Government Shutdowns

Government shutdowns are an unfortunate reality of federal employment. When Congress fails to pass appropriations bills or continuing resolutions, many agencies must cease operations and furlough employees. The financial and professional impacts can be severe, but with proper preparation, you can weather these storms.

This guide explains how shutdowns work, who gets affected, and most importantly — what you can do right now to prepare for the next one.

🏛️ Understanding Government Shutdowns

A government shutdown occurs when Congress fails to pass appropriations bills or continuing resolutions to fund federal government operations for the upcoming fiscal year. When funding lapses, many government agencies must cease non-essential operations and furlough employees until new funding is approved.

Shutdowns can be partial, affecting only specific agencies whose funding has lapsed, or complete, affecting most of the federal government. The severity and duration can vary significantly, from brief shutdowns lasting a few days to extended closures lasting several weeks.

🏥 Agency Exemptions: Why Some Agencies Stay Open

Not all federal agencies shut down during funding lapses. Some agencies continue normal operations due to different funding structures or legal requirements. Understanding these exemptions helps explain why your neighbor at VA?Department of Veterans Affairs might still be working while you're furloughed.

Agencies That Typically Remain Open

Veterans Affairs (VA)
The VA generally continues most operations during shutdowns because:

• Large portions of VA funding come from advance appropriations (funding approved for future years)
• Medical care is considered essential for protecting life and property
• Disability compensation and pension payments are mandatory spending
• Most VA hospitals and medical centers remain fully operational

Social Security Administration (SSA?Social Security Administration)
SSA continues operations because:

• Benefit payments are mandatory spending, not subject to annual appropriations
• Field offices typically remain open for essential services
• Disability determinations continue as essential functions

U.S. Postal Service (USPS?United States Postal Service)
The Postal Service operates independently because:

• Self-funded through postal revenues, not taxpayer appropriations
• Not subject to congressional funding decisions
• Mail delivery continues as normal

Funding Structure Differences

Multi-Year vs Annual Appropriations
Some agencies receive funding that extends beyond the current fiscal year:

• Multi-year appropriations: Funding can be used over several years
• No-year appropriations: Funding remains available until spent
• Annual appropriations: Must be used within the fiscal year (most affected by shutdowns)

Mandatory vs Discretionary Spending

• Mandatory spending: Required by law (Social Security, Medicare, veteran benefits)
• Discretionary spending: Subject to annual appropriations (most agency operations)

Partially Funded Agencies

Some agencies may have mixed funding sources:

• Department of Homeland Security: Essential security functions continue, administrative functions may shut down
• Department of Justice: Law enforcement continues, some administrative and legal services may be suspended
• Department of Defense: Military personnel continue working, some civilian positions may be furloughed

Why This Matters for Your Planning

Understanding agency exemptions helps you:

• Assess your risk: Know if your agency typically shuts down completely or partially
• Network strategically: Build relationships across different types of agencies
• Plan career moves: Consider funding stability when evaluating opportunities
• Understand the system: Recognize why some federal workers are affected differently

Sources: Department of Veterans Affairs, Social Security Administration, and U.S. Postal Service operational guidance.

⚖️ Essential vs Non-Essential Employees

During shutdowns, federal employees are classified into two critical categories that determine whether you work or get furloughed:

Essential (Excepted) Employees

Essential employees continue working during shutdowns because their roles are critical to:

• Public safety and national security
• Protection of life and property
• Essential activities that cannot be suspended

This includes many in law enforcement, air traffic control, border security, medical care at federal facilities, and certain defense operations. Essential employees must report to work but may not receive paychecks until the shutdown ends.

Non-Essential (Non-Excepted) Employees

Non-essential employees are furloughed and must stop working immediately when a shutdown begins. During furlough, you cannot:

• Perform any work duties
• Access government systems or facilities
• Check work email or voicemail
• Volunteer your services

Source: U.S. Office of Personnel Management (OPM.gov), "Furlough Guidance."

💰 Financial Impact: What You Need to Know

The most immediate concern for federal employees during shutdowns is financial uncertainty. Here's what happens to your money:

Paychecks and Back Pay

• Missed Paychecks: Both essential and furloughed employees typically don't receive paychecks during the shutdown
• Back Pay: Historically, all federal employees have received back pay once funding resumes, but this requires Congressional action
• Timing: Back pay comes after the shutdown ends, not during — you still face cash flow problems

Benefits During Shutdowns

• Health Insurance: FEHB?Federal Employees Health Benefits generally continues, but you may need to pay your portion of premiums
• Life Insurance: FEGLI?Federal Employees' Group Life Insurance coverage typically continues
• Retirement Contributions: TSP?Thrift Savings Plan and retirement system contributions may be affected
• Leave Accrual: Annual and sick leave typically don't accrue during furlough periods

Source: OPM.gov, "Guidance for Shutdown Furloughs."

