Senate Reaffirms Back Pay For 41 Days Of Missed Wages As Shutdown Nears End (CORRECTED)

Editor’s note: The story has been corrected to reflect the correct designation of John Hutton.

As the U.S. government’s 2025 shutdown stretches into its 41st day, and several federal workers await relief, the Senate backed the funding bill to reopen the government on Monday. The stopgap measure not only funds agencies through January 2026 but reaffirms retroactive compensation for workers sidelined since Oct. 1.

Back Pay Process For Furloughed & Essential Federal Workers After Shutdown

At the heart of this process is the Government Employee Fair Treatment Act of 2019 (GEFTA), a bipartisan safeguard ensuring “all federal employees shall receive pay for the period of the lapse in appropriations” starting after Dec. 22, 2018.

The package still requires approval from the House of Representatives and President Donald Trump. Processing of the pay begins immediately upon the bill’s enactment.

OPM and the Department of the Treasury direct agencies to recalibrate payroll systems, treating furlough days as paid hours for salary, overtime, and benefits accrual, per OPM’s updated shutdown furlough guidance (January 2024).

Furloughed workers accrue annual and sick leave as if on duty, avoiding penalties under the Fair Labor Standards Act. For the biweekly cycle ending Nov. 15, most expect lump-sum deposits by Nov. 21-28, including October-November arrears plus current earnings—mirroring the 2019 timeline, where pay resumed within two weeks of reopening, according to the Partnership for Public Service.

See Also: As Record 40-Day Shutdown Nears End, History Shows Stocks Rally 12 Months Later With S&P 500 Averaging 12.3% Gain

How Was GEFTA Enacted?

GEFTA, enacted as Public Law 116-1 and signed by President Donald Trump during his previous term, amended the Antideficiency Act (31 U.S.C. § 1341) to mandate back pay for both furloughed employees—sent home without duties—and excepted “essential” staff, like air traffic controllers and border agents, who labored unpaid.

“The law requires agencies to issue back pay at the earliest date possible after the lapse ends, regardless of scheduled pay dates,” states the Office of Personnel Management (OPM) in its January 2019 Compensation Policy Memorandum 2019-04, which guided the 35-day 2018-2019 shutdown’s resolution.

Controversy Behind Pay For Furloughed Workers

An October 2025 OMB draft memo, obtained by Axios, controversially argued the law required explicit congressional funding, contradicting OPM’s September 2025 guidance affirming automatic pay.

Bipartisan lawmakers, including Sens. Tim Kaine (D-Va.) and Lisa Murkowski (R-Alaska), rebuked this in an Oct. 21 letter to OMB Director Russell Vought, calling it “unlawful” and vowing legal challenges.

The National Active and Retired Federal Employees Association echoed: “GEFTA is bipartisan law… passed overwhelmingly,” per NARFE staff vice president of policy and programs John Hatton.

Market Turns Positive On Reopening Optimism

The futures of the S&P 500, Nasdaq 100, and Dow Jones indices rose after the news of the Senate’s passing of the funding bill.

The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Monday. The SPY was up 0.90% at $677.00, while the QQQ advanced 1.49% to $618.82, according to Benzinga Pro data.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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