Imagine the chaos of a government shutdown: thousands of dedicated federal workers facing the brink of financial ruin, their paychecks hanging in the balance, while political battles rage on. It's a heart-wrenching scenario that hits home for millions of Americans relying on these essential services. But here's where it gets controversial—amid these dire threats of mass layoffs, one agency is quietly reversing course and welcoming employees back to their desks. Stick around, because this twist reveals a lot about how shutdowns really play out behind the scenes, and it's the part most people miss in the headlines.
The Trump administration is ramping up its warnings, insisting that if Congress doesn't swiftly resolve the ongoing government shutdown, which kicked off on October 1, thousands of federal employees could be out of a job. President Donald Trump himself declared to reporters on Sunday evening that layoffs were 'taking place right now.' Yet, just a day later, White House Press Secretary Karoline Leavitt clarified that he was actually pointing to the hundreds of thousands of workers already furloughed—meaning they're temporarily out of work without pay—due to the funding freeze. 'Millions of American federal workers are under enormous financial stress as a result, wondering how they will pay their bills and take care of their families,' Leavitt explained. She added that if Democrats don't vote to reopen the government that night, these employees won't get their next full paycheck.
This isn't the first time such warnings have surfaced. Last week, Leavitt hinted that layoffs 'in the thousands' were just around the corner, and Office of Management and Budget Director Russ Vought informed Republican lawmakers that the cuts would unfold in the days ahead. By Monday, Leavitt reiterated that the OMB was still collaborating with various agencies to identify who might have to go if the shutdown drags on, and these plans would move forward without a congressional agreement. That same afternoon, the Senate struck out for the fifth time, rejecting stopgap funding proposals from both Democrats—check out Senate Bill 2882—and Republicans, like House Bill 5371. 'We don’t want to see people laid off,' Leavitt said, 'But unfortunately, if this shutdown continues, layoffs are going to be an unfortunate consequence of that.'
Not everyone is taking this lying down. Unions representing government employees have turned to the courts, petitioning a federal judge to prevent the Trump administration from executing any widespread firings during the shutdown. This legal push underscores the high stakes, as workers fear immediate job losses that could disrupt their lives even further.
But here's the intriguing flip side: while threats of layoffs loom large, at least one agency is bucking the trend by rehiring staff. The General Services Administration (GSA) announced on Monday that it was bringing hundreds of previously laid-off employees back to work to handle its nationwide real estate holdings. This move came after the agency withdrew reduction-in-force notices—essentially, layoff warnings—they'd issued months earlier. Several GSA staff members shared with Federal News Network that the shutdown hadn't derailed their plans to reinstate these workers, and many would keep working and getting paid on schedule throughout the funding gap.
Diving deeper, Federal News Network reported last month that GSA intended to reverse layoffs for roughly 400 employees in its Public Buildings Service (PBS). An insider from the industry revealed that about 75% of those offered reinstatement chose to return. When asked for more details, a GSA spokesperson directed inquiries to the OMB.
GSA's updated emergency protocols, outlined in their directives on operations without appropriations, allow for exempting over 3,000 PBS employees during a shutdown—representing the majority of the PBS team. These employees form the bulk of the staff GSA plans to keep active using leftover funds from previous years. In fact, per the latest plan, around 64% of all GSA workers are exempt from the current shutdown, thanks to carryover and non-appropriated funds. With a total workforce exceeding 10,700, GSA relies heavily on these exemptions to maintain operations.
PBS, for instance, can keep running smoothly, including paying salaries and covering costs—at least initially—through 'no-year' funds that roll over from one fiscal year to the next. As GSA's contingency plan puts it, 'Because GSA is the government’s property manager, GSA personnel will be responsible for maintaining, protecting, and preserving that property to a greater extent than many other agencies that are not responsible for property and asset management governmentwide.' Exempted GSA staff will focus on safeguarding lives and federal assets, plus supporting other agencies in their essential tasks.
To help beginners grasp this, think of a shutdown like hitting pause on government funding: agencies can't spend new money, but some critical functions continue if they're funded by reserves or deemed vital for safety. PBS, which had over 5,600 employees as of September 2024, has seen notable reductions under the Trump administration, making these exemptions even more crucial.
During such a pause, federal buildings typically stay open for authorized personnel but might close to the public. Construction on federally owned sites, if paid with carryover funds, can proceed. GSA anticipates handling next month's rent for leased spaces without issue, though new leases would generally be off-limits unless already in progress before the shutdown. On the other hand, efforts to sell or dispose of underused federal properties would halt. Under the current administration, GSA aims to shed about half its real estate portfolio—a goal that could face delays.
The plan emphasizes GSA's unique role: 'GSA’s role as an aggregator of large numbers of government assets and a supplier of critical tools, equipment, and supplies to other federal agencies requires that GSA retain adequate staffing under a lapse in appropriations in order to protect federal property under GSA’s custody and control and to continue to provide critical support to other federal agencies’ exempt and excepted activities necessary for the protection of life and Federal property.'
This ties into the Antideficiency Act, a law that bars agencies from spending funds during funding lapses. However, many federal workers are exempt or excepted if their duties involve protecting human life or property. The Trump administration has used this rationale to justify sending the National Guard to cities like Chicago and Portland to secure federal buildings. 'The president wants to ensure that our federal buildings and our assets are protected, and that’s exactly what he’s trying to do,' Leavitt stated. And this is the part most people miss—does deploying troops for property protection cross into overreach, or is it a necessary safeguard? It's a point that sparks heated debates about government power versus public safety.
Former PBS Commissioner Norman Dong offered insights in a January 2019 white paper, noting that a short shutdown might only mildly affect federal leasing, but a prolonged one could jeopardize lease payments for office spaces across the government. In such cases, Dong suggested the feds might need to take 'unprecedented steps' to cover rents and avoid major disruptions. 'Most of the uncertainty surrounding this shutdown’s effect on GSA’s leased portfolio revolves around how long GSA goes without funding,' he wrote.
GSA's plans warn that the number of exempt employees 'will decrease as carryover funds are exhausted,' and some might shift to 'excepted' status—still working but without timely pay until funding resumes. 'Additionally, depending on the length of a shutdown and GSA’s availability of funds, other activities may need to cease as well,' the document adds.
Overseeing more than 8,800 federal buildings spanning 359 million square feet, GSA's operations are vast and vital. But here's where it gets controversial: why is GSA selectively bringing back workers while other agencies face layoffs? Is this favoritism, or a smart prioritization of essential services? Critics might argue it's inconsistent with the administration's tough stance, while supporters could see it as pragmatic. What do you think—should all agencies follow GSA's lead, or is this just another layer of political maneuvering? Share your thoughts in the comments; do you agree with the exemptions, or disagree with how shutdowns are handled? Let's discuss!
