The longest government shutdown in U.S. history may have ended, but its impact on federal employees lingers.
For 43 days, hundreds of thousands of workers were furloughed, while others were required to continue reporting to duty without pay. Although operations have resumed and paychecks have restarted, many federal employees are still grappling with significant financial setbacks and emotional strain.
That reality is clear to Dora Kingsley Vertenten, a professor in the Master of Public Administration (MPA) online program at the USC Price School of Public Policy. She has seen the repercussions firsthand — both among colleagues and within her own family. Her daughter, a nurse at a Department of Defense (DOD) facility, worked full time without compensation, while her son, also with the DOD in Washington, D.C., was furloughed.
“For both of them, it was the emotional toll that hit hardest,” Vertenten explained. “Not knowing when layoffs might occur, when the furlough would end and when they’d return to work made it impossible to plan. And in my daughter’s case, she was working even harder to cover for colleagues who were out, despite not being paid for weeks on end. There are mental ramifications.”
Now that federal agencies are “back to normal,” many employees are asking what steps they can take to regain stability, rebuild momentum and prepare for the future — including through further education. Below is guidance on how to move forward.
Focus on Financial Recovery
The first priority for most workers is addressing financial fallout. While some employees will receive backpay for time worked, others will not recover wages lost during furlough.
Take time to reassess your current financial position and develop a realistic short-term plan. If you’re receiving backpay, determine whether this is the right moment to resolve bills or loans that accumulated during the shutdown. If you are facing lost income, consider temporary strategies such as reducing discretionary spending, negotiating revised payment timelines or exploring supplemental work.
As Vertenten notes, even backpay doesn’t fully compensate for the financial disruption.
“That’s the problem with a furlough,” she said. “You may receive the same amount of money eventually, but if you relied on credit cards or borrowed funds, now you’re dealing with accrued interest or repayment obligations. It’s a tough spot financially to be in.”
When creating your recovery plan, prioritize essential expenses — housing, utilities, insurance — before discretionary spending. If you dipped into your emergency savings, begin replenishing it as soon as possible. The shutdown has underscored how critical that safety net is.
“Anything you can do to squirrel money away is important in these uncertain times,” Vertenten added. “Traditionally, having six months of income saved can help you weather a furlough or layoff.”
Reintegrating Back Into Work
For many, the disruption extended far beyond finances.
“So much of the recovery is emotional,” Vertenten told USC Online. “It’s not just about money coming in; it’s about self-worth, coping with uncertainty and reestablishing routines.”
Returning to full-time work after weeks away can feel overwhelming. Workloads may have grown in your absence, operational priorities may have shifted and your schedule may feel abruptly packed again. Understand that it will be an adjustment heading back into the routine of your job.
Clear communication is key to navigating the transition. Align with your team on immediate priorities, adjust project timelines and clarify new objectives that surfaced during the shutdown. Don’t hesitate to lean on colleagues — everyone experienced some form of disruption, whether through furlough or unpaid labor.
Evaluate Your Long-Term Career Goals
The shutdown has prompted many federal employees to reassess their long-term career paths. The temporary loss of income — coupled with strict limitations on outside employment — has raised difficult questions.
“The federal government limits your ability to earn income elsewhere,” Vertenten explained. “If you wanted to drive for Uber or deliver for DoorDash, you could only do that for a small percentage of your time. So your ability to replace the income in real time was constrained.”
Plus, she noted that no special loans or recovery programs were offered to help affected employees.
“It’s not like a job where you’re laid off and receive severance,” she said.
Of course, federal government roles remain highly desirable and offer exceptional benefits, and the commitment to public service continues to inspire many professionals. Still, now is an important moment to reflect on your career trajectory. Consider what skills you may need to advance, whether additional training or education would strengthen your position, or whether expanding your competencies — especially in areas like AI, for example — could help you navigate future uncertainties.
Stabilize Your Career With Education
For those feeling vulnerable or looking to strengthen their professional footing, returning to school can be a powerful step forward. A master’s degree or graduate certificate can deepen your expertise, enhance your qualifications for promotions or prepare you for a strategic career pivot.
“Most people tell me they want to upskill for AI and uncertain job markets. It makes sense — more education gives you greater flexibility,” Vertenten said.
USC has a range of online graduate programs designed to support working professionals, including the MPA, a strong fit for federal employees. Many federal agencies also offer education benefits (outside of shutdown periods), helping reduce the financial burden of graduate study.
Protect Yourself Against Future Shutdowns
Shutdowns are an unfortunate but recurring reality. The most effective way to prepare, Vertenten emphasized, is by building adequate savings, whether through automatic transfers or budget adjustments that free up additional funds.
Beyond financial preparedness, continual learning is essential. Expanding your skill set — through degrees, certificates, seminars, networking events or online coursework — increases your resilience during job market shifts, technological change or future furloughs.
Whether navigating a shutdown, adapting to AI-driven transformation or recovering from a layoff, ongoing education can help you feel more secure and equipped to tackle any job changes.
Learn more about the Master of Public Administration (MPA) online at USC Price today.