📈 Career and Professional Impact

Beyond immediate financial concerns, shutdowns can affect your professional life:

• Performance Reviews: Work interruptions may impact annual performance evaluations and ratings
• Project Timelines: Critical projects and deadlines may be delayed, affecting your contributions
• Training and Development: Professional development opportunities may be postponed
• Public Service Mission: Many employees experience stress from being unable to serve the public
• Morale and Team Dynamics: Extended shutdowns can impact workplace relationships and team cohesion

🛡️ Financial Preparation Strategies

Build an Emergency Fund

This is your first line of defense against shutdown-related income disruption:

• Aim for 1-3 months of expenses in savings
• Start with small, regular contributions if building from scratch
• Keep emergency funds in easily accessible accounts
• Consider this fund separate from other savings goals

Review and Prepare Your Budget

• Identify essential vs. discretionary expenses
• Know which bills have grace periods or flexible payment options
• Prepare a "shutdown budget" with only critical expenses
• Contact creditors proactively if you anticipate payment issues

Understand Your Benefits

• Review health insurance continuation policies
• Know your life insurance and disability coverage during unpaid periods
• Check if your agency offers employee assistance programs
• Understand TSP loan and withdrawal options (use carefully)

Explore Financial Resources

• Research federal credit unions that offer shutdown assistance programs
• Look into local community resources and food banks
• Consider temporary income sources you could quickly activate
• Know your options for unemployment benefits (varies by state)

📢 Communication and Documentation

Stay Informed

• Identify official communication channels your agency will use during shutdowns
• Save important contact information for supervisors and HR
• Know how to access shutdown-specific guidance from your agency
• Sign up for agency emergency notifications if available

Document Your Work

• Keep records of current projects and their status
• Ensure critical information is accessible to essential personnel
• Update out-of-office messages and voicemail greetings as directed
• Secure important files and documents

Prepare Your Household

• Inform family members about shutdown procedures and potential impacts
• Discuss family budget adjustments and temporary lifestyle changes
• Plan childcare arrangements if schedules change
• Prepare for potential changes in family routines

🎯 Professional Development During Uncertainty

Skill Development

• Use potential downtime for professional development that doesn't require government resources
• Consider online courses, reading, or skill-building activities
• Network with professional associations and industry contacts
• Update certifications or pursue new qualifications

Alternative Income Preparation

Plan ahead for potential temporary income sources (while ensuring compliance with federal employment rules):

• Research temporary or part-time work opportunities
• Update your resume and professional profiles
• Consider freelance or consulting opportunities that don't conflict with federal employment
• Check ethics rules for outside employment during furloughs

⏰ During a Shutdown: Best Practices

For Furloughed Employees

• Comply with all restrictions on work-related activities — no exceptions
• Maintain professional communication with colleagues when appropriate
• Use time productively for personal development, family time, or job search preparation
• Stay informed through official channels about shutdown status
• Take care of your mental health — shutdowns are stressful

For Essential Employees

• Prioritize critical functions and manage increased workloads efficiently
• Document additional responsibilities taken on during staffing shortages
• Maintain morale and support furloughed colleagues when possible
• Practice self-care to manage stress from working without immediate pay
• Keep detailed records of work performed during the shutdown

🆘 Resources and Support

Government Resources

• Office of Personnel Management (OPM): Provides official shutdown guidance and policies
• Agency-Specific Resources: Each agency typically has dedicated shutdown information pages
• Employee Assistance Programs: Many agencies offer counseling and financial advice services
• Federal Labor Relations: For questions about employee rights during shutdowns

Financial Assistance

• Federal Credit Unions: Often provide special assistance programs during shutdowns
• Local Community Services: Food banks, utility assistance programs, and community support
• Professional Organizations: May offer emergency assistance to members
• State Unemployment Benefits: Eligibility varies by state and circumstances

Source: OPM.gov, "Furlough Guidance and Resources."

🚀 Looking Ahead: Long-Term Strategies

Career Resilience

• Diversify your skills to increase flexibility within federal service
• Build professional networks both within and outside government
• Consider cross-training opportunities that could make you essential personnel
• Stay current with industry trends and best practices

Financial Security

• Regularly review and adjust your emergency savings goals
• Consider additional income streams that comply with federal employment regulations
• Invest in financial literacy to better manage uncertainty
• Plan for retirement with potential career interruptions in mind

Advocacy and Civic Engagement

• Stay informed about budget processes and political developments
• Engage with federal employee unions and professional associations
• Participate in civic activities that support stable government funding
• Communicate with elected representatives about the impact of shutdowns