Trump Administration May Withhold Pay from 750,000 Furloughed Workers Amid Shutdown

A leaked White House memo suggests that the Trump administration may deny pay to up to 750,000 furloughed federal workers during the ongoing government shutdown. The memo claims that a law guaranteeing retroactive pay, the Government Employee Fair Treatment Act, requires Congressional approval for backpay. Critics argue that this interpretation misreads the law and contradicts its purpose. The White House blames Democrats for the shutdown.

A leaked memo from the White House suggests that up to 750,000 furloughed federal workers may not receive back pay during the ongoing government shutdown. The memo, released on October 7, 2025, argues that the Government Employee Fair Treatment Act, which mandates retroactive pay for federal workers during shutdowns, requires Congressional approval for backpay Government Shutdown: White House Considers Not Paying Furloughed Federal Workers Once Government Reopens^[1].

The memo, written by White House budget chief Russ Vought, claims that the 2019 law is invalid and that Congress must appropriate funds specifically for backpay. This interpretation has been contested by Democrats, with Sen. Patty Murray, D-Wash., calling it "another baseless attempt to try and scare" federal workers Government Shutdown: White House Considers Not Paying Furloughed Federal Workers Once Government Reopens^[1].

The shutdown, now in its seventh day, began when the Senate failed to approve a Republican-backed "continuing resolution" on September 30, 2025. The resolution would have allowed the government to operate under its existing budget through Nov. 21. The shutdown is the result of a partisan stalemate over the Affordable Care Act's subsidies and other funding issues Government Shutdown: White House Considers Not Paying Furloughed Federal Workers Once Government Reopens^[1].

The White House blames Democrats for the shutdown, with White House press secretary Karoline Leavitt saying at a press briefing that Democrats are responsible for the shutdown and the firings the Trump administration has threatened to enact as pressure on the opposition party Government Shutdown: White House Considers Not Paying Furloughed Federal Workers Once Government Reopens^[1].

The shutdown has already led to the suspension of key economic data collection activities from the Labor Department and the halting of some federal funding for infrastructure projects in Democratic-led states. The Congressional Budget Office estimates that 750,000 workers could be furloughed daily during a shutdown, with their compensation totaling $400 million Government Shutdown: White House Considers Not Paying Furloughed Federal Workers Once Government Reopens^[1].

Despite the shutdown, some federal agencies, such as the U.S. Postal Service and passport and visa processing, will continue to operate normally. Mandatory programs, such as Social Security, Medicare, and Medicaid, will also continue to function Government Shutdown: White House Considers Not Paying Furloughed Federal Workers Once Government Reopens^[1].

The memo from the White House has raised concerns among federal workers and their advocates, who argue that the interpretation of the law is incorrect and that it contradicts the law's purpose. The memo has also sparked debate about the Trump administration's handling of the shutdown and its potential impact on the economy and federal workers.