A member of the public walks across Pennsylvania Avenue in front of the US Capitol, Washington DC, USA, 05 September 2025. The latest US Labor market report was released on 05 September showing 22,000 jobs were added to the US economy in August and also the unemployment rate rose to 4.3 percent. Image: WILL OLIVER/EPA/Shutterstock
By: FEDweek StaffA process familiar to long-time federal employees would kick in—with the first steps starting as early as next week—if a funding lapse occurs and triggers a partial government shutdown as of the October 1 start of the new fiscal year.
While a way around such a threat most commonly is found—causing many federal employees to face it with a shrug—the potential for a shutdown appears to be higher than in the past several instances in which funding for a large portion of the government had been near its expiration.
There is still no agreement, now less than two weeks from the deadline, on avoiding a shutdown. Republican leaders are considering a funding extension through November 21, although without provisions on health care and other matters that Democrats are insisting be included. A bill could pass the House with only Republican votes—although even that is not assured—but support from some Democrats would be needed to clear the 60-vote threshold in the Senate.
About a week before the end of funding authority, OMB issues a memo to affected agencies telling them to start carrying out their shutdown contingency plans. Those plans describe the categories of employees who would be required to stay at work, although unpaid until funding is restored (“excepted” employees) and those who would be sent home on unpaid furloughs (“non-excepted” employees). The distinctions are largely based on OMB policy in effect for decades involving agency obligations to provide safety and security regardless of the availability of funds.
While the Trump administration has stopped the posting of those plans, archived plans from the Biden administration are here. Those plans traditionally have changed only little year-to-year, although downsizings and reorganizations this year likely have resulted in more significant changes.
Both employees kept on the job during a partial shutdown and those who are furloughed are guaranteed to be paid when funding is restored. (Until a law passed in 2019 in response to the shutdown that stretched over late 2018-early 2019, the latter group traditionally had been paid but there was no legal guarantee.) Exactly when they would see that pay would depend on how the timing of the restored funding meshes with agency payroll cycles.
In addition, some agencies, or parts of agencies, are “exempt” because they are self-funding. The TSP and USPS are exempt totally, for example. Further, some agencies have trust funds, rollover funds, multi-year funds and other sources of income that would allow them to remain fully open, at least for a time.
In its memo, OMB also describes their obligations to notify employees of their status, procedures to conduct “orderly” shutdown-related activities. This typically includes calling even furloughed employees into work for part of their first scheduled workday after a shutdown starts, to secure their work and make other needed arrangements.
That memo also includes instructions on recalling furloughed employees to work after a shutdown ends –or earlier, in some cases. When funding is restored, OMB sends another memo on reopening offices.
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See also,
How Do Age and Years of Service Impact My Federal Retirement
The Best Ages for Federal Employees to Retire
FERS Retirement Guide 2025 – Your Roadmap to Maximizing Federal Retirement Benefits
