Federal Workers Government Shutdown Pay: Back Pay, Furloughs, and Your Rights

A government shutdown creates immediate financial uncertainty for the roughly 2.1 million civilian federal employees across the United States. Whether you are a federal worker trying to understand your rights, a contractor assessing your exposure, or a family member planning around disrupted income, the practical questions are the same: Will I get paid? When will back pay arrive? What can I do in the meantime?

This guide provides a factual, step-by-step overview of how federal worker pay works during government shutdowns, what protections exist under current law, and what financial planning steps you can take before and during a funding lapse. For live status updates on shutdown votes and agency impacts, see our Government Shutdown Tracker.

Do Federal Workers Get Paid During a Government Shutdown?

The short answer is no, not while the shutdown is active. Federal employees do not receive their regular paychecks during a government shutdown, regardless of whether they continue working or are sent home. The reason is structural: when Congress fails to pass appropriations bills or a continuing resolution, federal agencies lose the legal authority to spend money, including on payroll.

However, the impact is not identical for every federal worker. The federal workforce is divided into two categories during a shutdown:

Excepted (essential) employees are required to report to work despite the funding lapse. These workers perform functions deemed necessary for the safety of human life and the protection of property. They continue their duties but do not receive paychecks until Congress passes and the President signs a funding measure. During the 35-day shutdown from December 22, 2018 to January 25, 2019, hundreds of thousands of essential employees worked through two or more missed pay periods before compensation was restored.

Non-excepted (non-essential) employees are furloughed. They are placed on temporary, non-pay, non-duty status and are not permitted to work. Furloughed employees must cease all work-related activity, including checking government email or using government-issued devices, on the day the shutdown begins.

The Government Employee Fair Treatment Act of 2019

Before 2019, back pay for federal workers was not guaranteed by statute. Congress typically passed retroactive pay legislation after each shutdown, but workers had no legal certainty that it would happen. The Government Employee Fair Treatment Act (GEFTA), signed into law on January 16, 2019, changed that. This law ensures that all federal employees affected by a shutdown, both excepted and furloughed, receive retroactive pay for the period of the lapse in appropriations once funding is restored.

GEFTA applies to employees covered under Title 5 of the U.S. Code and certain other categories. It does not require employees to take any special action to claim back pay. Once a funding bill is enacted, agencies process the owed compensation through normal payroll channels. The law was a direct response to the financial hardship experienced by roughly 800,000 workers during the 2018-2019 shutdown, which remains the longest in U.S. history.

Essential vs. Non-Essential Federal Employees

The distinction between essential and non-essential employees is determined at the agency level through contingency plans that each federal department maintains and updates. These plans specify which positions are excepted from furlough based on the functions they perform.

Agencies That Largely Continue Operations

Several agencies and departments retain most or all of their workforce during a shutdown because their missions involve immediate safety, national security, or law enforcement functions:

• Department of Defense (DOD): Active-duty military personnel continue to serve. Civilian DOD employees are split between excepted and furloughed based on their specific roles, but a large share is retained.
• Department of Homeland Security (DHS): Border Patrol agents, TSA screeners, Coast Guard personnel, and immigration enforcement officers remain on duty. For TSA-specific impacts, see our guide on TSA and the government shutdown.
• Department of Veterans Affairs (VA): VA hospitals and medical centers continue operations. Health care staff, including doctors, nurses, and support personnel, remain on duty to provide patient care.
• Federal law enforcement: FBI agents, DEA agents, U.S. Marshals, Secret Service personnel, and federal prison staff (Bureau of Prisons) continue working.
• Federal Aviation Administration (FAA): Air traffic controllers continue managing air traffic, though some administrative and support functions may be reduced.

Agencies That Furlough Most Staff

Other agencies see the majority of their workforce sent home because their functions, while critical to long-term governance, do not meet the immediate safety-of-life threshold:

• Environmental Protection Agency (EPA): During past shutdowns, the EPA has furloughed the vast majority of its approximately 14,000 employees, suspending inspections, enforcement actions, and permit processing.
• Internal Revenue Service (IRS): Most IRS staff are furloughed, leading to delays in tax return processing, refund issuance, and taxpayer assistance services.
• National Park Service (NPS): Rangers, maintenance staff, and visitor services are largely furloughed. Parks may remain physically accessible in some cases, but facilities, restrooms, trash services, and visitor centers close.
• NASA: The majority of NASA's civilian workforce is furloughed, with exceptions for personnel supporting the International Space Station and certain active missions.
• Department of Education: Most staff are furloughed, which can delay student loan processing, grant administration, and civil rights investigations.

