Should federal employees be worried about the impacts of a possible government shutdown? Maybe.
Congress is currently at an impasse over what is called a "budget continuing resolution," meaning that the lack of a spending agreement could lead to a partial government shutdown starting October 1, 2025. Both Democrats and Republicans are holding tightly onto their respective demands, and federal employees should be prepared for the possibility of White House-directed reduction-in-force (RIF) plans if a spending agreement is not in place by October 1.
White House to Agencies: 'Have RIF Plans in Place'
In a memo to federal agencies on September 24, the White House Office of Management and Budget (OMB) directed federal agencies to prepare RIF plans in case of a government shutdown — specifically targeting federal employees who work for programs considered "not legally required" to continue in the event of a partial government shutdown.
The email memo states that in the event of an October 1 shutdown, programs that did not benefit from an infusion of mandatory appropriations "will bear the brunt of a shutdown," but if Congress successfully passes a "clean" continuing resolution prior to September 30, "the additional steps outlined in this email will not be necessary."
Further, the memo states that "consistent with applicable law, including the requirements of 5 C.F.R. part 351, agencies are directed to use this opportunity to consider Reduction in Force (RIF) notices for all employees in programs, projects, or activities (PPAs) that satisfy all three of the following conditions: (1) discretionary funding lapses on October 1, 2025; (2) another source of funding, such as H.R. 1 (Public Law 119-21) is not currently available; and (3) the PPA is not consistent with the President's priorities."
That being said, RIFs, in addition to "shutdown furloughs" that have occurred in previous government shutdowns, occur when there is a lapse in annual appropriations, according to the U.S. Office of Personnel Management (OPM). Therefore, RIFs and shutdown furloughs can occur at the beginning of a fiscal year, if no funds have been appropriated for that year, or upon expiration of a continuing resolution, if a new continuing resolution or appropriations law is not passed.
Government Shutdown Impact on Federal Employees
A government shutdown could impact on a wide array of federal services and programs and possibly lead to a temporary lack of pay for federal employees. Further, in a RIF situation, an affected agency would have to shut down any activities funded by annual appropriations that are not excepted by law. Typically, an agency will have little to no lead time to plan and implement the RIFs. The current push for permanent RIFs, as opposed to shutdown furloughs, appears to be part of efforts from the White House to reduce the size of the federal workforce.
In previous government shutdowns, shutdown furloughs have occurred, but were generally temporary, and employees often were reinstated with back pay once funding resumed.
Fortunately for federal employees, the Government Employee Fair Treatment Act of 2019 (S. 24) requires federal employees who are furloughed or required to work during a lapse in appropriations resulting from a government shutdown be compensated for the period of the lapse.
The most recent (and longest) government shutdown occurred in late 2018 and lasted into 2019 during President Donald J. Trump's first presidential term, when the government was partially shut down for five weeks.
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