Government Shutdown Worsens as 658,000 Civilian Employees Miss Paychecks

As the government shutdown continues, nearly 658,000 civilian employees at the Departments of Defense, Health and Human Services, and Veterans Affairs missed their first full paycheck on Friday, marking another grim milestone. In a year of mass layoffs, the shutdown's furloughs and missed pay are a low point for beleaguered federal workers. The Executive Office of the President and a few other agencies' civilian employees also missed Friday paychecks, according to a report by the Bipartisan Policy Institute. The situation is expected to worsen, with about 686,000 civilian employees at most other agencies missing an entire paycheck on Tuesday and 37,000 employees at the Departments of State and Education missing entire checks on Thursday.

Key Takeaways:

• 658,000 civilian employees at the Departments of Defense, Health and Human Services, and Veterans Affairs missed their first full paycheck on Friday.
• The Executive Office of the President and a few other agencies' civilian employees also missed Friday paychecks.
• About 686,000 civilian employees at most other agencies will miss an entire paycheck on Tuesday, and 37,000 employees at the Departments of State and Education will miss entire checks on Thursday.
• Agency contingency plans as of Friday show about 670,000 workers are currently furloughed, and an additional 730,000 are working without pay.
• The White House has threatened not to provide furloughed workers with backpay, but the Internal Revenue Service has guaranteed backpay.
• The Trump administration reallocated $8 billion to cover active duty military's Oct. 15 pay date, and the Defense Department accepted a $130 million anonymous donation to pay service members during the shutdown.
• Otherwise, Oct. 31 could be the first time in history that members of all military branches miss a paycheck due to a government shutdown.
• 20,000 unemployment insurance claims have been filed in the three weeks since the shutdown began, according to a Friday report from the Century Foundation.
• Several banks, including Chase, have offered assistance to federal employee customers like zero-interest loans and refunded monthly service and overdraft fees to customers with direct deposits tied to federal accounts.

Statistics:

• 658,000 civilian employees missed their first full paycheck on Friday.
• 686,000 civilian employees will miss an entire paycheck on Tuesday.
• 37,000 employees at the Departments of State and Education will miss entire checks on Thursday.
• 670,000 workers are currently furloughed, and an additional 730,000 are working without pay.
• The Trump administration reallocated $8 billion to cover active duty military's Oct. 15 pay date.
• The Defense Department accepted a $130 million anonymous donation to pay service members during the shutdown.
• 20,000 unemployment insurance claims have been filed in the three weeks since the shutdown began.
• Over 1.8 million paychecks will be withheld from civilian employees of federal agencies if the shutdown lasts through the end of October.
• Roughly 4.5 million paychecks will be withheld from civilian employees of federal agencies if the shutdown lasts through Dec. 1.

Sources:

• Axios: "Government shutdown: Furloughed workers may not get paid after all" (October 7, 2025)
• Axios: "Trump administration reallocations billions to cover military pay" (October 18, 2025)
• Axios: "Government shutdown could be the first time all military branches miss a paycheck" (October 23, 2025)
• Bipartisan Policy Institute: "Who Is Missing Paychecks in the 2025 Shutdown, When and Where?" (No publication date)
• Century Foundation: "Unemployment Insurance Claims Soar Amid Government Shutdown" (October 25, 2025)