Federal Workers Face Layoffs, Unpaid Bills Amid Shutdown/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ As the government shutdown stretches into a third week, federal workers face growing financial hardship and job insecurity. The Trump administration has initiated layoffs, escalating tension between political leaders. Workers and unions decry the use of civil servants as political leverage in a deepening national crisis.
Government Shutdown Impact on Workers: Quick Looks
- Shutdown enters third week, leaving federal workers unpaid or furloughed
- Layoffs launched across agencies, with over 4,000 jobs already eliminated
- Trump administration warns of deeper cuts if shutdown continues
- Unions file lawsuits to stop ongoing federal firings
- Workers lack job security, with no back pay guarantee initially offered
- Shutdown triggered by ACA subsidy demands, blocked by GOP
- Federal employees turning to utility companies, food banks for help
- Social Security, CDC, NLRB deeply impacted, with critical services halted
- Union leaders urge resolution, say workers are used as “political pawns”
- TSA, firefighters, correction officers still working unpaid, morale crumbling
Deep Look: Shutdown Chaos Deepens for Federal Workers Facing Job Loss and Financial Crisis
WASHINGTON, D.C. — October 15, 2025
The U.S. government shutdown, now entering its third week, is rapidly transforming into a full-blown economic and emotional crisis for hundreds of thousands of federal workers. With agencies frozen, paychecks halted, and layoffs accelerating, workers across the nation are grappling with mounting bills and the fear that their jobs may be permanently gone.
The latest wave of uncertainty stems from the Trump administration’s decision to begin firing federal employees amid the funding impasse. The move, which has already affected over 4,000 workers from at least eight federal agencies, marks a sharp escalation in the administration’s strategy to force Democratic lawmakers to retreat from their demands.
“Luckily I was able to pay rent this month,” said Peter Farruggia, a furloughed worker at the Centers for Disease Control and Prevention (CDC). “But for sure I am going to have bills that are going to go unpaid this month.”
Farruggia, who also leads the local American Federation of Government Employees (AFGE) chapter, says morale is collapsing. His agency, already reeling from internal turmoil and a recent workplace shooting, is now dealing with a loss of 8,000 employees and complete operational paralysis.
Trump’s Budget Director Russ Vought confirmed the layoffs via social media, referring to the process as a “Reduction in Force.” Vice President JD Vance warned that the longer the shutdown continues, the more severe the cuts will be. The administration’s aggressive posture has drawn backlash from unions and civil rights advocates who argue the workforce is being weaponized as a political tool.
“The one thing this administration has taught me is that nothing is ever for certain, even if it’s codified into law,” said Jessica Sweet, a Social Security claims specialist in Albany, New York.
Sweet, a union steward with AFGE Local 3343, is concerned for her colleagues — many of whom are already operating in an understaffed, overworked environment. With no guarantee of back pay, she has begun reaching out to utilities to waive late fees.
The shutdown was triggered on October 1, when Democrats rejected a stopgap funding measure that failed to include Affordable Care Act (ACA) insurance subsidies. Trump and GOP leaders have refused to negotiate on the issue until the government is fully reopened.
Meanwhile, labor unions are fighting back, filing legal challenges to halt the layoffs and pressuring both Congress and the White House to negotiate in good faith.
“This isn’t about one party or the other. It’s about real people,” said Everett Kelley, national president of the American Federation of Government Employees.
He described the crisis as personal for thousands of federal workers, many of whom continue to show up for duty without compensation. TSA agents, correction officers, and firefighters are among the “essential” employees still working — despite being unpaid.
“No American should ever have to choose between serving their country and feeding their family,” Kelley added.
Randy Erwin, who heads the National Federation of Federal Employees, which represents over 100,000 federal workers, called the Trump administration’s approach “cruel and calculated,” saying the goal seems to be “to degrade and antagonize hardworking federal employees.”
Among the hardest-hit agencies is the National Labor Relations Board (NLRB), where nearly the entire workforce has been furloughed. Union leader Adam Pelletier said all investigations and elections have stopped. Even workers seeking approval for secondary jobs to make ends meet are stuck, as ethics offices are unstaffed.
The administration’s threat to withhold back pay, which Trump later walked back under pressure, broke from long-standing federal precedent. It sent shockwaves through the workforce and further eroded trust.
At a recent press event near the Capitol, union leaders, flanked by emotionally exhausted federal workers, urged lawmakers to “put people over politics.” The shutdown, they argued, is no longer about fiscal disagreements — it’s a human emergency.
Chris Bartley, representing the International Association of Fire Fighters, noted the long-term risks: “Morale and retention suffer. Public safety is compromised.”
With pressure mounting from both inside and outside the federal workforce, the future remains uncertain. The shutdown’s financial toll, psychological burden, and operational paralysis are compounding daily — and it’s unclear how long agencies, and their employees, can hold on.
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