White House Considers Denying Back Pay to Furloughed Federal Workers Despite 2019 Law

What's Happening?

President Trump is considering a proposal that could deny back pay to some of the approximately 600,000 furloughed federal workers once the government reopens. This consideration comes despite a 2019 law, the Government Employee Fair Treatment Act, which mandates that federal employees receive back pay after a government shutdown. The draft memo from the Office of Management and Budget suggests that Congressional action is required to enact back pay, contradicting previous guidance from the Office of Personnel Management. The memo's legal argument has sparked controversy, as it appears to conflict with the law signed by President Trump during his first term, which guarantees back pay for federal workers affected by shutdowns.

Why It's Important?

The potential denial of back pay to furloughed federal workers could have significant implications for the federal workforce and the broader economy. Federal employees, who rely on timely paychecks, may face financial hardships if back pay is withheld. This move could also exacerbate tensions between the Trump administration and Democrats, who are pushing for a clean continuing resolution to end the shutdown. The situation highlights the ongoing political struggle over government funding and the treatment of federal workers, potentially affecting public perception of the administration's handling of labor issues.

What's Next?

The draft memo is part of a broader strategy by the Trump administration to pressure Democrats during the shutdown. The administration has also threatened to cancel grant funding for energy projects and hold up transportation funding in states that did not support Trump in the 2024 election. As the situation develops, Congress may need to address the legal and financial implications of the memo. House Speaker Mike Johnson has indicated that there may be legal justification for the draft, while Senate Appropriations Committee member Sen. Patty Murray has criticized the proposal as 'lawless.' The outcome of this debate could influence future government shutdown negotiations and the treatment of federal employees.