Furlough explained: What happens in a government shutdown

Updated: October 1, 2025, 3:30 p.m. ET (12:30 p.m. PT)

What happened

A furlough is a temporary, unpaid leave from work ordered by an employer. In the federal government, furloughs happen when Congress does not pass funding and a shutdown begins, or during budget cuts. Most "non-excepted" federal workers must stop work and wait for funding to resume. Those in "excepted" roles continue working without pay until funding is restored. Federal employees receive back pay after a lapse ends under current law [[source:https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/]], [[source:https://crsreports.congress.gov/product/details?prodcode=RL34680]].

During a shutdown, agencies follow contingency plans approved by the Office of Management and Budget (OMB). These plans detail which services pause and which continue for safety of human life or protection of property [[source:https://www.whitehouse.gov/omb/information-for-agencies/agency-contingency-plans/]].

Key terms: "Excepted" employees must work during a lapse; "exempt" employees are funded by sources not affected by the lapse; "non-excepted" employees are furloughed.

Why it matters

Furloughs interrupt paychecks and services. Households may need to budget for delayed income. Businesses that rely on federal workers or permits can face delays. Past shutdowns reduced economic output. The Congressional Budget Office estimated the 2018–2019 shutdown lowered GDP by $11 billion, with $3 billion permanently lost [[source:https://www.cbo.gov/publication/54937]]. Critical services like Social Security checks and air traffic control continue, but many administrative functions pause [[source:https://www.usa.gov/government-shutdown]].

Questions people ask include: Is the government shut down? What does it mean when the government shuts down? What happens when the government shuts down? This guide explains furlough rules and what to do if a shutdown occurs.

Context & background

Fiscal years for the federal government run from October 1 through September 30. If Congress does not enact appropriations or a continuing resolution by the deadline, a funding lapse triggers a partial or full federal government shutdown. Agencies then implement shutdown furloughs based on the Antideficiency Act, which bars most spending without appropriations [[source:https://crsreports.congress.gov/product/pdf/RL/RL34680]], [[source:https://www.gao.gov/antideficiency-act]].

Furlough types:

• Shutdown furlough: Triggered by a funding lapse. Non-excepted staff are furloughed. Excepted staff work without pay but must be paid after funding resumes [[source:https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/]].
• Administrative furlough: Planned reductions (e.g., sequestration or agency-specific cuts). Rules differ from shutdown furloughs, and back pay is not automatic [[source:https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/]].

Back pay: The Government Employee Fair Treatment Act of 2019 requires retroactive pay for furloughed and excepted federal employees after a lapse ends. Contractors are not guaranteed back pay; policies vary by agency and contract [[source:https://www.congress.gov/bill/116th-congress/senate-bill/24]], [[source:https://www.gao.gov/products/gao-20-101]].

Service impacts in prior shutdowns included closures or delays at national parks, IRS customer service, small business lending, federal research labs, and routine regulatory reviews, while border security, weather forecasting, veterans hospitals, and air travel operations continued [[source:https://www.apnews.com/hub/government-shutdown]], [[source:https://www.cdc.gov/media/releases/2019/s0103-federal-shutdown.html]].

Recency note: We scanned authoritative sources for updates within the last four hours. Because shutdown status can change rapidly around funding deadlines, this article relies on continuously maintained federal guidance (OPM, OMB, USA.gov) and the latest broadly cited analyses when no new agency bulletins were issued in that window. Follow the agency links in this story for the most current operating status.

What to expect in a shutdown-related furlough

When a funding lapse starts, agencies notify employees by email, text, and official memos. Non-excepted employees are told to cease work, complete shutdown tasks (like setting out-of-office messages and securing files), and await further notice. Excepted employees report as directed and accrue pay owed later.

• Pay: No pay is issued during the lapse. After funding resumes, federal employees receive back pay on the next practicable pay date, including for excepted hours worked [[source:https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/]].
• Leave: Paid leave is generally canceled during a shutdown furlough. You cannot substitute paid leave to work while furloughed. Excepted workers may be able to take unpaid leave with approval [[source:https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/]].
• Benefits: Health insurance (FEHB) continues, with the government paying its share; premiums are withheld from back pay later. Retirement and TSP contributions pause with no pay but resume afterward [[source:https://www.opm.gov/healthcare-insurance/healthcare/faq/fehb-shutdown/]].
• Outside employment: Some agencies permit outside work during furloughs, but ethics rules apply. Employees must seek prior approval when required [[source:https://www.oge.gov/web/oge.nsf/Resources/Ethics+Guidance+for+Government+Employees+during+a+Shutdown]].
• Unemployment insurance: Many furloughed federal workers can apply with their state unemployment office; if you later receive back pay, you may need to repay benefits [[source:https://oui.doleta.gov/unemploy/]].

What does it mean when the government shuts down?

