A shutdown furlough is the placing of an employee in temporary nonduty, nonpay status because of lack of funds, not disciplinary reasons. It occurs when appropriations lapse and agencies must halt all but excepted activities under the Antideficiency Act.
Scope of the Challenge
The government shutdown poses significant challenges for federal workers and organizations alike. SHRM’s latest survey shows nearly half of HR professionals feel unprepared for a shutdown, with 47% reporting minimal or no plans in place. At SHRM, we bring you timely insights, resources, and support to help you respond effectively and safeguard your workforce.
The government shutdown affects real people, families, and communities. We are committed to supporting one another with civility, understanding, respect, and compassion. SHRM calls on Congress to work together to pass legislation to end the government shutdown.
Key Impacts
The federal fiscal year ended at 12:01 a.m. Wednesday, October 1. with no resolution on an appropriations bill or stopgap measure, resulting in a federal shutdown. Under the Antideficiency Act, agencies must halt all but essential services.
Private employers and contractors experience delays in permits, grants, and services like E-Verify. Federal agencies (EEOC, NLRB, OSHA) suspend most functions, pausing investigations and data releases.
Up to 1 in 3
non-USPS federal employees could be affected by a government shutdown.
Up to 860K
at its peak, the estimated number of non-USPS federal workers per day at risk of facing furlough.
25%
of organizations would see operational disruption in just 1–3 days.
64%
organizations expect to see operational disruption if the shutdown lasts more than a week.
49%
organizations that expect to miss yearly financial goals if the shutdown exceeds a week.
62%
of organizations worry about employee well-being; 64% about morale and productivity.
80%
of workers anticipate increased stress; 76% expect morale to drop; 75% foresee reduced focus and productivity.
89%
of workers believe local communities will be harmed, eroding trust in institutions.
Beyond the Headlines: Real Lives, Real Impact
The government shutdown isn’t just a policy debate — it’s a crisis affecting the daily lives of hundreds of thousands of SHRM members, their families, and the workers they support across their organizations.
Sudden income loss threatens housing, food security, and stability.
Working caregivers are especially vulnerable:
- 59% report financial concerns
- 51% worry about job stability
- Nearly half cite food insecurity and mental health challenges
These aren’t abstract numbers — they’re real experiences happening in our communities right now.
FEATURED VIDEO
Advocacy in Action
Emily M. Dickens, J.D., SHRM’s chief of staff, head of government affairs & corporate secretary, shares SHRM's perspective and actionable steps for HR professionals during the shutdown.
Tell Congress: End the Shutdown Now
Lawmakers need to understand the real consequences of a shutdown.
Top Resources to Navigate the 2025 Government Shutdown
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Find out how President Donald Trump’s threat to deny back pay to furloughed workers during the shutdown contradicts a 2019 law and may spark legal challenges.
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Just because the federal government may be on the verge of another shutdown doesn't mean the work stops for HR. Internal investigations should move forward.
Furloughed federal workers and employees who are deemed necessary and continue to work will not be paid during the shutdown. But they will be granted back pay once funding is restored.
SHRM’s official response to the 2025 government shutdown highlighting impacts on workers, workplaces, and HR, while urging leaders toward swift resolution.
SHRM’s roadmap for federal employees transitioning careers. Tools for job search, resume building, networking, interview prep, and navigating the shift from public service to private sector.
Official information on shutdown furloughs — including employee rights, pay, leave, and benefits.
Federal Agency Contingency Plans
Q&A: Understanding the Government Shutdown
Excepted employees perform tasks that, by law, must continue during a lapse (e.g., emergency work, protection of property, or activities necessary to execute an orderly shutdown).
Exempt employees are those whose functions are funded by sources other than annual appropriations and are not affected by the shutdown.
Furloughed employees are barred from working except for minimal activities needed to suspend agency operations.
According to the Government Employee Fair Treatment Act of 2019, all federal employees affected by a lapse in appropriations are entitled to retroactive pay as soon as possible after the shutdown ends, regardless of scheduled pay dates.
Paid leave scheduled during a shutdown is canceled. Employees may not use previously approved paid time off during a lapse in appropriations, except for certain excepted employees under specific legal provisions.
Health, dental, vision, and life insurance coverage continues even if premium payments are delayed; missed payments are withheld from retroactive pay.
Furloughed employees may qualify for unemployment compensation, subject to state law.
Employees must receive written notice of furlough as soon as possible, with information on appeal, grievance, and complaint rights (e.g., Merit Systems Protection Board, EEO, Office of Special Counsel).
According to SHRM research, organizations are responding by:
Implementing cost-saving measures (35%)
Hiring freezes or delaying onboarding (31%)
Delaying or cancelling projects (28%)
Adjusting staffing levels (18%)
Five Steps to Mitigate Shutdown Fallout
Facing Shutdown Challenges? Get Expert HR Advice.
From furloughs and benefits to compliance and employee communications, the government shutdown brings complex questions for HR. SHRM members have exclusive access to Ask an Advisor for:
- Personalized guidance on managing furloughed employees, pay, and benefits issues.
- Compliance support for evolving federal and state requirements.
- Best practices for communicating with your workforce during uncertainty.
Not a member? Join now!
SHRM’s Commitment
4 in 5 US workers agree that a lack of civility among government leaders is contributing to the shutdown. Over 75% say a shutdown would weaken their trust in the federal government.
In the SHRM Government Affairs bullpen, our team is working tirelessly for 340,000 members and the 362 million lives they touch. We lead with integrity and civility, advocating for solutions that benefit all stakeholders — employees, employers, and communities.
SHRM encourages members to:
- Engage respectfully with colleagues, leaders, and policymakers
- Listen with empathy to the concerns of those affected
- Advocate constructively for solutions that support stability and well-being
- Model integrity and compassion in every interaction