OCTOBER 10, 2025
Federal workers are being told to brace for a government shutdown. Anna Moneymaker/Getty Images
Not seeing the effects of the government shutdown yet? Federal workers are about to feel it in their wallets.
The 658,000 federal workers getting paid today are receiving lighter-than-normal checks thanks to the shutdown, and it’s set to get worse. BI spoke to nearly a dozen workers in various departments who are either furloughed or working without pay.
The government shutdown is dragging on, impacting public sites and federal paychecks. ANDREW CABALLERO-REYNOLDS/AFP via Getty Images
These paychecks only include three days of missed pay from October 1, when the shutdown started, through October 3. But if things continue, it will only escalate.
On Tuesday, another 686,000 workers will receive partial paychecks. On Wednesday, 1.7 million military members will miss their entire paychecks.
One federal employee, who has worked in government for more than 30 years, told BI she won’t be able to afford her medications if the shutdown continues. A NASA employee said some workers are likely to incur credit-card debt.
The White House, meanwhile, has maintained its stance that Democrats are holding things up.
“The Democrats’ decision to shut down the government over free health care for illegal aliens is hurting all Americans,” Abigail Jackson, a White House spokesperson, said in a statement to BI.
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Reopening the government might not be the end of employees’ problems.
Furloughed employees aren’t necessarily guaranteed back pay, according to a draft memo from the Office of Management and Budget seen by Business Insider.
It’s not clear if that’s enforceable, as a 2019 law is widely understood to guarantee back pay following a government shutdown. And guidance last month from the White House Office of Personnel Management states, “retroactive pay will be provided on the earliest date possible.”
If the White House were to withhold pay, the impact could go beyond just the workers.
USAA, a lender that caters to military, veterans, and their families, is offering interest-free loans equivalent to the paychecks of impacted federal workers. The bank approved and funded $85 million for roughly 23,000 loans during the first 24 hours the program was opened. Navy Federal Credit Union is also offering a similar program.
And it’s not just banks helping to bridge the gap during the government shutdown, it’s also … the government.
The Maryland Department of Labor’s recently launched Federal Shutdown Loan program has already received more than 300 applications.
Courtesy/Source: This post originally appeared in the Business Insider
