US Government Shutdown Looms: Here's What Will Still Work And What Won't, Who Gets Paid And Who Doesn't

(MENAFN- Live Mint) The possibility of a US government shutdown has resurfaced, with lawmakers struggling to reach a last-minute compromise. Republicans have proposed a short-term funding measure to keep the government open through November 21, but Democrats are demanding that it address healthcare concerns.

Democrats are seeking to reverse Medicaid cuts from President Donald Trump's recent mega-bill and extend tax credits that help make health insurance premiums more affordable for millions under the Affordable Care Act. Republicans have rejected these demands, leaving negotiations at a stalemate. The House of Representatives is not expected to be in session before a shutdown begins.

What happens during a shutdown?

A lapse in federal funding forces agencies to halt operations and furlough“non-excepted” employees. Excepted employees-those performing essential duties to protect life and property-remain on the job but do not receive pay until the shutdown ends.

During the 35-day partial shutdown in Trump's first term, approximately 340,000 of 800,000 federal workers were furloughed, while the rest continued working in essential roles.

Government work that continues

Many critical services remain operational:

Law Enforcement & Security: FBI agents, CIA officers, and air traffic controllers continue working. Members of the Armed Forces remain on duty.

Mandatory Spending Programs: Social Security checks, Medicare coverage, and veteran benefits continue to be processed and delivered. VA medical centers, outpatient clinics, and national cemetery burials remain open.

Postal Services: The US Postal Service is unaffected as it operates independently of federal funding.

Pay for furloughed employees

Furloughed federal workers are typically paid retroactively once funding resumes. In 2019, Congress passed a law guaranteeing retroactive pay for employees affected by a shutdown . Service members also receive back pay for missed salaries. However, delays in paychecks can cause significant financial stress for families.

Closures and agency decisions

Each federal agency develops its own shutdown plan, determining which employees remain on duty and which are furloughed. Historically, these plans have been made public via the Office of Management and Budget (OMB).

The Trump administration has signaled a more aggressive approach this time. An OMB memo warned agencies to consider mass layoffs and position eliminations in programs that are not funded through the President's priorities. This step goes beyond previous shutdown measures, where furloughed workers typically returned once Congress approved funding.

The proposed reduction-in-force could trigger significant upheaval in a federal workforce already affected by earlier cuts.

With neither party showing flexibility, the US faces the real possibility of a government shutdown. While critical services and essential workers will continue, the disruption could have major impacts on federal employees, government programs, and Americans reliant on federal services. The next weeks will be crucial in determining whether Washington can avert another crisis.

(With AP contribution)

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