OMB Removes Backpay Guarantee for Furloughed Federal Workers Amid Shutdown

What's Happening?

The Office of Management and Budget (OMB) has revised its shutdown guidance, removing references to a 2019 law that guaranteed backpay for furloughed federal workers. This change was made quietly on September 30, ahead of the current government funding lapse. The 2019 Government Employees Fair Treatment Act, signed into law by President Trump, ensured that both furloughed and excepted employees would receive retroactive pay once appropriations were restored. However, the latest OMB document omits this assurance, sparking concern among federal employees and lawmakers. The Office of Personnel Management (OPM) still maintains that furloughed workers will receive backpay after the shutdown ends. The White House has suggested a new interpretation of the law, claiming it only applied to the 2019 shutdown.

Why It's Important?

The removal of backpay guarantees could have significant implications for over 620,000 furloughed federal employees, potentially affecting their financial stability. This decision has drawn criticism from lawmakers, including Sen. Chris Van Hollen and Sen. Tim Kaine, who argue that the law clearly mandates backpay for any future shutdowns. The move could lead to legal challenges and further complicate negotiations to end the shutdown. The situation underscores the ongoing political tensions surrounding government funding and the treatment of federal workers, who are often caught in the crossfire of budgetary disputes.

What's Next?

As the shutdown continues, pressure is mounting on both political parties to reach a resolution. Legal challenges may arise if the administration persists with its interpretation of the backpay law. Lawmakers and federal employee unions are likely to push back against the OMB's decision, potentially leading to court battles. The outcome of these disputes could set important precedents for how future shutdowns are managed and how federal workers are compensated during funding lapses.