Trump Administration Reverses Stance on Furloughed Federal Workers' Back Pay (2025)

The uncertainty over whether furloughed federal employees would receive back pay has sparked confusion and concern—but here’s where it gets controversial: on Tuesday, the Trump administration claimed these workers weren’t guaranteed compensation, and then just one day later, it reversed course and sent out notices assuring back pay would be provided.

To understand this flip-flop, consider the case of the Internal Revenue Service (IRS), among many government agencies that initially managed to keep staff working during the shutdown by tapping into existing funds. However, by Wednesday morning, those backup funds had run dry. The IRS then began issuing furlough notices to tens of thousands of employees, informing them they would be immediately placed on unpaid leave until the government reopens.

The furlough letters mostly contained standard wording, but one section stood out: it cited the Government Employee Fair Treatment Act of 2019, stating that federal employees furloughed during a funding lapse must be paid for the downtime as soon as possible after the shutdown ends—even if that falls outside regular pay schedules. This passage was striking because the Office of Management and Budget (OMB) had previously removed any mention of this 2019 law or back pay guarantees from their official shutdown guidance.

In fact, following Axios’s report on Tuesday that the Trump administration planned to interpret the back pay law narrowly—applying it only to the 2019 shutdown—OMB issued new legal guidance endorsing that view. This move challenged the broader understanding of the 2019 law, originally passed by Trump during the longest government shutdown ever, which explicitly stated it covered any funding lapse starting on or after December 22, 2018.

Both Democratic and Republican lawmakers firmly rejected the Trump administration’s reinterpretation, arguing the law clearly ensures retroactive pay for all furloughed federal workers going forward. Legal experts weighed in, emphasizing that the statute’s straightforward wording and legislative history unmistakably show Congress intended the back pay guarantee to apply permanently, not just once. Moreover, even the Trump administration’s own 2019 guidance confirmed this law’s ongoing applicability.

For IRS employees receiving furlough notices, the inclusion of the back pay assurance was a relief. The IRS, which is expected to furlough about 35,000 staff members—nearly half of its workforce, according to Bloomberg—confirmed this promise in communications. "It says we get paid, in writing!" said one furloughed IRS employee. "This will be extremely helpful to the union when Trump tries to not pay us."

This episode raises a provocative question: Can a government administration selectively interpret laws that affect workers’ livelihoods, or should the law’s original intent always hold sway? How do you feel about this sudden policy reversal—do you think it’s a justified legal interpretation or a political maneuver? Share your thoughts and join the debate below!

Erich Wagner contributed to this report.

Trump Administration Reverses Stance on Furloughed Federal Workers' Back Pay (2025)

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