Washington, D.C. – October 16, 2025 – In a bold assertion of executive authority, U.S. President Donald J. Trump signed a presidential memorandum on Wednesday directing Defense Secretary Pete Hegseth to repurpose unspent federal funds to ensure that active-duty military personnel receive their paychecks despite the federal government shutdown entering its 15th day. The move, which sidesteps congressional approval, has ignited fierce partisan debate, with Democrats decrying it as an unconstitutional power grab and Republicans hailing it as a vital safeguard for national security.
The memorandum, issued just hours before the October 15 mid-month payroll deadline, instructs Hegseth to draw from any funds appropriated by Congress that remain available for expenditure in fiscal year 2026. Specifically, it authorizes the use of resources "provided for purposes that have a reasonable, logical relationship to the pay and allowances of military personnel, consistent with applicable law." Trump framed the action as an urgent response to what he called "a serious and unacceptable threat to military readiness and the ability of our Armed Forces to protect and defend our Nation." In a statement released by the White House, the president emphasized that the shutdown's disruptions could not be allowed to undermine the troops who "stand ready every day to defend our freedoms."
This intervention comes as the shutdown, triggered by a failure to pass a continuing resolution (CR) before the September 30 fiscal year-end, has paralyzed nonessential federal operations. Over 700,000 federal civilian employees have been furloughed without pay, while another 700,000 deemed essential continue working in limbo, awaiting back pay once funding resumes. For the military, the stakes are particularly acute: approximately 1.3 million active-duty service members, along with 750,000 National Guard and Reserve personnel, have been performing their duties uninterrupted. Wednesday marked the first time in U.S. history that all branches of the military risked missing a paycheck due to a shutdown, a milestone that amplified the political pressure on lawmakers.
The Pentagon, under Hegseth's leadership, identified roughly $8 billion in unobligated funds from fiscal year 2025—primarily from research, development, testing, and evaluation (RDT&E) accounts—to cover the October 15 disbursements. "These funds, while earmarked for innovation in areas like AI and counter-drone systems, bear a direct logical tie to enhancing troop welfare and operational effectiveness," a senior Defense Department official told reporters on condition of anonymity. The repurpose allows for the immediate issuance of salaries and allowances, averting what could have been widespread financial hardship for service families. However, questions linger about the sustainability of this approach; the end-of-month payroll on October 31 could face similar shortfalls if Congress does not act, potentially exhausting the redirected reserves.
Pete Hegseth, the 45-year-old former Fox News host and Army National Guard veteran who was narrowly confirmed as defense secretary in January 2025, has been a vocal proponent of the memorandum. Sworn in after a contentious 51-50 Senate vote—broken by Vice President J.D. Vance's tiebreaker—Hegseth overcame allegations of personal misconduct and inexperience to assume the role. His tenure has been marked by aggressive reforms, including directives to overhaul Army priorities toward homeland defense and deterring China in the Indo-Pacific. In a repost on Truth Social echoing Trump's announcement, Hegseth wrote, "President Trump delivers for the troops. We will not let bureaucratic gridlock weaken our warriors." Hegseth's background as a decorated combat veteran from deployments in Iraq, Guantanamo Bay, and Afghanistan has lent credence to his advocacy, though critics question whether his media persona equips him for the fiscal intricacies of Pentagon budgeting.
The shutdown's origins trace back to deep-seated partisan rifts over spending priorities. Republicans, leveraging their slim majorities in both chambers of Congress, have demanded deep cuts to non-defense discretionary funding and stricter border security measures as conditions for reopening the government. Democrats, controlling key committees, counter that such demands amount to hostage-taking, insisting on a clean CR to maintain current funding levels through the holidays. Negotiations, mediated by House Speaker Mike Johnson and Senate Majority Leader Chuck Schumer, collapsed last week when the Senate rejected a Republican-backed CR laced with immigration reforms. "The chances of passing a bipartisan bill before the payroll deadline were slim to none," a senior Democratic aide confided, citing irreconcilable differences on extraneous policy riders.
