Government Shutdown 2026: What Federal Employees Need to Know

Last Updated: January 9, 2026 Reading Time: 8 min

The January 30, 2026 funding deadline is three weeks away. Congress must pass full-year appropriations or another extension to avoid a partial government shutdown.

If you lived through the 43-day shutdown last fall, you know how this feels. Here's what you need to know this time around.

Key Takeaways

• January 30, 2026 is the deadline. Current funding expires at midnight.
• Back pay is guaranteed by the Government Employee Fair Treatment Act of 2019.
• Contractors are NOT covered. They have no legal right to back pay.
• Benefits continue. FEHB, TSP, and FEGLI keep running during a shutdown.
• Start preparing now. Build your emergency fund and know your furlough status.

The 2025 Shutdown Was the Longest Ever

The October-November 2025 shutdown lasted 43 days, breaking the previous record of 35 days from 2018-2019.

Impact	Number
Duration	43 days
Employees furloughed	670,000
Excepted employees (worked without pay)	730,000
Economic cost	$11 billion (CBO)
SNAP recipients affected	42 million

Most employees received back pay within 7 days of the shutdown ending.

What Happens to Your Pay

The most important thing: back pay is guaranteed by law.

The Government Employee Fair Treatment Act of 2019 ensures all federal employees receive full retroactive pay after any shutdown.

Your Status	During Shutdown	After Shutdown
Furloughed	No pay, cannot work	Full back pay
Excepted	Must work, no pay	Full back pay + overtime
Exempt	Normal pay continues	No change
Contractors	No pay	No guarantee

Contractors Are Not Covered

Over 4 million workers are employed under federal contracts. They have no legal right to back pay.

If you're a contractor, build a larger emergency fund. Aim for 2-3 months of expenses.

What Happens to Your Benefits

FEHB (Health Insurance)

Your health coverage continues uninterrupted.

What Happens	Details
Coverage	Continues normally
Premiums	Accumulate as debt
After shutdown	Withheld from back pay
Duration	Up to 365 days in nonpay status

OPM confirmed all FEHB plans have sufficient funds to pay claims during a shutdown.

TSP (Thrift Savings Plan)

TSP keeps running because it's not funded by annual appropriations.

What Happens	Details
TSP.gov access	Continues normally
Contributions	Reduced proportionally
Agency match	Reduced proportionally
TSP loans	Stay in good standing
Withdrawals	Still available

Pro tip: If you need emergency funds, a TSP loan is better than a withdrawal. Withdrawals trigger a 10% penalty if you're under 59.5.

FEGLI (Life Insurance)

Coverage continues. Premiums accumulate and are deducted from back pay.

What Happens to Your Leave

Leave Type	What Happens
Scheduled leave	Automatically canceled
Use-or-lose	Eligible for restoration if properly scheduled
Leave accrual	Continues retroactively

Important Deadline: January 10, 2026

If you had use-or-lose leave restored from the 2025 shutdown, you must use it by January 10, 2026. After that, it's permanently forfeited.

How to Prepare Now

Financial Checklist

1. Calculate your emergency fund target. Use our GS Pay Calculator to know your exact biweekly take-home. Aim for 1-3 months of expenses.

2. Map your monthly cash flow. List fixed expenses: rent, car, utilities, insurance. Identify what you can cut.

3. Contact lenders proactively. Banks often offer payment deferrals during shutdowns. Navy Federal offers 0% APR shutdown loans.

4. Avoid TSP withdrawals. The 10% penalty adds up. Use emergency savings first.

Administrative Checklist

1. Know your furlough status. Ask your supervisor: excepted, exempt, or non-excepted?

2. Schedule use-or-lose leave properly. It must be in writing before the third biweekly pay period before year end.

3. File for unemployment if furloughed. Furloughed feds qualify for UCFE through your state's unemployment office.

Calculate Your Take-Home Pay

Use our free GS Pay Calculator to see your exact biweekly pay. This helps you plan your emergency fund and know exactly how much income you'd miss during a shutdown.

Calculate Your Pay →

Resources for Federal Employees

Resource	What They Offer
FEEA Shutdown Grants	$150 micro-grants for essentials
OPM Furlough Guidance	Official guidance document
Shutdown Assistance Map	Searchable map of offers for feds

Frequently Asked Questions

Will federal employees get back pay after a shutdown?

Yes. The Government Employee Fair Treatment Act of 2019 guarantees back pay for all federal employees. Both furloughed workers and excepted employees receive full retroactive pay once the shutdown ends.

Do federal contractors get back pay after a shutdown?

No. Unlike federal employees, contractors have no legal guarantee of back pay. Proposed legislation would change this, but it hasn't passed. Contractors should maintain larger emergency funds.

What happens to my health insurance during a shutdown?

FEHB coverage continues uninterrupted. Your premiums are not deducted during the shutdown but accumulate as a debt. Once the shutdown ends, unpaid premiums are withheld from your back pay.

Can I use annual leave during a shutdown?

No. Furloughed employees cannot use any paid leave during a lapse in appropriations. All scheduled leave is automatically canceled. If you had use-or-lose leave properly scheduled, it's eligible for restoration.

When is the next government shutdown deadline?

January 30, 2026. If Congress doesn't pass full-year appropriations or another extension, a partial shutdown could begin January 31.

The Bottom Line

You will get paid eventually. The question is whether you can bridge weeks without income.

Start preparing now. Build your emergency fund. Know your furlough status. And use our GS Pay Calculator to plan exactly how much you need.

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Related Resources

• GS Pay Calculator: Calculate your exact biweekly take-home pay
• Federal Leave Optimizer: Plan your use-or-lose leave
• Severance Calculator: Compare options if facing RIF

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Sources: OPM Furlough Guidance, Congress.gov GEFTA, TSP.gov, Bipartisan Policy Center