The ongoing government shutdown, which began on September 30, 2023, has left approximately 23,000 federal employees in Oregon without pay. Many of these workers, including critical personnel such as airport screeners and air traffic controllers, are still required to perform their duties during this challenging period.
As the shutdown approaches its fourth week, an analysis by the Oregon Journalism Project indicates that back pay owed to these federal workers could exceed $140 million due to provisions in the Government Employee Fair Treatment Act. While federal employment spans all 36 counties in Oregon, the impact of the shutdown is uneven, with rural areas feeling the strain more acutely.
Sherman County Faces Severe Economic Impact
Sherman County has emerged as the hardest-hit area in Oregon, where federal employees constitute 14% of the workforce, accounting for over a quarter of the county’s total annual wages. Many residents here work for the U.S. Army Corps of Engineers, a division of the Department of Defense. The local economy, heavily reliant on these federal jobs, faces significant challenges as workers go unpaid.
Nicole Ramos, regional economist for the Oregon Employment Department in the Columbia Gorge, notes the complexities of assessing the shutdown’s full impact. “Not all federal government workers are furloughed, and some are not funded by appropriations,” she explains. “Not every federal worker is going unpaid at the moment.” For instance, the U.S. Postal Service, categorized as an independent agency, continues to operate and compensate its employees.
Unemployment Claims and Future Risks
Despite the ongoing crisis, some unpaid federal employees in Oregon can apply for unemployment benefits. In the first two weeks of the shutdown, 39 new unemployment claims were filed by federal employees, according to state data. However, those who receive back pay may be required to repay these benefits once the government reopens.
The current shutdown is now the second longest in U.S. history. If it persists through the end of October, it could lead to active military personnel missing paychecks and disruptions in Supplemental Nutrition Assistance Program (SNAP) benefits, commonly known as food stamps.
In Washington, House Republicans have attempted to pass a temporary funding bill to resolve the impasse. Despite holding the majority in the Senate with 53 seats, they require 60 votes to advance the legislation. Democrats are withholding support unless the bill includes extensions for expiring health insurance tax credits. The situation has been exacerbated by rising health insurance costs for individuals utilizing the Affordable Care Act marketplace, as reported by KFF.
The standoff continues to have significant ramifications for Oregon’s economy, particularly in rural counties where the federal workforce is a critical component of local livelihoods.
“This situation is not just about numbers; it affects real lives and families in our communities,” Ramos added.
This story was produced by the Oregon Journalism Project, a nonprofit investigative newsroom dedicated to thorough reporting and analysis in the state of Oregon.