Essential vs. Non-Essential Comparison

Federal Contractor Impact During Shutdowns

While federal employees now have a statutory guarantee of back pay, federal contractors occupy a far more precarious position. An estimated 4 million workers are employed by companies that hold federal contracts, and these workers have no blanket legal right to back pay when a shutdown halts their work.

No Guaranteed Back Pay for Contractors

Federal contractors are employed by private companies, not the federal government directly. When agencies shut down and stop issuing task orders or halt work on existing contracts, contractor employees may be told to stop working. Whether they are compensated depends entirely on the terms negotiated in their company's contract with the government and their own employment agreement with their employer.

In practice, this means many hourly contract workers, including janitors, security guards, cafeteria employees, and building maintenance staff at federal facilities, often lose pay with no guarantee of recovery. Salaried contractor employees at larger firms may fare somewhat better if their company has the financial reserves to continue paying staff during short shutdowns, but this is a business decision, not a legal requirement.

Congress has occasionally debated extending back pay protections to federal contractors, but as of 2026, no such legislation has been enacted.

Economic Impact on Small Businesses

Small businesses that depend on federal contracts are particularly vulnerable. Unlike large defense contractors with diversified revenue streams, a small firm with a single federal contract may lose its entire income during a shutdown. The downstream effects include difficulty meeting payroll, paying rent on office space, and maintaining health insurance for employees.

In regions with concentrated federal employment, such as the Washington, D.C. metropolitan area, Northern Virginia, and parts of Maryland, shutdown-related contractor income loss ripples through the local economy. Restaurants, dry cleaners, childcare providers, and other service businesses near federal facilities see reduced demand almost immediately.

SBA Loan Access During Shutdowns

The Small Business Administration (SBA) itself can be affected by shutdowns. During past funding lapses, the SBA has reduced operations, which can delay processing of loan applications, disaster relief funds, and counseling services. Small businesses that might otherwise turn to SBA resources during a cash-flow crisis may find those resources temporarily unavailable or operating at reduced capacity. Businesses in this situation should consider contacting their lender or a Small Business Development Center (SBDC) for interim guidance, as SBDCs are partially funded through non-federal sources and may continue operations.

Government Shutdown Federal Employee Back Pay Timeline

One of the most pressing questions for federal employees during a shutdown is how quickly back pay will arrive once the government reopens. While GEFTA guarantees the payment, it does not specify an exact timeline. In practice, back pay processing depends on the length of the shutdown, the number of affected employees, and each agency's payroll system capacity.

Typical Processing Timeline

After a funding bill is signed into law, agencies generally need one to two standard pay cycles to process retroactive payments. For most federal employees paid on a biweekly schedule, this means back pay typically arrives within one to three weeks of reopening. However, several factors can affect timing:

• Payroll system capacity: Some agencies use shared payroll service providers (such as the National Finance Center or the Defense Finance and Accounting Service), which must process large volumes of retroactive calculations simultaneously.
• Shutdown duration: Longer shutdowns require more complex calculations, especially if the shutdown spans multiple pay periods, includes holiday pay adjustments, or overlaps with benefits enrollment changes.
• Agency-specific factors: Smaller agencies with simpler payroll structures may process back pay faster than large departments with complex pay grades, shift differentials, and overtime calculations.

Historical Examples

2013 shutdown (16 days, October 1-16): Most federal employees received their back pay within the next regular pay cycle after reopening. Because the shutdown was relatively brief and affected a single pay period for most workers, payroll processing was straightforward.

2018-2019 shutdown (35 days, December 22 - January 25): This was a more complex scenario. The shutdown spanned the holiday period and multiple pay cycles. Many employees missed two full paychecks before reopening. After the continuing resolution was signed on January 25, 2019, the Office of Management and Budget directed agencies to process back pay as quickly as possible. Most employees received their first retroactive payment within one to two weeks, though some agencies needed slightly longer to fully reconcile all owed compensation.

January 2018 shutdown (3 days, January 20-22): This brief shutdown had minimal payroll impact. Because it lasted only a weekend and part of a Monday, most employees did not miss a paycheck, and no extended back pay processing was needed.

Financial Planning for Federal Workers During Shutdowns

Even with back pay guaranteed, the gap between when bills are due and when paychecks resume creates real financial pressure. Planning ahead is the most effective way to reduce that stress. Below are practical steps federal employees and their families can take.

Emergency Savings Recommendations

Financial advisors generally recommend maintaining an emergency fund covering three to six months of essential expenses. For federal employees, shutdown risk adds a specific reason to keep at least one full month of expenses in accessible savings. The 2018-2019 shutdown demonstrated that even a five-week lapse can strain households that do not have a cash reserve. Essential expenses to budget for include rent or mortgage payments, utilities, food, transportation, insurance premiums, and minimum debt payments.

