With another potential government shutdown looming on the horizon — thanks to Elon Musk and Donald Trump itching to set off this crisis — hundreds of thousands of federal employees are facing a stark reality: Their paychecks could suddenly stop arriving. While Congress continues its political chess game, real people wonder how they’ll pay their bills.
The short answer is no. Federal employees don’t receive their regular paychecks during a shutdown. But the full story is more complex and varies depending on whether you’re considered an “excepted” employee or are placed on furlough. Let’s explain exactly what happens to federal workers’ pay when the government closes its doors.
How does a shutdown affect federal employees’ payments?
When a shutdown occurs, federal employees are divided into two main categories, and their fate depends entirely on this classification. “Excepted” employees must continue showing up to work without immediate pay. These are typically essential personnel like air traffic controllers, federal law enforcement officers, and border patrol agents. They’re working for government IOUs, including any overtime they might earn during this period.
Meanwhile, “furloughed” employees are placed in temporary non-duty, non-pay status – essentially an unpaid leave of absence. They’re not allowed to work or even volunteer their services. Think of it as being told to go home without pay, not knowing when you’ll be called back.
Some agencies manage to operate normally during a shutdown. The U.S. Postal Service, for example, continues its operations and regular pay schedules because it doesn’t rely on taxpayer funding. But for most federal workers, a shutdown means entering a period of financial uncertainty.
Thanks to the Government Employee Fair Treatment Act of 2019, there is some good news: Both excepted and furloughed employees are guaranteed to receive back pay once the shutdown ends. The law requires that payments be made at “the earliest date possible” after the government reopens. This provision came after previous shutdowns left workers uncertain whether they would recover their lost wages. Unfortunately, federal employees must keep dealing with their bills until they get their delayed payback.
Sadly, not everyone affected by a shutdown is protected by this safety net. Federal contractors – who often perform critical work alongside government employees – have no guarantee of back pay. When the government reopens, these workers typically find themselves permanently out of the money they would have earned during the shutdown period.
While paychecks stop during a shutdown, not everything grinds to a halt. Federal employees’ retirement benefits through CSRS and FERS continue to be paid, and their health benefits remain active. However, Thrift Savings Plan (TSP) contributions halt until the government reopens and any previously scheduled leave is canceled.
Ironically, the people who cause shutdowns keep getting paid
The most frustrating aspect of government shutdowns is who doesn’t lose their pay: Members of Congress continue receiving their full salaries while their decisions (or indecisions) leave hundreds of thousands of federal workers without paychecks. This means the people responsible for the shutdown face none of the financial consequences they impose on others.
During the longest government shutdown in U.S. history – the 35-day closure under President Trump in 2018-2019 – approximately 800,000 federal employees went without pay. Many were forced to rely on food banks, delay medical procedures, or miss mortgage payments. While they eventually received back pay, the financial damage for many had already been done through late fees, credit score impacts, and accumulated debt. So, as we face the possibility of another shutdown, it’s worth remembering that these political standoffs have real consequences for real people.