In this week’s episode of Fed Gov Today with Francis Rose, Jeff Neal, Principal at ChiefHRO and former Chief Human Capital Officer at the Department of Homeland Security, joins Francis to unpack one of the most complex and often overlooked aspects of a government shutdown — the people. Neal brings decades of federal human capital experience to the discussion, offering clarity, reassurance, and practical insights into what really happens to the federal workforce when funding stops and offices go dark.
Francis opens by asking Jeff about the shifting number of furloughed employees. The Congressional Budget Office estimates that roughly three-quarters of a million federal workers are currently on furlough, but that number fluctuates daily. Neal explains that the variation is natural — it’s driven by the structure of federal funding and the nature of government work.
Some employees, he says, continue working during a shutdown because their roles are “excepted,” meaning they protect life, safety, or property. Others can work because their salaries come from non-appropriated or revolving funds, such as the Defense Working Capital Fund or GSA building funds.
However, those funds don’t last forever. Many of them rely indirectly on appropriated dollars flowing from other agencies — the very funds frozen during a shutdown. When customers can’t pay for services, those revolving funds start to dry up, and employees once considered financially insulated from the shutdown eventually face furloughs too.
Conversely, some workers return during a shutdown if their absence begins to threaten life, property, or the operation of essential programs. As Neal puts it, “That number will go up and down as long as this lapse in appropriations lasts.”
One of the biggest concerns federal workers face during a shutdown is whether they’ll get paid once it’s over. Francis notes that recent guidance from the Office of Management and Budget seems to cast doubt on back pay. Neal, however, quickly clears the air.
He reminds listeners that Congress passed a law after the 2019 shutdown, guaranteeing that all federal employees — whether furloughed or working without pay — will receive full back pay once funding resumes. “When you’re looking at a difference of opinion between the law and some politician,” Neal says, “err on the side of believing the law.”
He adds that the Constitution prevents Congress from passing retroactive laws that take away pay or benefits already earned. That means even if future legislation changes the rule, it can’t be applied retroactively to the current shutdown. Neal estimates there’s a “99% likelihood” that federal employees will get paid, reassuring listeners not to worry about losing income permanently.
Drawing on his experience during the 2013 government shutdown, Neal emphasizes that clear, consistent communication is the most important factor in managing a workforce during a funding lapse. Employees need to know whether they’re “excepted” or “non-excepted,” what’s expected of them, and how quickly that information might change as circumstances evolve.
“You have to communicate rapidly and do it in an orderly way,” Neal says. Agencies must shut down operations systematically — ensuring employees know their status, have access to necessary resources, and understand that plans may shift daily.
Equally important, he stresses, is how agencies prepare to restart operations. “You can’t just flip a switch,” Neal cautions. “The entire government doesn’t just start operating again instantly.” Restarting federal operations requires careful sequencing, coordination across offices, and, above all, patience.
When the government finally reopens, Neal warns, employees will face a mountain of work waiting for them. Tasks don’t pause during a shutdown — they accumulate. Workers who were already overextended before the funding lapse will return to heavier workloads, tight deadlines, and anxious customers expecting immediate results.
“It’s going to get messy,” he admits. Teams will need to juggle priorities, balance competing demands, and reestablish coordination across departments and agencies. What one person considers urgent may not align with someone else’s priorities, so leaders must communicate clearly about what needs to happen first.
Neal points out that interagency collaboration — the informal web of partnerships that keeps government running — adds another layer of complexity. “A lot of the work that happens in government happens in what we refer to as the ‘interagency,’” he explains. “It’s the relationships between different agencies that intersect in a lot of different ways.”
That means agencies will need to work together, not in silos, to determine what comes first. Senior leadership plays a critical role here, Neal says, by setting priorities early, communicating them clearly, and providing employees with a roadmap for the first days and weeks after the shutdown ends.
For federal leaders, the shutdown poses a test of both communication and character. Neal advises that during the shutdown, leaders can only communicate with employees about essential shutdown-related issues — such as when to report back to work — but not about regular duties or upcoming projects. Once funding is restored, they should be ready with clear guidance, priorities, and encouragement to help staff ease back into operations.
“The goal,” Neal concludes, “is to get the government back on its feet in an orderly way.”