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Benzinga
Benzinga
Business
Shomik Sen Bhattacharjee

Shutdown Deal Nears, But When Do Federal Workers Get Their Money?

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As lawmakers edge closer to a deal to end the longest federal shutdown in U.S. history, hundreds of thousands of government workers who have gone weeks without pay are focused on a single question: When will the money actually show up?

Congress Inches Toward Deal To Reopen Government

The Senate is working to finalize a bipartisan funding package and House members were told late Sunday to be ready for votes on a reopening plan this week, pending Senate passage. But with no firm timeline, the financial strain on federal employees is mounting.

According to figures from the Bipartisan Policy Center, approximately 1.4 million workers missed their first full paychecks on October 24 after receiving only partial pay on October 10, forcing many to tap into their savings or turn to bank loans to cover rent, utilities and groceries.

Back Pay Law Becomes Central Shutdown Flashpoint

Once a funding bill passes and the government reopens, federal workers are entitled to back pay under the Government Employee Fair Treatment Act of 2019. The law covers both furloughed employees and those required to work without pay and directs agencies to issue retroactive pay "at the earliest date possible … regardless of scheduled pay dates," a practice followed after previous shutdowns.

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A White House memo has sought to narrow that guarantee, but unions and legal experts believe that the statute still requires full back pay.

Workers Turn To Loans, Food Banks, Unions

The Navy Federal Credit Union, which serves military personnel, has seen a rush for its no-interest shutdown loans. "More than 350,000 members enrolled for assistance — 18 times the enrollment in the 2018-19 shutdown," said Heather Long, the credit union's chief economist, in an email shared with CBS News, calling it one of many signs of how painful and uncertain this shutdown has become for families. Military families are facing similar anxiety over delayed pay.

Federal unions say members are increasingly desperate. The American Federation of Government Employees reports members turning to food banks and emergency assistance and is urging Congress to pass a "clean" funding bill that guarantees back pay for all workers.

The National Treasury Employees Union has stressed that "the law is clear that federal employees receive all back pay that was missed over the course of a shutdown" and has vowed to challenge any attempt to withhold it.

Bipartisan Policy Center figures show at least 670,000 federal employees are currently furloughed, while roughly 730,000 are working without pay. If the shutdown lasts through Dec. 1, an estimated 4.5 million paychecks totaling about $21 billion in wages will have been delayed.

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Photo Courtesy: Lightspring on Shutterstock.com

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