end in sight. The impasse centers on disputes over health care funding, with Democrats insisting on provisions to prevent a lapse in federal subsidies that could send insurance rates soaring, while Republicans argue the issue can be addressed later. As the stalemate continues, the Congressional Budget Office estimates that the daily cost of lost compensation for furloughed employees is roughly $400 million.
Beyond the immediate financial hardship for workers, the OMB memo signals a broader shift in the balance of power between the executive branch and Congress. As Axios notes, the Trump administration has increasingly asserted executive authority, with OMB Director Vought outlining how mass firings of federal workers could be conducted as a consequence of the shutdown—moves critics say would be illegal. The Supreme Court recently sided with the administration on withholding congressionally authorized foreign aid, further emboldening executive actions.
With both sides dug in and legal experts predicting a court battle if furloughed workers are denied pay, the fate of hundreds of thousands of federal employees hangs in the balance. The coming days will test not only the interpretation of a single law, but also the resilience of the norms and protections that have long defined the federal workforce.
