Potential government shutdown impacts: Millions of federal workers at risk of furlough

A White House office is talking to agencies ahead of a possible shutdown.

December 20, 2024, 1:36 PM

If Congress fails to pass the continuing resolution to fund the government by the end of the day Friday, millions of federal workers could head into the holidays without paychecks. They could be furloughed or be asked to work without pay.

That includes some members of the military, and other critical government workers, such as TSA agents and air traffic controllers, just as the holiday travel craze begins.

Some contractors with the federal government are not guaranteed back pay, like federal employees, which could have devastating consequences for workers living paycheck to paycheck.

Employees at the Federal Bureau of Prisons (BOP) are bracing for a shutdown, and one union leader is calling on Congress to fund the government. BOP employees are deemed essential, so they will have to work regardless if they are paid.

"The impending shutdown threatens the basic financial security of our dedicated law enforcement personnel," Jon Zumkehr, president of AFGE Local 4070, said.

Zumkehr said during the last long-term shutdown in 2019, many staff were forced to get other forms of employment to make ends meet.

Despite the efforts to avert the shutdown, plans are still being made in case a deal is not made before Friday night's deadline. The White House's Office of Management and Budget (OMB) has already been in touch with agencies about their plans in case of a government shutdown, an OMB official told ABC News. The official said the initial communication with agencies about their shutdown plans happened last Friday.

That communication is part of OMB's procedure, which is required by law, stating that one week prior to appropriations bills expiring, the office must "communicate with agency senior officials to remind agencies of their responsibilities to review and update orderly shutdown plans" and "share a draft communication template to notify employees of the status of appropriations."

A TSA employee work behind plexiglass shields at Ronald Reagan National Airport, July 22, 2020.
Evelyn Hockstein/For The Washington Post via Getty Images, FILE

The procedure also states that the White House office must continue communicating with agencies ahead of any anticipated shutdown. The policy states that about two business days before the expected lapse in funding, "agencies should notify employees of the status of funding."

ABC News Senior Congressional Correspondent Rachel Scott talked with one federal contractor as a shutdown loomed last year, who said the 35-day government shutdown in 2018 took her months to recover from financially.

Lawmakers in Congress continue to negotiate a deal that would keep the government funded. House Majority Leader Steve Scalise told ABC News on Wednesday that lawmakers had a "productive" late-night meeting in the House Speaker Mike Johnson's office.

"We are going to continue to work through the night to the morning to get an agreement we can bring to the floor," Scalise said, adding that he hoped the House could "get it resolved" on Thursday.

The US Capitol Building in Washington, D.C.
STOCK PHOTO/Adobe Stock

Johnson's original plan called for extending government spending at current levels until March and added other provisions like relief for disaster victims and farmers and a pay raise for members of Congress. That plan is in jeopardy as President-elect Donald Trump and Elon Musk have pushed for Republicans not to accept that deal.

Trump has pushed Republicans to deal with the debt limit before he takes office, saying that if they don't, "he'll have to 'fight 'til the end' with Democrats."

In a joint statement Wednesday afternoon, Trump and Vice President-elect JD Vance called on Congress to "pass a streamlined spending bill that doesn't give [Senate Majority Leader] Chuck Schumer and the Democrats everything they want."

What will happen to U.S. military members and DOD civilians if there's a government shutdown?

If there is a government shutdown, the U.S. military operations overseas and domestically will continue, but U.S. service members won't be paid during that time.

Defense Department civilians will be given guidance to show up at their offices on Monday morning and will have four hours to sign a memo that acknowledges they will not be working, set up their out-of-office emails and voicemails and turn off their phones and laptops so they will be unable to work from home during the shutdown. If employees happen to be on time off during the shutdown, they will be able to provide a digital signature of that memo and will turn off their devices. They will also provide personal email addresses so they can be contacted once the shutdown is over.

However, a good number of DOD civilians will be "excepted" or deemed essential and have to come into work, but without pay.

Both U.S. military personnel and DOD civilians are guaranteed retroactive pay after the shutdown ends under the Government Employee Fair Treatment Act of 2019.

Contractors who work for the Pentagon will continue to work if their contract is funded through the current year, but if a contractor is not under an already-funded contract, then he or she will not get paid during the shutdown.

ABC News' Rachel Scott, Sarah Kolinovsky, Luke Barr, Luis Martinez and Lauren Peller contributed to this report.

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