Overview

• Axios reports that a draft memo from the Office of Management and Budget argues the Government Employee Fair Treatment Act of 2019 does not automatically ensure back pay for furloughed staff.
• The analysis hinges on amended GEFTA language stating compensation is "subject to the enactment of appropriations Acts ending the lapse," which the White House reads as requiring a specific appropriation.
• Senior officials say the approach could affect up to 750,000 workers and is intended to increase pressure on Senate Democrats to pass a clean continuing resolution.
• The administration distinguishes furloughed employees from those still working without pay, asserting only the latter are automatically entitled to retroactive pay once funding resumes.
• Labor attorneys and policy analysts reject the memo’s legal basis, as the move follows other OMB actions such as planning for workforce reductions, freezing billions for projects, and leveraging a recent Supreme Court ruling on a pocket rescission.