This impasse echoes the 23 government shutdowns since 1981, but the 2025 episode stands out for its duration and intensity—the longest since the 35-day closure in late 2018-2019 over Trump's border wall funding. In that prior shutdown, over 800,000 federal workers went unpaid for weeks, costing the economy an estimated $11 billion. Military personnel, however, were shielded by the 2019 Consolidated Appropriations Act, which retroactively provided back pay. Similarly, the 2013 16-day shutdown prompted swift passage of the Pay Our Military Act, ensuring uninterrupted salaries for active-duty troops and certain civilians. "Historically, Congress has treated military pay as sacrosanct, passing standalone legislation within days to avoid morale erosion," noted Dr. Jeremi Suri, a presidential historian at the University of Texas at Austin. "Trump's unilateral maneuver breaks that precedent, raising profound constitutional questions about the separation of powers."
Indeed, the memorandum's legality is already under fire. Democrats and labor unions, including the American Federation of Government Employees (AFGE), have branded it an overreach, arguing it infringes on Congress's exclusive "power of the purse" under Article I of the Constitution. House Minority Leader Hakeem Jeffries (D-N.Y.) thundered on the House floor, "This is not leadership; it's lawlessness. The president cannot raid unspent funds like a personal ATM to paper over his party's failures." The AFGE, representing 750,000 federal workers, announced plans to challenge the directive in federal court, potentially before the U.S. District Court for the District of Columbia. Legal experts are divided: supporters point to precedents like the 2019 redirection of funds for border barriers, while opponents invoke the Impoundment Control Act of 1974, which limits executive impoundment of appropriated monies.
Beyond the military, the shutdown's ripple effects are mounting. Furloughed IRS agents have delayed tax processing, exacerbating a backlog already swollen from prior disruptions. National parks, including Yellowstone and the Grand Canyon, remain shuttered, costing local economies millions in lost tourism revenue. Smithsonian museums and the National Zoo have closed their doors, stranding researchers and families alike. In the realm of public health, the Centers for Disease Control and Prevention (CDC) has halted routine disease surveillance, while Food and Drug Administration (FDA) inspections of imported foods have slowed, heightening contamination risks. Economists at Goldman Sachs project a $1.5 billion daily hit to GDP, with low-income federal workers—many living paycheck to paycheck—bearing the brunt. "This isn't just politics; it's pain for real people," said Sen. Elizabeth Warren (D-Mass.), who has rallied for emergency unemployment benefits for furloughed staff.
Trump's approach to the broader workforce has drawn even sharper rebukes. Unlike past shutdowns, where nonessential employees receive back pay upon resolution, the president has floated threats to terminate thousands outright and withhold retroactive compensation for others. "Why should we reward failure?" Trump remarked during a rally in Norfolk, Virginia, last weekend, referencing civilian Pentagon staff. This stance has galvanized opposition from veterans' groups and unions, who warn it could trigger a mass exodus from public service. The U.S. Coast Guard, operating under the Department of Homeland Security rather than Defense, remains particularly vulnerable; its 40,000 active-duty members were unpaid during the 2019 shutdown, prompting emergency loans from credit unions like Navy Federal and USAA. Those institutions have again pledged zero-interest advances, but such stopgaps underscore the shutdown's human toll.
Public reaction, as gauged by recent polls, tilts heavily against the impasse. A Quinnipiac University survey released Thursday shows 58% of Americans blaming congressional Republicans for the stalemate, with only 32% faulting Democrats. Military families, a potent voting bloc, express relief at the payroll fix but anxiety over the horizon. "We're grateful for the check today, but what about rent next month?" queried Sgt. Maria Lopez, an Army mechanic stationed at Fort Bragg, in an interview with NBC News. Support networks like the USO and Military Family Advisory Network report a 40% spike in calls for financial counseling since October 1.
As the 16th day dawns, glimmers of negotiation persist. Back-channel talks between Johnson and Schumer aim for a weekend vote on a stripped-down CR, potentially averting the October 31 cliff. Treasury Secretary Scott Bessent has warned of depleting extraordinary measures by mid-November, risking a debt ceiling breach atop the shutdown chaos. Trump, ever the dealmaker, posted on Truth Social late Wednesday: "Democrats: End the shutdown NOW, or face the consequences at the ballot box. Our military—and America—deserves better!"
In this high-stakes fiscal drama, the memorandum stands as both lifeline and lightning rod, embodying Trump's combative governance style. Whether it propels compromise or prolongs the pain remains the trillion-dollar question. For now, as service members cash their checks and civilians scan empty inboxes, the nation's capital braces for what could be the shutdown's defining act.
