Keep Factually independent
Whether you agree or disagree with our analysis, these conversations matter for democracy. We don't take money from political groups - even a $5 donation helps us keep it that way.
Are USPS contractors and rural carriers paid during a federal shutdown?
Executive Summary
The U.S. Postal Service’s career employees and rural letter carriers continue to work and receive pay during a federal government shutdown because the USPS operates as an independent, self-funded agency not reliant on annual congressional appropriations. Recent union and news materials from September–October 2025 report that delivery operations and paychecks for postal employees proceed uninterrupted [1] [2]. By contrast, payment to private contractors that provide goods or services to the Postal Service depends on the specific contract funding, contract clauses, and whether work is directed to continue by a contracting officer; fully funded or exempt contracts can keep paying contractors even in a shutdown [3] [4].
1. Why postal employees keep getting paid and carriers keep delivering — the funding reality that matters
The Postal Service’s core funding model explains why letter carriers and rural carriers continue receiving pay and performing routes during shutdowns: USPS is financed primarily through postage sales and service revenue rather than annual appropriations, so operational payroll remains covered when discretionary federal agencies pause [5] [1]. Union statements and recent reporting in late 2025 reiterate that this structural independence means mail delivery is an “excepted” or continuing service and that mail handlers and rural carriers will report to work and be paid as normal [6] [7]. This is not an ad hoc decision made during each lapse; it is rooted in statutory and budgetary differences between the Postal Service and agencies that depend on annual appropriations, which is why USPS employees are treated differently in shutdown scenarios [2].
2. Contractors are not automatically protected — contracts, funds, and contracting officer directions matter
Unlike career postal employees, USPS contractors’ payability during a shutdown is contract-specific: if a contract is fully funded with no-year or multiyear funds or otherwise exempt from appropriations constraints, performance and payment typically continue; new obligations or modifications that require annual appropriations may be restricted [3]. Federal guidance for contractors during shutdowns emphasizes that contracting officers control whether work must stop and that contractors should continue performance until officially directed otherwise; contractors may be eligible to recover certain shutdown-related costs under Federal Acquisition Regulation clauses [3]. Past Q&A and union materials warn contractors they face more uncertainty than employees because funding status and procurement rules determine exposure, not the Postal Service’s operational posture [4].
3. How unions and industry outlets frame the risk — similar conclusions with different emphases
Union communications from 2025 emphasize that postal employees are safe from immediate pay disruptions, framing the issue as reassurance for members and customers; these outlets focus on continuity of delivery and payroll for career staff [1] [6]. Industry and contractor-focused guidance stresses nuance and procedural controls, warning that contractors must monitor contract funding streams and await contracting officer instructions before assuming uninterrupted payments [3]. Both perspectives are factual but reveal differing priorities: unions emphasize operational continuity for employees, while procurement guidance highlights legal and contractual constraints that create potential risk for private vendors [7] [3].
4. What contractors and rural carriers should do now — practical next steps grounded in procurement law
Contractors should immediately review their contract funding type, applicable FAR clauses, and any no-year or multiyear appropriations; they should maintain documentation of standby or restart costs and engage their contracting officer for explicit guidance, because contract performance and cost recovery hinge on contracting officer directives [3]. Rural carriers who are direct USPS employees should expect to be paid and to work, but independent contractors performing route-related services must confirm their contract status; union guidance and Postal Service statements provide reassurance for employees, while procurement FAQs and legal analyses provide the operational checklist for vendors [1] [3] [4].
5. Big-picture implications and what to watch as a shutdown unfolds
The essential takeaway is that the Postal Service’s funding structure protects employee pay and service continuity, but it does not automatically shield all third-party vendors from disruption; contractors face conditional protections tied to contract funding and procurement rules [5] [3]. Stakeholders should watch contracting officer notices, agency procurement guidance, and any targeted Congressional action affecting postal revenue sources; union releases and industry reporting from September–October 2025 are useful for near-term expectations, while contract documents and FAR guidance determine the legal outcome for vendors [7] [3] [4].