A federal government shutdown is a partial cessation of operations due to a lapse in appropriations. Agencies suspend activities that are not "excepted" for life, health, safety, or property protection. Critical programs funded by mandatory spending (like Social Security and Medicare) continue paying benefits, though some customer service or new applications can be delayed [[source:https://www.usa.gov/government-shutdown]], [[source:https://crsreports.congress.gov/product/pdf/RL/RL34680]].

Who is furloughed and who keeps working?

• Excepted (required to work): Roles necessary for national security, public safety, or property protection (e.g., TSA, Border Patrol, air traffic control, military operations). They work without pay until funding returns [[source:https://www.whitehouse.gov/omb/information-for-agencies/agency-contingency-plans/]].
• Exempt: Employees paid from sources like multi-year or mandatory funding. Their work continues.
• Non-excepted: Temporarily furloughed and barred from performing work, including checking email, until recalled [[source:https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/]].

Impacts on everyday life

• Travel and safety: Airports remain open; TSA and air traffic control continue. Longer wait times are possible if staffing strains persist [[source:https://www.faa.gov/newsroom]].
• Taxes: The IRS continues some automated functions; phone support and audits may be limited depending on timing [[source:https://home.treasury.gov/news/press-releases]].
• Parks: Park access and services vary by site and state agreements; expect closures or limited services [[source:https://www.doi.gov/shutdown]].
• Loans and permits: Small business loans and some federal permits can be delayed [[source:https://www.sba.gov/]], [[source:https://www.epa.gov/]].

Pros and cons: filing for unemployment during a furlough

Check your state’s unemployment site for rules and to initiate a claim [[source:https://oui.doleta.gov/unemploy/]].

What to watch next

Shutdown risk hinges on Congress passing either full-year appropriations or a continuing resolution.

Key timeline and checkpoints

• September 30, 2025, 11:59 p.m. ET — Fiscal Year 2025 funding expires. Without new appropriations or a stopgap, a funding lapse begins.
• October 1–7, 2025 — Agencies implement contingency plans and issue furlough notices if a lapse occurs [[source:https://www.whitehouse.gov/omb/information-for-agencies/agency-contingency-plans/]].
• First pay period after funding resumes — Back pay processed for federal employees per OPM guidance [[source:https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/]].

Signs to monitor:

• House and Senate action on continuing resolutions and appropriations.
• OPM operating status memos and agency-specific furlough notices.
• OMB updates to agency contingency plans and exceptions.

Checklist: what to do if you are furloughed

1. Read your agency’s furlough notice and contingency plan. Follow shutdown procedures (out-of-office, timekeeping, securing systems) [[source:https://www.whitehouse.gov/omb/information-for-agencies/agency-contingency-plans/]].
2. Confirm your status (excepted, exempt, or non-excepted) with your supervisor and HR.
3. Review benefits: FEHB coverage continues; plan for premium withholdings from back pay [[source:https://www.opm.gov/healthcare-insurance/healthcare/faq/fehb-shutdown/]].
4. Consider applying for state unemployment, knowing repayment may be required when back pay arrives [[source:https://oui.doleta.gov/unemploy/]].
5. Check agency ethics rules before taking outside work [[source:https://www.oge.gov/web/oge.nsf/Resources/Ethics+Guidance+for+Government+Employees+during+a+Shutdown]].
6. Track all communications; keep personal contact info updated with HR for recall.

Answers to related questions

Is there a government shutdown? The most current status appears on OPM and OMB pages and may change quickly around funding deadlines. Check the latest agency operating status and contingency plans to confirm whether a lapse is in effect [[source:https://www.opm.gov/]], [[source:https://www.whitehouse.gov/omb/]].

Did the government shut down today? Look for time-stamped statements from congressional leaders, the White House, OPM, and your agency. USA.gov maintains a summary of what’s open and closed if a shutdown begins [[source:https://www.usa.gov/government-shutdown]].

What happens when the government shuts down? Non-excepted staff are furloughed without pay; excepted staff work without pay until funding returns. Essential services continue; many administrative services pause. Back pay is provided to federal employees once funding is restored [[source:https://crsreports.congress.gov/product/pdf/RL/RL34680]], [[source:https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/]].

How long do federal government shutdowns last? Past shutdowns have ranged from hours to 35 days (December 22, 2018–January 25, 2019). Duration depends on Congress and the President reaching a funding deal [[source:https://www.crs.gov/Reports/RL34680]], [[source:https://www.cbo.gov/publication/54937]].

Clarifying key terms

• Furlough: Temporary, unpaid leave.
• Government shutdown: Lapse in appropriations that pauses non-excepted operations.
• Excepted: Required to work during a lapse; paid retroactively.
• Exempt: Funded by non-lapsed appropriations.
• Continuing resolution (CR): Temporary funding measure to keep government operating.

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Key takeaways

• Furloughs are temporary and unpaid; shutdown furloughs occur during funding lapses.
• Excepted staff work; non-excepted staff stop working. Federal employees receive back pay when funding resumes.
• Essential services continue; many administrative services pause.
• You may claim state unemployment but may need to repay it after back pay.
• Monitor OPM and OMB for real-time status and your agency’s instructions.

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