Trump Shutdown 2025

This isn’t a game to America’s workers and our families.

• Since Day One, the Trump administration’s Project 2025/DOGE agenda has targeted our health care and the federal workers who keep our essential government services running. Now, the administration is turning up the chaos and suffering and pushing the country toward a government shutdown because President Trump and his allies in Congress do not want to address a mounting health care crisis. 
• Nearly 750,000 federal workers will be locked out, put on leave (furlough) and will be forced to work without pay. The administration threatened to illegally fire thousands of workers if the government runs out of funding. And without a funding agreement, nearly 180 million Americans are facing a health care cost spike—a crisis of the administration’s own making.

• Federal workers are not political pawns. Our message to the administration is clear: Stop the Trump shutdown. Fund the government. Fix the health care crisis. Put working people first.

Government Shutdown & Continuing Resolutions: What They Mean

What is a Government Shutdown?

A government shutdown (also known as a shutdown furlough) occurs when Congress fails to enact annual appropriations or a continuing resolution (CR) before existing funding expires. In that scenario, the government must suspend or reduce operations funded by those appropriations, except for functions expressly authorized to continue.

• The Antideficiency Act prohibits agencies from obligating funds when there’s no appropriation.
• Agencies are required to implement shutdown furloughs for non-excepted work.
• OPM’s guidance is designed to assist agencies and employees in managing that process.

What is a Continuing Resolution (CR)?

A Continuing Resolution is a temporary funding measure that keeps federal programs operating (typically at prior year or reduced levels) when full appropriations have not yet been passed. A CR forestalls a shutdown by extending funding for a defined period, allowing Congress more time to negotiate full-year appropriations.

Key Provisions from OPM’s September 2025 Shutdown Furlough Guidance

OPM Guidance: www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/

Employee Classification: Excepted, Exempt, or Furloughed

• Excepted employees are those whose duties must continue despite the lapse, typically because their work supports the safety of life, protection of property, or performance of other functions allowed by law.
• Exempt employees are those whose work is not funded by annual appropriations and thus continue under normal rules.
• Non-excepted employees (i.e. those whose work is funded by annual appropriations but not classified as excepted) must be placed in furlough (nonduty/nonpay status).
• An employee may be excepted for part of a lapse and furloughed for the remainder, depending on task demands.
• Each agency is responsible for notifying employees of their status (excepted vs non-excepted) using methods determined locally.

Working Rules & Restrictions

• Volunteering services during a furlough is not allowed under the Antideficiency Act. Employees cannot offer to continue their duties without pay outside of legal exceptions.
• If training or other scheduled activities fall during a furlough, non-excepted employees must be placed in furlough and not attend.
• Outside employment rules remain in effect. Even during a furlough, employees must comply with ethics and outside work regulations.

Pay, Retroactive Compensation, and Premiums

• Excepted work performed during a lapse will be back-paid once appropriations are restored.
• Furloughed employees also receive retroactive pay for the period they were in furlough status, at their “standard rate of pay.”
• The “standard rate of pay” is what the employee would normally earn had the lapse not occurred (for those hours).
• Premium pay (overtime, night, availability pay, etc.) earned while doing excepted duties is payable retrospectively, subject to applicable rules.
• If a lapse occurs mid-pay period and a partial paycheck is issued, agencies follow deduction precedence rules; some fixed deductions (like health insurance) will still apply, and some deductions may be reduced.
• Even if deductions can’t be made during a lapse, coverage (e.g. health insurance) is generally maintained; the withheld premium amount will be recovered once pay resumes (except in some flexible spending account reimbursements).

Leave, Time Off & FMLA

• Previously approved paid leave (annual, sick, etc.) is canceled during a lapse (for both excepted and non-excepted employees).
• Excepted employees may request to use paid leave under 31 U.S.C. 1341(c)(3), but it is generally preferable to be placed in furlough status for retroactive pay purposes.
• Intermittent absences by excepted employees may be handled by workplace flexibilities or modified furlough notices.
• FMLA leave scheduled during a lapse is canceled (unless an excepted employee elects to use paid leave under 31 U.S.C. 1341(c)(3)). Periods of leave without pay during a furlough lapse do not count against FMLA entitlement.

