The 2025 Shutdown! What’s New & What It Means for Federal Workers

Introduction

In 2025, the federal government entered a shutdown beginning October 1, after Congress failed to pass new appropriations.

Roughly 750,000 federal employees were projected to be furloughed, with additional staff required to continue working (in “excepted” roles) but without pay until funding is restored.

Some specific impacts and tensions in the 2025 shutdown:

The IRS announced it would furlough about 34,000 employees (roughly 50 % of its workforce) beginning October 8.
The Department of Health and Human Services (HHS) expects to furlough 41 % of its workforce, severely affecting public-health work and oversight.
The Office of Management and Budget (OMB) issued revised guidance removing or softening language that had previously affirmed guaranteed back pay for all furloughed employees.
- Under that OMB view, only excepted employees (those forced to work despite the lapse) are explicitly guaranteed back pay; furloughed workers’ retroactive pay is portrayed as dependent on later congressional appropriation.
- This interpretation conflicts with prior understandings under the Government Employee Fair Treatment Act (GEFTA) of 2019, which many believed guaranteed back pay to all.
- Legal experts, labor unions, and lawmakers have challenged the OMB view, arguing that the law mandates retroactive pay and cannot be overridden by administrative reinterpretation.
In the shutdown’s early days, flight delays rose sharply: staff shortages in air traffic control accounted for more than half of delays (far above normal levels).
Transportation Secretary warned that air traffic controllers repeatedly failing to show up might face disciplinary action, including dismissal.
Some agencies are considering reduction in force (RIF) plans (i.e. permanent cuts or layoffs) if the shutdown drags on.
Many federal services are being scaled back or halted — taxpayer assistance at IRS, research at NIH and CDC, certain public health oversight, etc.

So, the 2025 shutdown brings many of the same structural effects as past ones, but with heightened legal risk around back pay and added pressure for permanent cuts.

What Is a Furlough — Recap & 2025 Context

Furlough = a temporary non-duty, non-pay status imposed on federal employees when there is a lapse in appropriations (i.e. when funding has run out) and their roles are considered nonessential. Employees are not allowed to perform work, even voluntarily, during the furlough period (in most cases) under the Antideficiency Act.

In 2025, the same general rules apply, but tension is higher:

The 2019 law (GEFTA) was intended to guarantee retroactive pay for furloughed employees. But OMB’s 2025 guidance is questioning whether that guarantee can be enforced without explicit new appropriation.
Because of that tension, some furloughed employees in 2025 may face uncertainty about when (or even whether) back pay will be delivered.
Agencies may base decisions on the OMB guidance or challenge it — leading to legal disputes or delays.

So in 2025, furlough means essentially the same status, but with extra uncertainty and stress around compensation and job security.

Who Gets Paid — Excepted vs Furloughed vs Funded Roles (2025 Update)

During the 2025 shutdown, employees generally fall into these categories: Role During Shutdown Pay During Shutdown After Shutdown / Back Pay Status Excepted / essential employees (e.g. air traffic control, border security, emergency services) Must continue working No immediate pay during shutdown Under OMB’s new view, retroactive pay for excepted workers is more clearly guaranteed; previous expectations are that they will be paid for work done during shutdown. Furloughed employees (nonessential roles) Placed in non-duty, non-pay status No pay during the shutdown Under GEFTA, back pay was supposed to be automatic; but OMB’s new guidance casts doubt, indicating that retroactive pay may depend on Congress including it in new appropriation legislation. Employees in positions funded by non-appropriation sources (e.g. certain mandatory programs, fees, trust funds) May continue working May continue to receive pay from their funding sources Normal continuation; not affected by the lapse of discretionary appropriations

Key uncertainties in 2025:

The removal of guaranteed back pay language in OMB’s 2025 guidance introduces legal conflict.
Some agencies (per OMB direction) are evaluating RIFs and permanent cuts, which could transform furloughs into terminations if the shutdown lasts long.
Because of the dispute, some furloughed employees may face delay or even nonpayment if Congress does not explicitly authorize the funds for retroactive pay.

What Happens if the Federal Employee Is Military or in Uniformed Service in 2025

Active-Duty Military / Uniformed Service Members

They are considered essential for national defense, so they continue their duties during a shutdown.
In the 2025 shutdown, there is growing concern that military pay could be delayed for upcoming pay periods, putting service members and their families under financial strain.
Advocacy groups and some lawmakers have pushed legislation (e.g. versions of a “Pay Our Troops Act”) to guarantee military pay during shutdowns, regardless of broader appropriations debates.
In past shutdowns, Congress has eventually provided retroactive pay to service members for the unpaid period.

Civilian Employees in Military / DoD Agencies

Much like other federal civilian employees, they may be furloughed if their role is nonessential or discretionary.
Only the minimum number of civilians required to support essential defense functions will be retained (excepted).
Those retained would continue to work (possibly without pay), while others are furloughed.

So in 2025, military personnel continue to serve, but may see their pay delayed. Civilian workers under defense may be furloughed or retained depending on mission needs.

Financial Hardship During the 2025 Shutdown: What Help Exists

The 2025 shutdown has intensified the threat to households relying on steady federal income. Here’s a breakdown of resources, strategies, and support available — especially for military families.

