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With No Deal in Sight, Federal Employees Brace for Missed Pay

Dailyfed Staff

October 21, 2025

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Federal employees will soon feel the full effect of a government shutdown that has entered its 21st day, with no clear path toward reopening. The funding lapse began on October 1, and what began as a routine budget standoff has now become one of the longest shutdowns in U.S. history.

At the heart of the impasse is a political showdown between House Republicans and Senate Democrats. House Speaker Mike Johnson has pushed for a “clean” continuing resolution free of policy add-ons, while Senate Democrats insist on including healthcare provisions such as Affordable Care Act subsidy extensions. With neither side yielding, the stalemate has left hundreds of thousands of federal workers in limbo and disrupted essential government services.

Many agencies are now operating at sharply reduced capacity. Non-essential employees have been furloughed, while “excepted” workers, those deemed critical to safety or national security, continue to report for duty without pay. The Federal Aviation Administration and Transportation Security Administration are both facing staff shortages that have led to flight delays and increased operational strain. Federal courts warned they could no longer sustain full operations beyond October 20 without renewed funding. Economists estimate the shutdown is shaving 0.1 to 0.2 percent off weekly GDP growth for each additional week it continues.

The financial toll on federal employees is mounting. According to the Bipartisan Policy Center, civilian workers paid through annual appropriations are set to miss their full paycheck on October 24 if funding is not restored. While the Defense Department managed to cover the October 15 payday for active-duty service members, that lifeline may not extend to the next payday at the end of the month. By mid-October, roughly 750,000 federal employees had been furloughed, and another 690,000 were working without pay.

For many, the financial strain is already severe. Some paychecks have been reduced to reflect unpaid days after October 1, and the longer the lapse drags on, the worse the impact will be. If the shutdown continues through the month’s end, nearly 1.8 million paychecks could be withheld from civilian workers alone, representing about $400 million in lost wages each day. While a few frontline employees, such as Department of Homeland Security law-enforcement officers, have been paid through alternative funding, most have not.

If the shutdown surpasses 35 days, it will become the longest in U.S. history. The next major pressure points come with civilian pay days later this week and the October 31 military payday. Each missed check raises both the human and political cost of the standoff. For now, Congress remains deadlocked, and federal employees are left wondering not just when they will get back to work, but when they’ll be paid for it.

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