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Fact check: Which government agencies are exempt from shutdowns and why?
Executive Summary
Federal agencies and positions exempt from a shutdown fall into two main buckets: operations funded outside annual appropriations (like the U.S. Postal Service and certain benefit programs) and "excepted" or essential personnel whose work protects life, safety, or national security and therefore continue to work during a lapse (but may face delayed pay). Reporting across agency guidance and news coverage shows these rules are applied unevenly, with agencies using different funding streams and internal criteria to determine who stays on duty [1] [2] [3].
1. Who is being cited as exempt — and why that matters for services
News summaries and agency guidance converge on a core claim: some agencies remain operational because their funding does not rely on annual appropriations, while others continue because their missions are legally essential. Benefit programs such as Social Security and Medicare, plus self-funded entities like the U.S. Postal Service, keep paying recipients because their statutory or multi-year funding streams are established outside the short-term appropriations process [4] [5]. The distinction matters for the public: programs tied to non-annual funding generally continue with little interruption, whereas services run by annual appropriations often face staffing reductions and service delays even when mission-critical work continues [1] [6].
2. Which agencies are repeatedly listed as staying open and the basis for each
Multiple summaries consistently list the same agencies as remaining active: U.S. Postal Service, Department of Veterans Affairs, Department of Health and Human Services, Department of Justice, and certain components of Homeland Security and Defense. The rationale varies: the Postal Service is self-funded through postage revenue; Social Security and Medicare have statutory payment authority; VA and HHS provide benefits and health services considered essential to life and public safety; Justice and homeland/security functions are excepted due to national security and law enforcement responsibilities [1]. Reporting indicates these continuations are legal and operational decisions rooted in funding law and excepted-employee rules rather than ad hoc choices [2].
3. Who works through a shutdown — 'excepted' versus furloughed workers
Coverage clarifies that "excepted" employees perform essential work during a lapse, including border security, law enforcement, air traffic control, and emergency medical functions, while many others are furloughed. Agencies must identify excepted positions using Treasury and OMB guidance; markers such as protecting life, safety, or property are central. Internal lists and correspondence revealed specific frontline roles — Border Patrol, CBP officers, Air and Marine Agents — as excepted and slated to receive pay even if appropriations lapse, although the timing of pay can vary until Congress acts [3] [2].
4. Funding structures that shield programs from lapse explain apparent paradoxes
Analysts note a recurring puzzle: some large agencies appear open while others shut down, which is explained by multiple funding streams and statutes that allow operations outside annual appropriations. For example, benefit payments for veterans and Social Security rely on entitlement or mandatory spending streams set by law, not discretionary appropriations, so they continue during a lapse; certain fees and receipts fund services at agencies like GSA and USPS, producing operational continuity for parts of those agencies [7] [4] [1]. This funding nuance explains why federal service continuity is a patchwork across departments during a shutdown [6].
5. How agencies implement shutdown guidance and why results vary
Government-wide guidance offers a framework for pause and exception, but implementation varies by agency. Agencies produce Lapse-in-Appropriations plans or special instructions that list excepted duties, orderly shutdown activities, and pay/leave rules, which leads to different retention levels and public impacts across departments [2]. News reporting and internal memos show some agencies furloughed employees who might otherwise be expected to be exempt because their funding mix or operational priorities differ, producing public confusion and variable service effects [7] [1].
6. Recent reporting and timelines that matter for current operations
Recent coverage through October 22, 2025, has updated lists of excepted positions and highlighted agency-specific decisions, with Reuters and other outlets publishing position lists and agencies releasing special instructions in the first half of October [3] [2] [4]. These updates matter because excepted lists and funding determinations can shift as agencies interpret guidance or find alternative funding, so the set of exempt roles and services is not static across the course of a shutdown [6] [1].
7. What this means for the public and where to watch next
The practical takeaway is straightforward: core life-safety, law enforcement, and entitlement benefit functions continue, but many administrative and discretionary services will pause or run with reduced staffing. The public should monitor agency guidance for service-specific updates and watch Congressional action, because restoring appropriations typically resolves pay and operational uncertainty. Reported exceptions and funding rationales show legal and administrative reasons for who stays on duty, and continued coverage through official agency releases will be the clearest source for day-to-day changes [4] [1] [5].