Federal employees brace for possible government shutdown as talks stall

Federal employees across the United States are growing anxious as the threat of a government shutdown intensifies, with Oct. 1—the start of the new fiscal year—approaching while Congress remains deadlocked over funding. The impasse has left workers worried about furloughs, potential pay interruptions and the loss of programs they rely on.

Democrats have pressed for extensions of health insurance subsidies to keep costs down, for rolling back Medicaid cuts tied to an earlier administration’s policy package, and for restoration of funding for public media that was curtailed in a prior budget measure. The White House canceled talks with Democratic leaders, saying the demands were unserious and unproductive. In a parallel move, a White House memo urged federal agencies to use the moment to prepare for fast-tracked mass layoffs if a deal cannot be reached.

As the deadline nears, federal employees nationwide describe a climate of fear and uncertainty about which programs will survive a shutdown and whether they themselves will be among those furloughed or required to work without pay. An unidentified worker told CNN they are absolutely terrified about reliving past shutdowns, noting a recent round of job changes amid budget cuts and expressing concern about preparing for an indistinct future. The accounts underscore a sense of disorientation among a workforce that tends to be middle-class and family-oriented.

Alex Berman, an IRS employee and a leader of the National Treasury Employees Union, described an ongoing state of fearful uncertainty as the threat of shutdown looms. He warned that the situation could be used as a pretext to declare employees no longer in their positions, a development he said would undermine how the system is supposed to work. Federal workers are largely middle class, he noted, and many worry about how disruptions could affect their families this year.

An FAA employee with a growing family said the possibility of a shutdown has already prompted cutbacks in nonessential spending, a precaution taken this summer in anticipation of possible disruption.

A correctional officer at the high-security US Penitentiary Canaan in Pennsylvania said he may need a personal loan to cover car payments and rent if the shutdown lasts, and he and his wife will try to keep their two daughters’ afterschool activities going as much as possible. The officer emphasized that the strain would be felt differently at the personal level depending on the duration of any disruption.

Bonita Williams, a contractor at State Department headquarters, said that although she kept her job during the last shutdown, it was a struggle. She recalled that her children also work for the federal government and warned that if they were furloughed, she would have to help them financially. Williams described living paycheck to paycheck and said she could not fully prepare for a prolonged stoppage.

Employees at the Department of Education said they felt at a loss to understand or predict what the coming days would bring, adding that they were kept on their toes as the stalemate persisted.

At the AFL-CIO, President Liz Shuler said federal workers have already suffered greatly this year and urged protections for the workforce amid the political fights surrounding funding and policy changes.

President Donald Trump, meanwhile, claimed that a shutdown is exactly what Democrats want, arguing that they have not changed their approach. In response, congressional leaders and aides framed the standoff as a stark choice between funding the government and advancing policy priorities, with Republicans pressing for a clean funding measure and Democrats tying calling for protections and policy reversals to any bill.

Senate Republicans, including Senate Majority Leader John Thune, characterized Democratic healthcare demands as unfounded and unserious, while House Minority Leader Hakeem Jeffries asserted that Democrats would not be intimidated by threats and would stand firm on their priorities.

If a shutdown occurs, essential operations such as Social Security payments, military duties, immigration enforcement and air traffic control would continue, but many other government functions would be delayed or disrupted. Analysts warn that a protracted shutdown could slow the economy, unsettled markets and erode public trust in government, potentially lasting well beyond the initial outage if lawmakers cannot reach a longer-term funding agreement.

The shutdown threat hearkens back to the 2018 episode, when a record 35-day closure left hundreds of thousands of federal workers without pay for weeks, forcing communities to rely on family, friends and local resources to weather the disruption.