Federal Credit Union Options

Many federal credit unions offer specific shutdown assistance programs when a funding lapse occurs. These can include:

• Zero-interest or low-interest emergency loans to cover living expenses during the shutdown period.
• Payment deferrals on existing auto loans, personal loans, or credit cards held with the credit union.
• Fee waivers for late payments, overdrafts, or early withdrawal penalties on certificates of deposit.
• Paycheck advance programs that provide early access to anticipated back pay.

Federal employees should contact their credit union early when a shutdown appears likely, as some programs require enrollment before the shutdown begins. Major federal credit unions, including the Pentagon Federal Credit Union, Navy Federal Credit Union, and the Treasury Department Federal Credit Union, have activated assistance programs in past shutdowns.

TSP Loan Considerations

Federal employees enrolled in the Thrift Savings Plan (TSP) may consider taking a loan from their own retirement account during a shutdown. TSP loans allow participants to borrow from their account balance and repay through payroll deductions after the shutdown ends. There are two types: general purpose loans (repaid over one to five years) and residential loans (repaid over one to fifteen years).

However, TSP loans carry important trade-offs. The borrowed funds miss out on potential investment growth during the loan period. If the loan is not repaid according to schedule, the outstanding balance may be treated as a taxable distribution, potentially incurring income tax and, if the employee is under age 59 and a half, an additional 10 percent early withdrawal penalty. Federal employees should carefully weigh whether a TSP loan is appropriate for their situation or whether a credit union loan or other short-term borrowing option would be less costly overall.

State-Level Assistance Programs

During past shutdowns, several states have made unemployment insurance benefits available to furloughed federal employees. Eligibility rules vary by state, and in most cases, employees who receive unemployment benefits during a shutdown are required to repay those benefits once back pay is received. States that have offered this assistance in prior shutdowns include California, Colorado, the District of Columbia, Maryland, New York, and Virginia, among others.

Additionally, some states and local governments have offered property tax payment deferrals, utility shutoff protections, and hardship assistance programs specifically for affected federal workers. Checking your state labor department's website is the best starting point for current program availability.

What Federal Workers Can and Cannot Do During a Shutdown

The rules governing federal employee conduct during a shutdown are rooted in the Anti-Deficiency Act (31 U.S.C. 1341-1342), which prohibits federal agencies from spending money or incurring obligations without an appropriation from Congress. This law drives most of the restrictions on what furloughed employees may do.

What Furloughed Employees Cannot Do

• Work in any capacity: Furloughed employees may not perform any work-related duties, even on a voluntary or unpaid basis. This includes answering work emails, making work-related phone calls, attending meetings, or completing assignments from home.
• Use government equipment: Employees must return or secure government-issued laptops, phones, badges, and vehicles according to their agency's shutdown plan. Using government devices for personal purposes during a furlough is also prohibited.
• Access government facilities: Without authorization, furloughed employees may not enter their federal workplace. Excepted employees who continue working retain facility access only for their assigned duties.
• Volunteer for their agency: The Anti-Deficiency Act prohibits agencies from accepting voluntary services except in emergencies involving the safety of human life or the protection of property. A furloughed employee cannot simply volunteer to keep doing their job unpaid.

What Furloughed Employees Can Do

• Seek temporary outside employment: Furloughed employees may take temporary or part-time jobs during a shutdown, provided the outside work does not violate their agency's ethics regulations, conflict-of-interest rules, or any pre-existing outside employment restrictions. Employees should review their agency's standards of conduct and, when in doubt, consult with their ethics office before the shutdown begins.
• File for unemployment: As noted above, many states allow furloughed federal employees to apply for unemployment insurance during a shutdown. Employees should file promptly, as there is typically a waiting period before benefits begin.
• Use accrued personal leave: Some agencies allow employees to use already-accrued annual leave or other paid time off during a shutdown, but this is agency-specific and not universally available. Employees should check with their HR office before a shutdown begins.
• Continue health insurance: Federal Employees Health Benefits (FEHB) coverage continues during a shutdown. The government's share of premiums accumulates as a debt that is settled from the employee's pay once the shutdown ends. Employees should not cancel or change their coverage during a furlough.

Rules for Excepted Employees

Excepted employees who continue working during a shutdown are limited to performing only those functions that are specifically authorized in their agency's shutdown contingency plan. They may not take on additional duties or projects that fall outside the scope of excepted activities, even if they have spare capacity. Their work hours, overtime eligibility, and duty assignments are governed by the contingency plan, not their normal position description.