Overview

• Axios reported, and officials confirmed to CNN and NBC News, that an OMB draft argues furloughed employees are not automatically owed retroactive pay after the shutdown.
• The memo hinges on a new reading of the 2019 Government Employee Fair Treatment Act, citing amended language that pay is provided “subject to the enactment of appropriations Acts ending the lapse.”
• OMB quietly removed references to the 2019 back pay guarantee from its shutdown FAQ last week, while OPM’s Sept. 28 guidance still states furloughed and excepted employees will receive retroactive pay.
• Administration officials describe the stance as increasing pressure on Senate Democrats to pass a clean continuing resolution, even as legal challenges from unions are expected.
• The White House maintains excepted employees working without pay would still receive back pay, and CBO estimates roughly 750,000 workers are currently furloughed each day.