1.4 million federal workers await backpay after missing two full paychecks during shutdown

The 2025 government shutdownGovernment ShutdownA lapse in federal funding that forces non-essential agencies to halt operations when Congress fails to pass appropriations legislation or a continuing resolution before money runs out.Key ConceptGovernment ShutdownA lapse in federal funding that forces non-essential agencies to halt operations when Congress fails to pass appropriations legislation or a continuing resolution before money runs out.Open conceptBookmark began at 12:01 a.m. on Oct. 1 when Congress failed to pass appropriations for the new fiscal year. It lasted 43 days — the longest shutdown in U.S. history, surpassing the 35-day shutdown of 2018-2019. Congress passed a continuing resolutionContinuing ResolutionA temporary spending bill that keeps the government funded when full appropriations bills haven't passed.Key ConceptContinuing ResolutionA temporary spending bill that keeps the government funded when full appropriations bills haven't passed.Open conceptBookmark on Nov. 12, 2025, funding most agencies through Jan. 30, 2026, and fully funding the VA, Agriculture Department, and legislative branch.

At least 670,000 civilian federal employees were furloughed — sent home without pay and barred from working. Another roughly 730,000 'excepted' employees were required to keep working without pay because their jobs were deemed essential to safety or national security. Both groups are entitled to retroactive pay under federal law.

By the time the shutdown ended, nearly three million paychecks had been withheld from civilian federal employees, representing approximately $14 billion in missing wages, according to the Bipartisan Policy Center. The average federal paycheck in fiscal year 2025 was roughly $4,700.

The 2019 Government Employee Fair Treatment Act — passed during Trump's first term — requires the government to issue backpay to all furloughed and excepted workers 'at the earliest date possible' once funding is restored. An October 2025 draft memo from the Office of Management and Budget's general counsel argued the law did not automatically guarantee backpay and may require specific congressional appropriation. The final shutdown deal explicitly reaffirmed the backpay guarantee, overriding the OMB interpretation.

Agencies used different payroll systems and schedules. The White House Office of Management and Budget released an agency-by-agency projection for when paychecks would be processed.

Defense Department and VA employees were scheduled to receive backpay as early as Nov. 16. Most other agencies were expected to complete processing by Nov. 19. The IRS initially told workers they wouldn't be paid until Nov. 24, then corrected to Nov. 19 after the National Treasury Employees Union complained about the lack of urgency.

The backlog in processing was compounded by the fact that many HR staff members were themselves furloughed or had already left the government due to earlier downsizing efforts. Multiple pay systems across agencies added further complexity.

The Department of Homeland Security gave TSA officers a $10,000 bonus for working during the shutdown without pay. The deal also required the administration to rescind layoffs made during the shutdown and freeze additional layoffs until Jan. 30, 2026.

The financial toll on workers was severe. Credit unions serving federal employees reported an 18-fold spike in emergency loan applications.

Food banks in federal-heavy areas like Prince George's County, Maryland, were overwhelmed. Local businesses near federal offices reported spending drops of up to 20%. For the 43% of federal workers earning under $90,000 annually, many rationed groceries, delayed mortgage payments, or tapped emergency solidarity funds from the AFL-CIO.

Military personnel were partially shielded

The Trump administration redirected funds to pay active-duty troops on Oct. 15 and Oct. 31

But Nov. 14 would have marked the first time in history that all military branches missed a paycheck together The final continuing resolution also included a provision to unwind some of the federal employee layoffs (reductions in force) that had been initiated during the shutdown.