President Trump addressed the press in the Oval Office on Tuesday while meeting with Canadian Prime Minister Mark Carney.
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President Trump has raised the possibility that a portion of the approximately 600,000 federal employees furloughed during the government shutdown might not receive back pay once operations resume, despite a 2019 bipartisan law designed to guarantee compensation for federal workers after such shutdowns.
During a press interaction in the Oval Office on Tuesday, Trump seemed to endorse a draft memorandum from the White House that suggests withholding pay from certain federal workers.
“It really depends on who we’re discussing,” Trump remarked. “The Democrats have put many people in precarious situations, but generally, we intend to support our employees. However, some individuals may not merit the same treatment, and we will handle those cases differently.”
When questioned about the legality of this stance, Trump responded, “I adhere to what the law states.”
This statement came amid inquiries about a confidential draft memo from the Office of Management and Budget (OMB), initially reported by Axios and later confirmed by a senior White House official who spoke on condition of anonymity. The memo has not been officially released to the public.
The dispute over federal employee compensation marks the latest tactic by the Trump administration to pressure Democrats into approving a clean continuing resolution, without additional provisions such as extending healthcare subsidies for millions of Americans.
The legal rationale in the draft memo conflicts with guidance from the Office of Personnel Management (OPM) and the explicit language of the Government Employee Fair Treatment Act of 2019, which President Trump signed during his first term. This law clearly mandates that federal employees “shall be paid” after a shutdown ends, regardless of whether they were furloughed or continued working.
Enacted following the historic 35-day shutdown in 2018, this bipartisan legislation amended the Antideficiency Act to automatically provide back pay for any funding lapse starting on or after December 22, 2018. Prior to this, Congress had to pass separate legislation to authorize retroactive payments after a shutdown.
The White House memo highlights a clause stating that employees will be compensated “at the earliest date possible after the lapse in appropriations ends, regardless of scheduled pay dates, and subject to the enactment of appropriations Acts ending the lapse,” interpreting this to mean that Congressional approval is necessary for back pay.
OMB guidance issued on September 30 acknowledged the automatic restoration of pay under the 2019 law, stating, “The Government Employee Fair Treatment Act of 2019 (Public Law 116-1) ensures that once appropriations are enacted to end a lapse, both furloughed and excepted employees will receive retroactive pay as soon as possible, irrespective of scheduled pay dates. Additional agency guidance is available from OPM.”
However, an updated version of this guidance released on October 3 omitted this paragraph.
This draft memo is part of a broader White House strategy to exert pressure on Democrats during the shutdown, including attempts to cancel funding for energy grants and delay transportation funds in states that did not support Trump in the 2024 election. The administration has also threatened large-scale layoffs within federal agencies, though these have yet to be implemented.
Deepa Shivaram contributed to this article.
