OMB memo: Congress must fund retroactive pay in any funding bill

WASHINGTON — The White House warned Tuesday that federal employees would not be guaranteed retroactive pay if the government remains closed, signaling a break with years of practice and heightening pressure in a shutdown now in its seventh day. A memo circulated by the Office of Management and Budget said back pay would have to be provided by Congress as part of any funding bill rather than flowing automatically under existing law.

About 750,000 federal employees have been furloughed or placed on leave without pay, while thousands more deemed essential continue working without pay, according to agency contingency plans. The dispute over pay comes as lawmakers remain deadlocked over funding, with Democrats pressing for extensions of Affordable Care Act subsidies and other health care provisions and Republicans saying those issues can be addressed after a short-term funding measure is enacted.

The OMB memo argues that provisions of the Government Employee Fair Treatment Act of 2019, which directed that workers be paid after a lapse in funding ends, are not self-executing. The document says the 2019 law created an authorization to repay workers but did not itself appropriate funds,...