OMB's Controversial Move: Removing Backpay Guarantee for Furloughed Federal Workers (2025)

Here's something that should alarm every federal worker in America right now: A critical legal protection guaranteeing your paycheck after a government shutdown may be under threat—and the changes are happening behind closed doors.

In a move that's raising serious red flags, the Office of Management and Budget has quietly scrubbed mentions of a crucial 2019 law from its official shutdown guidance. This isn't just bureaucratic housekeeping—it could signal something far more troubling for the more than 620,000 federal employees currently sitting at home without pay.

But here's where it gets controversial...

Let's rewind to understand what's at stake. The document in question is OMB's "Frequently Asked Questions During a Lapse in Appropriations"—essentially the rulebook that explains what happens to federal workers when the government shuts down. Until October 3rd, this guidance prominently featured information about the Government Employees Fair Treatment Act, a bipartisan piece of legislation that became law back in 2019.

What does this law do? It's actually pretty straightforward: it guarantees that every federal employee—whether they're sent home on furlough or required to work without immediate payment—will receive their full backpay once Congress finally passes a funding bill and the government reopens. Before this law existed, there was no such guarantee. Instead, Congress had to vote separately after each individual shutdown to decide whether furloughed workers would get paid for the time they lost. It was an additional layer of uncertainty piled on top of an already stressful situation.

The 2019 law emerged from the longest government shutdown in American history—a grueling 35-day partial closure during President Trump's first administration. Senators Chris Van Hollen and Ben Cardin, both Democrats from Maryland, championed the legislation to ensure federal workers would never again face the anxiety of wondering whether they'd eventually be compensated for their lost wages. The bill passed with overwhelming bipartisan support: the House approved it with only seven opposing votes, the Senate passed it by voice vote without a single objection, and President Trump himself signed it into law.

Now here's what changed. The September 30th version of OMB's guidance document clearly stated: "The Government Employee Fair Treatment Act of 2019 (Public Law 116-1) provides that upon enactment of appropriations to end a lapse, both furloughed and excepted employees will be paid retroactively as soon as possible after the lapse ends, regardless of scheduled pay dates." It also referenced additional guidance from the Office of Personnel Management on this topic.

But when OMB released an updated version on October 3rd, that entire sentence had vanished. References to OPM's related guidance? Also gone. In fact, the removal of this language was the only substantive change between the two versions of the document, aside from updating the revision date.

And this is the part most people miss...

Interestingly, OPM itself hasn't followed suit. Their shutdown guidance, last updated on September 28th, still explicitly promises that "employees who were furloughed as the result of the lapse will receive retroactive pay for those furlough periods" and that "retroactive pay will be provided on the earliest date possible after the lapse ends, regardless of scheduled pay dates." So we now have two different federal agencies seemingly telling different stories about the same legal requirement.

When Government Executive, the publication that first noticed this discrepancy, reached out to the White House for an explanation on Monday evening, things took an even more alarming turn. The very next day, Axios reported that senior administration officials were actively developing guidance arguing that furloughed federal workers might not be entitled to backpay after all. Their strategy? Claim that the 2019 law only applied to that specific 2019 shutdown, not to any future government closures.

There's just one massive problem with that interpretation: the law itself says something completely different. The Government Employees Fair Treatment Act explicitly states that it applies to "any lapse in appropriations that begins on or after December 22, 2018." That's not ambiguous language. It's not limited to a single shutdown. It's a permanent guarantee that covers every government funding lapse from that date forward, including the current one.

Senator Van Hollen didn't mince words when responding to reports of the administration's potential reinterpretation. "The law is the law," he stated firmly. "After the uncertainty federal employees faced in the 2019 Trump Shameful Shutdown, Sen. Cardin and I worked to ensure federal employees would receive guaranteed back pay for any future shutdowns. That legislation was signed into law—and there is nothing this administration can do to change that."

Matt Biggs, who serves as national president of the International Federation of Professional and Technical Engineers, called OMB's decision to delete references to the law "highly suspicious." He emphasized the legislation's bipartisan credentials and overwhelming support when it passed. "Despite the OMB director's clear disdain for our federal workforce, he can't unilaterally ignore a law that overwhelmingly passed both chambers of Congress and was signed by President Trump himself," Biggs argued. "The OMB needs to stop playing games with the livelihoods of federal workers and their families."

It's worth noting that Russ Vought, the current OMB director, has been a controversial figure when it comes to federal workforce issues. His approach to managing the bureaucracy has drawn criticism from employee unions and workforce advocates who argue his policies demonstrate hostility toward career civil servants.

As the shutdown continues, the number of furloughed employees keeps climbing past the current 620,000 mark. Each day without resolution means more families struggling to pay mortgages, more workers wondering if they should look for other employment, and now—potentially—more uncertainty about whether they'll ever be compensated for this forced time off.

So here's the question that should spark serious debate: Can an administration simply reinterpret or ignore a law that was passed with bipartisan support and signed by a previous version of the same president? Does removing guidance about a legal requirement somehow make that requirement disappear? And perhaps most importantly, if the executive branch can selectively decide which laws to acknowledge in official guidance documents, what does that mean for the rule of law itself?

This situation raises fundamental questions about executive power, the treatment of federal workers, and whether political appointees can override clear statutory language through creative interpretation. Federal employees deserve clarity and respect, not bureaucratic sleight of hand that leaves them wondering whether their legal protections still exist.

What do you think? Is this a legitimate legal interpretation, or is it an attempt to circumvent a law that's inconvenient for the current administration? Should federal workers be guaranteed backpay after shutdowns, or should that decision be made case-by-case? Drop your thoughts in the comments—especially if you're a federal employee affected by this uncertainty. Let's hear where you stand on this controversy.

OMB's Controversial Move: Removing Backpay Guarantee for Furloughed Federal Workers (2025)
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