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Controversial White House Memo: Furloughed Federal Employees May Not Receive Back Pay

10/7/2025
A draft memo from the White House suggests furloughed federal employees may not be entitled to back pay, sparking controversy among lawmakers and workers alike. As the shutdown continues, 750,000 workers face uncertainty.
Controversial White House Memo: Furloughed Federal Employees May Not Receive Back Pay
A draft memo indicates furloughed federal employees may not receive back pay, raising concerns among government workers and lawmakers during the ongoing shutdown.

Draft White House Memo Sparks Controversy Over Furloughed Federal Employees' Pay

A recent draft memo from the White House suggests a significant change in policy regarding the pay of furloughed federal employees during government shutdowns. According to an administration official who spoke to CNN, this proposed guideline indicates that employees may not receive compensation for the time they did not work during the shutdown. This new interpretation of existing laws is poised to stir considerable debate on Capitol Hill and among federal workers themselves.

As reported by AXIOS, CNN has not yet reviewed the memo, and it remains unclear how seriously this proposal is under consideration by the administration. The memo originates from the White House’s Office of Management and Budget (OMB) and asserts that the current understanding of the Government Employee Fair Treatment Act (GEFTA) is either flawed or “deficient.” This act has been widely interpreted to guarantee that furloughed workers would receive back pay once any future government shutdowns concluded.

Background on the Government Employee Fair Treatment Act

Signed into law by President Donald Trump during his first term, the GEFTA was established in response to the longest government shutdown in U.S. history, which lasted for a record-breaking 35 days and concluded in late January 2019. Historically, Congress has approved measures to provide back pay for federal workers impacted by shutdowns, but the absence of a guaranteed payment often left employees anxious about their financial security.

Currently, approximately 750,000 federal workers are expected to be furloughed due to the ongoing shutdown, as analyzed by the Congressional Budget Office. Additionally, many federal employees who are required to continue working will be doing so without pay until the funding impasse is resolved. The repercussions of the shutdown are set to hit many government employees later this week, as their paychecks will be reduced due to not being compensated for the initial days of October. For numerous workers, this partial paycheck may be their last until the shutdown concludes.

Contradictory Statements from the President

The existence of this draft memo stands in stark contrast to President Trump’s remarks over the weekend. During a visit to one of the largest Naval installations to commemorate the US Navy’s 250th birthday, Trump assured military members that they need not worry about delayed paychecks. He stated, “I want you to know that despite the current Democrat-induced shutdown, we will get our service members every last penny.” His comments, made to a large audience of sailors in Norfolk, Virginia, emphasized that “it’s all coming, it’s coming, and even more.”

In addition to addressing concerns about pay, the president announced support for “across-the-board pay raises for every sailor and service member in the United States Armed Forces.”

Response from Labor Organizations

In light of the draft memo, the American Federation of Government Employees (AFGE) expressed concerns, stating that the memo contradicts guidance issued by the White House Office of Personnel Management in late September. The guidance specified that “after the lapse in appropriations has ended, employees who were furloughed as the result of the lapse will receive retroactive pay for those furlough periods.” It further assured that “retroactive pay will be provided on the earliest date possible after the lapse ends, regardless of scheduled pay dates.”

This ongoing situation highlights the complexities surrounding federal employee compensation during government shutdowns and the potential implications of the proposed changes in policy. As this story develops, it will be crucial for both employees and lawmakers to stay informed about the evolving landscape of federal employment rights.

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