Unemployment / Unemployment Compensation

Furloughed federal workers may attempt to apply for state unemployment benefits. Eligibility, waiting periods, and processing times vary by state.
The federal government does not automatically enroll employees; individuals must file with their state’s unemployment office.
Because state unemployment systems are often designed for private-sector claims, federal employees sometimes face confusion or delays in processing claims.

Military / Service Relief Organizations & Programs

For service members and their families, there are dedicated relief and support organizations, often offering no-interest loans, grants, and counseling:

Army Emergency Relief (AER) — offers interest-free loans, grants, and financial preparedness programs to Army personnel and families.
Navy-Marine Corps Relief Society — similar financial aid, counseling, and support services.
Air Force Aid Society — provides emergency assistance, education, and other support.
Coast Guard Mutual Assistance — assistance for Coast Guard personnel and their families.
Military OneSource — a DoD resource hub offering help with finances, counseling, benefits navigation, and support to service members & dependents.
Operation Homefront — a nonprofit that supports military and veteran families with emergency financial assistance (e.g. rent, utilities), food, transitional housing, and more.
Blue Star Families — community support network, resources, and advocacy for military and veteran families.
National Military Family Association (NMFA) — advocacy, resources, and programs for military families.
Fisher House Foundation — provides free or low-cost lodging for families of veterans/service members receiving care at VA medical centers.

These organizations often have emergency grant or loan programs, and they may be more agile than federal agencies in delivering help quickly.

Local, Community & Nonprofit Support

Religious organizations, charities, local food banks, and community groups often step in to assist with food, utilities, housing, or emergency cash.
Some credit unions and banks affiliated with the military or federal employment (e.g. Navy Federal Credit Union) may offer hardship programs or loan deferments.
Collective bargaining organizations or federal employee unions may also provide temporary relief funds, interest-free loans, or guidance.
In some jurisdictions, state or local government agencies may open hardship relief or crisis funds to assist impacted households.

Other Strategies & Options

Negotiate with lenders, utilities, mortgage companies, and insurers for deferments or temporary relief due to hardship.
Tap into emergency savings, if available, or consider short-term borrowing carefully (e.g. low-interest credit, borrowing from family).
Reduce discretionary spending aggressively (cut subscriptions, non-essential purchases).
Explore side work or gig opportunities (where allowed), though federal ethics and employment rules may limit outside work for some employees.
Share resources among extended family, do barters, or pool household expenses.

In sum: military support organizations, nonprofits, community resources, and state unemployment options represent the main relief pathways during a shutdown in 2025.

10 Ways Families Can Survive a Shutdown (Especially in 2025)

Here are practical steps families (military or civilian) can take to weather a federal shutdown:

Immediately create a minimal cash-flow budget
- Separate essential from nonessential expenses
- Prioritize rent/mortgage, utilities, food, insurance, and debt payments
Contact lenders and service providers proactively
- Request hardship plans, deferments, or partial payments for mortgage, auto, credit cards, utilities
Apply for unemployment benefits (if eligible)
- File with your state’s unemployment office early
- Be patient — processing may be slower than usual
Tap into federal/employment assistance programs
- Contact your agency’s Employee Assistance Program (EAP)
- Check if your agency or union offers emergency loans, grants, or relief funds
Utilize military support and relief organizations
- Apply for aid from AER, NMCRS, AF Aid Society, CG Mutual Assistance
- Use nonprofit programs like Operation Homefront, Military OneSource
Lean on local community and non-profit resources
- Food banks, churches, charities often provide direct support
- Community-based emergency assistance funds
Seek short-term, low-cost borrowing options
- Credit unions or bank hardship programs
- Avoid high-interest payday loans or predatory lenders
Reduce recurring expenses immediately
- Cancel or pause subscriptions (streaming services, memberships)
- Cut back on discretionary spending (dining out, entertainment)
Explore side income or gig work (where permitted)
- Check legal/contractual constraints (especially for government employees)
- Use skills, hobbies, or freelancing to generate extra cash
Stay informed, advocate, and plan ahead

Monitor official agency, union, or OPM communications
Track pending legislation (e.g. “Pay Our Troops” proposals)
Use this as a signal to build or strengthen emergency reserves for future insulations

Companies & Employers That Support Military Families (Especially During Hardships)

Below are examples of companies, programs, or policies that are known for strong support of veterans, military families, or employees with uniformed service backgrounds:

According to Military Friendly Companies listings, institutions like Army and Air Force Exchange Service, VyStar Credit Union, Sanford Health, Northwell Health, Riverside Healthcare, etc., are among “military friendly” organizations recognized for policies supporting veterans and military-connected employees.
Many companies that actively recruit veterans or maintain veteran-friendly workplaces also extend benefits such as flexible work arrangements, family support, or transition services. (See corporate “Veteran & Military Employee Support” programs)
Some large employers have internal hardship relief or employee relief funds to help workers facing crises, though these tend to vary by company and are not necessarily specific to military families.
Credit unions or banks serving military communities (e.g. Navy Federal Credit Union) often offer favorable lending terms, hardship assistance, and lower-fee services to military members and their families.
Partner programs through organizations like Blue Star Families and Operation Homefront often collaborate with corporate sponsors to provide discounts, relief, or services to military families.

While no single list can guarantee support everywhere, families should reach out to employers’ HR or their company’s veteran/military employee resource groups to see available benefits during crises.

Solution Minded GovTech Project Manager

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