Performance Awards, Step Increases, Service Credit

• Agencies may delay performance awards (e.g. for GS/SES) until after the furlough, since no appropriation is available during the lapse.
• Within-grade increases that would have occurred during the lapse will not be delayed; furlough time counts as time in pay status for eligibility for step increases.
• Service credit for retirement and similar purposes will treat the furlough period as pay status in most cases (for GS/Wage system).

Retirement, Separation, and FECA

• Some retirement processing (e.g. new applications) may be delayed; however, employees whose paperwork was submitted beforehand may see eventual processing.
• Separations during a lapse are covered, and benefits or severance are handled per standard rules.
• Injured employees under FECA (workers’ compensation) continue to have claim benefits; the lapse does not disrupt FECA coverage.

What This Means for DoD Civilian Employees & Contractors

For DoD Civilian Employees

• DoD components will classify missions, identify excepted functions, and issue local notices consistent with this OPM guidance.
• Many functions funded by annual appropriations may be suspended, and non-excepted employees will be furloughed.
• Excepted employees performing essential tasks will work without pay and receive retroactive pay after funding is restored.
• Employees should expect to receive official notices of furlough or excepted status from their HRO or component leadership.
• DoD’s internal defense guidance (via DCPAS and component HR offices) will layer on additional instructions specific to mission-critical operations.

For Contractors

• Contractors should expect that funding lapse may trigger stop-work orders, suspensions, or terminations, especially if their work is not part of excepted or continuing missions.
• They should coordinate with their contracting officers (KO) or the program office to understand whether work is deemed essential or may proceed under other authority.
• Unlike federal employees, contractors do not automatically get retroactive pay; their terms depend strictly on contract clauses, available funding, and government direction.

Pay & Benefits Implications: What to Know

• Under the Government Employee Fair Treatment Act of 2019 (GEFTA), both furloughed and excepted employees must receive retroactive pay once appropriations resume.
• Heath insurance, life insurance, and other benefit programs generally continue during the lapse, though premium withholdings may be deferred until pay resumes.
• For health flexible spending accounts (FSAFEDS), claims cannot be reimbursed during non-pay status and must wait until pay status resumes.
• Payroll deductions (allotments, garnishments, etc.) that could not be collected may be deferred and reconciled later.
• During a partial paycheck scenario, agencies apply deduction precedence rules. Fixed-amount deductions (e.g. insurance) may remain; percentage-based deductions may be reduced.

Unemployment Insurance & Financial Relief

• Furloughed federal employees may qualify for Unemployment Compensation for Federal Employees (UCFE) via their state unemployment office.
• OPM’s guidance supports allowing agencies to except (recall) some furloughed employees to process Form 931s and wage/separation data for state unemployment offices.
• Non-federal (contractor) personnel rely strictly on state-level unemployment insurance (UI) programs.
• Contractors should confirm whether a suspension or stop-work is defined by their state UI law as a layoff or eligible unemployment event.
• Filing should begin as soon as non-pay status begins, if eligible.

What Employees & Contractors Should Do Now

• Stay alert for official notices
• Watch for messages from your HRO, component leadership, or chain of command regarding furlough or excepted designation.
• Update personal contact info (email, phone) in case notifications are required.

Ask clarifying questions

• Am I designated as excepted or non-excepted?
• If excepted, what tasks will I perform, and will I be on duty without pay?
• If furloughed, when does the furlough begin and end?
• How will back pay and deductions be handled?

Document your work and hours

• Maintain timesheets or logs of work you perform (especially if excepted).
• Record task descriptions in case any retroactive claims or adjustments are needed.

File for UCFE (if applicable)

• Once your non-pay status begins, submit a claim via your state unemployment office under the UCFE program (if eligible).
• Request that your agency provide the required wage/separation data (e.g., Form 931) to the state UI office.

Review your benefits & retirement plans

• Understand how premium withholdings and deductions may be adjusted or deferred.
• If you have pending retirement or separation paperwork, check on its status.
• Be aware of how furlough time is treated for service credit, step increases, and other rights.

Plan your finances

• Adjust budgets, reduce discretionary spending, and consider emergency reserves.
• Communicate with creditors, lenders, or landlords if you anticipate delays in pay.
• Explore temporary relief programs (if available) for salary disruptions.