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Federal workers endure financial strain and fear layoffs as the government shutdown drags on

New York Amsterdam News

|

October 16, 2025

With every passing day of the government shutdown, hundreds of thousands of federal employees furloughed or working without pay face mounting financial strain. And now they are confronting new uncertainty with the Trump administration's promised layoffs.

- By FATIMA HUSSEIN, JOEY CAPPELLETTI, JESSE BEDAYN, and SAFIYAH RIDDLE

Federal workers endure financial strain and fear layoffs as the government shutdown drags on

A sign that reads "Closed due to federal government shutdown" is seen outside the National Gallery of Art in Washington, Oct. 6, 2025.

((AP Photo/Jose Luis Magana photo))

Little progress has been made to end the shutdown as it enters its third week, with Republicans and Democrats digging in and convinced their messaging is resonating with voters. The fate of the federal workers is among several pressure points that could eventually push the sides to agree to resolve the stalemate.

"Luckily, I was able to pay rent this month," said Peter Farruggia, a furloughed federal worker. "But for sure I am going to have bills that are going to go unpaid this month, and I really don't have many options."

The shutdown has a familiar feel for many federal employees who endured past stalemates including during President Donald Trump's first term - but this time, the stakes are higher. The Republican White House is leveraging federal workers' jobs to pressure Democrats to soften their demands.

The shutdown began on Oct. 1 after Democrats rejected a shortterm funding fix and demanded that the bill include an extension of federal subsidies for health insurance under the Affordable Care Act. Trump and other Republican leaders have said the government must reopen before they will negotiate with Democrats on the health subsidies.

Farruggia is the head of the American Federation of Government Employees local representing employees at the Centers for Disease Control and Prevention, an agency that faced a wave of layoffs over the weekend. Like 8,000 other CDC employees who have been furloughed from the agency, he was already living paycheck to paycheck, and the partial pay that arrived Friday was his last until the government comes back online.

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