What the government shutdown means for federal workers

The U.S. government shut down Wednesday, putting hundreds of thousands of federal workers at risk of losing pay.

About 750,000 federal employees are expected to be furloughed each day, according to the Congressional Budget Office. Hundreds of thousands more are required to keep working without pay until funding resumes, based on federal agency estimates, including essential staff like air traffic controllers and border patrol agents.

The shutdown was triggered early Wednesday after the Senate failed to pass a short-term funding bill. The measure, which would have kept the government open through Nov. 20, fell short in a 55-45 vote, below the 60 needed.

All but two Democratic senators opposed the bill. Led by Senate Minority Leader Chuck Schumer, D-N.Y., Democrats have been pushing for an extension of expiring Affordable Care Act subsidies and the reversal of about $1 trillion in Medicaid cuts included in President Donald Trump’s One Big Beautiful Bill.

In turn, Trump and Vice President J.D Vance have threatened permanent job cuts. Last week, the Office of Management and Budget sent a memo directing federal agencies to prepare layoff plans for programs “not consistent with the president’s priorities” if funding lapses, according to the memo published by PBS.

Labor unions have already sued over the move, arguing it violates federal law.

Each year, Congress must approve funding for the government’s new fiscal year, which begins Oct. 1. A shutdown occurs when lawmakers miss that deadline. The last time it happened was a 34-day shutdown in 2018, during Trump’s first term.

In a shutdown, agencies pause many operations and split workers into two categories:

• Excepted employees who must keep working without pay, commonly in roles tied to safety and national security.
• Non-excepted employees who are placed on unpaid leave and told not to report to work.

Federal employees are guaranteed back pay once the shutdown ends, but contractors are not.

The shutdown’s effects will be most visible in the government’s largest agencies. At the Department of Homeland Security, more than 250,000 employees are required to keep working without pay, including border patrol officers and TSA agents, according to its contingency plan. 

The Department of Health and Human Services expects to furlough about 32,460 workers, or 41% of its staff, Reuters reports. And at the FAA, more than 11,000 employees are being sent home while about 13,000 air traffic controllers continue working without pay.

Most social programs will continue because they’re funded outside the annual budget process. Social Security and Medicare benefits will still go out, the Postal Service will keep running and veterans’ health care and disability payments will continue. SNAP food assistance is not expected to be affected immediately, though a prolonged shutdown could strain USDA’s reserves, AARP reports.

Shutdowns are a considerable disruption, especially for federal employees whose pay status can be unclear. To help them, the Office of Personnel Management maintains the government-wide shutdown guidance that applies to all federal employees.

Federal agencies have also posted contingency plans that outline who is furloughed, who must keep working without pay and the procedures employees are expected to follow while operations are scaled back. Below is guidance from some of the agencies with the most employees affected:

For contract workers wondering if they’ll get paid, the National Law Review offers advice on confirming contract status and possible recourse on compensation.

Beyond that, out-of-work federal workers and contractors might qualify for state unemployment insurance. Furloughed federal employees access it through the Unemployment Compensation for Federal Employees program.

Unfortunately, excepted employees have fewer options and often need to rely on personal savings until the shutdown ends.

Want to be your own boss? Sign up for CNBC’s new online course, How To Start A Business: For First-Time Founders. Find step-by-step guidance for launching your first business, from testing your idea to growing your revenue.

Plus, sign up for CNBC Make It’s newsletter to get tips and tricks for success at work, with money and in life, and request to join our exclusive community on LinkedIn to connect with experts and peers.