Retroactive Pay for Federal Employees During Shutdown: What to Know

Here’s what to know about retroactive pay.

Published: 10/27/2025, 11:04:21 PM EDT

Retroactive Pay for Federal Employees During Shutdown: What to Know — A sign indicates that the Library of Congress in Washington is closed on Oct. 21, 2025, due to the U.S. government shutdown. (Daniel Heuer/AFP via Getty Images)

As the government shutdown entered its 27th day on Monday, hundreds of thousands of federal employees face financial uncertainty.

Congress has repeatedly failed to pass a short-term funding bill to reopen the government. As a result, furloughed workers have been forced to stay home without pay, while others deemed "excepted" employees have stayed on the job without getting paid.

About 670,000 federal employees are furloughed, while about 730,000 are working without pay, according to the Bipartisan Policy Center.

Roughly 830,000 employees are working with some form of pay. Oct. 24 marked the first time some federal workers didn’t receive a paycheck.

As the shutdown drags on, affected employees are wondering when they’ll see their next paycheck.

Here’s what to know about retroactive pay:

Federal Law Protects Back Pay

President Donald Trump signed legislation in 2019 that states back pay will be provided for employees affected by a funding impasse.

The Government Employee Fair Treatment Act of 2019 was enacted in response to the shutdown during Trump’s first term.

“This bill requires employees of the federal government or a District of Columbia public employer who are furloughed or required to work during a lapse in appropriations beginning on or after December 22, 2018, to be compensated for the period of the lapse,” text of the bill reads.

“The employees must be compensated on the earliest date possible after the lapse ends, regardless of scheduled pay dates. Employees required to work during the lapse in appropriations may use leave.

No Guarantees?

Even though Trump’s law ensures that affected employees are ultimately paid in full, specific congressional action may be required, according to a new draft memo addressed to Office Of Management and Budget Director (OMB) Russel Vought. The memo, first obtained by The Washington Post, appears to suggest that retroactive compensation isn’t automatically guaranteed for furloughed workers. The memo argues that any funding legislation passed by Congress to end the shutdown must explicitly include appropriations in order to give back pay for furloughed federal employees.

But that memo contradicts Trump’s own law, according to Max Stier, president and CEO of Partnership for Public Service.

“The Government Employee Fair Treatment Act of 2019—which President Trump signed into law during his first term—is very clear in its mandate to give automatic back pay to furloughed workers during a lapse in appropriations,” Stier said in a statement. “The draft OMB memo is also in direct conflict with OPM shutdown guidance released by the administration just last month. “

NTD reached out to OMB but did not receive an immediate response.

Previous guidance by the Office of Personnel Management states that both furloughed and excepted workers are guaranteed to be paid in full as soon as possible in the event that a shutdown ends.

"If retroactive pay cannot be provided by the normal pay date for the given pay period, it will be provided as soon as possible thereafter," the guidance states. “Retroactive pay will be provided on the earliest date possible after the lapse ends, regardless of scheduled pay dates."

Oct. 31 may be the first time in history that members of all military branches will miss a paycheck due, according to the Bipartisan Policy Center. The Trump administration reallocated $8 billion to cover active-duty military pay but that only lasted until the Oct. 15 pay date.

Roughly 4.5 million paychecks, totaling roughly $21 billion, will be withheld from federal civilian employees if the shutdown continues through Dec. 1, the Bipartisan Policy Center said.