Minnesota Management and Budget (MMB) continues to work with state agencies to determine what employees, programs, and services may be impacted due to a lack of federal funds as the shutdown persists.
MMB continues to evaluate information from state agencies to determine whether it would be feasible for state agencies to continue operating programs with sufficient federal funding.
During past federal government shutdowns, funding for some programs and services to the states has continued. MMB continues to monitor the situation and work with agencies to see which state programs can continue operating, and which will need to cease operations.
Some employees have already received layoff notices due to impacts of the federal shutdown, and if the shutdown continues more may receive them over time.
The federal shutdown was effective Oct. 1, 2025, at midnight since Congress did not appropriate funding or authorize a continuing resolution for interim appropriations.
Employees laid off or on leave of absence because of the federal shutdown will not be paid, including any holiday pay. Employees who are on federal shutdown-related layoff or leave of absence cannot use vacation, sick leave, paid parental leave, or other forms of paid leave.
No. An employee must be in payroll status on the normally scheduled workday before and after the holiday in order to be paid for the floating holiday. To receive pay for a floating holiday taken immediately before a federal shutdown, the employee must have been in payroll status the day before the floating holiday, and also on the first scheduled workday after the shutdown.
No. When the federal shutdown ends and if funding resumes, employees laid off due to the federal shutdown will be recalled to work.
Temporary, emergency, provisional, or unclassified employees placed on a leave of absence due to the federal shutdown will return to work after the federal shutdown provided there is sufficient funding, unless the appointment is set to end during the shutdown.
Generally, an employee on unclassified leave working in federally funded positions for agencies affected by the shutdown will be placed on an involuntary, unpaid leave of absence from the unclassified position effective Oct. 1, 2025. However, such an employee may choose to end the leave and return to the home agency. Any decision to return will end the unclassified appointment.
After the shutdown ends, if the receiving agency wishes to reappoint the employee to the unclassified appointment, the employee will need to request a new unclassified leave from the home agency. The home agency is not required to grant a request for unclassified leave.
At the end of the shutdown, probationary employees who were laid off due to the federal shutdown may be required to complete their remaining probationary period. Employees should refer to their union contract or compensation plan for further information and contact their Human Resources Office with questions.
Employees will receive a layoff letter from their agency and will be recalled after the shutdown ends if there is funding. Hiring managers and supervisors of affected employees should contact their Human Resources Office for guidance.
Seasonal employees in affected positions will receive a layoff notice. Seasonal employees in positions affected by the shutdown will begin their layoff on the first day of the shutdown for that program or service and the layoff will continue until they are recalled by their agency due to restoration of federal funds, or until recalled from their seasonal layoff, whichever occurs later.
If a seasonal employee’s recall date was anticipated to occur during the shutdown, then the employee will not be recalled until the shutdown ends and funding is restored.
No, such employees are not authorized to work during the shutdown. “Work” includes, but is not limited to, checking e-mail or making work-related phone calls.
Each agency will determine how it will notify employees of recall from layoff or return to work from leave after the shutdown ends. Recall/return-to-work notices may be delivered by letter, by e-mail, or orally. Employees also should monitor BeReadyMN and news reports for shutdown information.
After the shutdown ends, employees are expected to return to work when notified by their agency.
Yes. Employees and their family members can use LifeMatters, EAP counseling, and referral services during the shutdown. This benefit is free and confidential and can be accessed by calling 651-259-3840 or 1-800-657-3719.
There is more information about EAP services at: mn.gov/mmb/segip.
Yes. Coverage will continue through the end of the month during which the layoff or leave of absence occurred and at the level of employer contribution the employee had while on active employment. Employer contributions to insurance coverage may continue depending on the applicable labor contract or compensation plan provisions for layoff or leave of absence. Coverages for such employees would continue automatically but can be dropped during the layoff/leave by contacting MMB. For employees with no ongoing employer contribution, coverage does not continue automatically but can be elected through COBRA. Monthly invoices for continuation coverage will be sent to the employee’s home address.
Medical and dental coverage will be reinstated to the level the employee held prior to the shutdown whenever the employee is recalled or returns to work from the shutdown.
Dropped optional life, accidental death and dismemberment, long-term disability or short-term disability coverages will be reinstated upon the employee’s recall/return-to-work without providing evidence of insurability if the employee is recalled to work within one year. However, an employee who cancels and then has the long-term disability coverage reinstated will have a 24-month preexisting condition exclusion.
If an employee is recalled/returns to work after one year, the employee must reapply and show proof of insurability to reinstate dropped optional employee life, spouse life, and short-term disability coverages. In this case, employees who dropped long-term disability and child life insurance will not be able to add this coverage again until the first Open Enrollment after their recall/return-to-work.
No, they will not automatically continue. Affected employees will receive a continuation form in the mail from MMB and must elect to continue an MDEA throughout the layoff/leave. The continuation form must be received by MMB within 60 days. If MDEA continuation is elected, qualifying medical and dental expenses incurred during the layoff/leave are eligible for reimbursement through an MDEA.
No, these accounts are not eligible to continue during a layoff/leave. Because DCEA and TEA accounts may only be used to reimburse work-related transit and day care expenses, expenses incurred while on layoff or leave of absence do not qualify as a reimbursable expense. Affected employees may continue to submit for eligible expenses incurred before the layoff/leave.
The insurance coverage for employees will begin according to the applicable contract or plan. Usually this means the coverage for an employee whose 30-day waiting period ends while on federal shutdown-related layoff or leave of absence will begin on the first day the employee is at work.
Yes. Employees who continue to be enrolled in coverage during their layoff or leave of absence must complete their Open Enrollment elections on a timely basis. They will not have the opportunity to make election changes again until the next Open Enrollment or upon a qualifying life event.
Employees who are laid off or on a leave of absence and are in their 30-day waiting period must complete their enrollment by the date provided in their enrollment packet even if coverage may not begin until they return to (or begin) work. Not completing an initial enrollment on time may result in the loss of wanted coverage options or enrollment in unwanted coverage with no option to make changes again until the next Open Enrollment or upon a qualified life event.
Yes. Employees on a federal shutdown-related layoff or leave of absence still have access to Self Service. Employees will be able to access their W-2s and may enroll in benefits if they are in an enrollment period. The Self-Service website will be available as usual at www.state.mn.us/employee.
Employees who are unable to access Self Service may email selfservice.mmb@state.mn.us.
Severance will be administered in accordance with the applicable contract or plan. Employees should refer to their union contract or plan for further information and contact their Human Resources Office with questions.
Employees on federal shutdown-related layoff or leave of absence who retire have 30 calendar days from the effective date of the layoff to download, complete, and submit the retiree insurance forms to continue insurance as a retiree.
The shutdown will not affect current retirees’ insurance. Retired employees will continue to receive invoices and must continue payment to ensure their coverage is maintained.
Employees who are on a federal shutdown-related layoff or leave of absence who have an FMLA-qualifying event during the shutdown should contact their Human Resources Office.
FMLA requests of employees assigned to work during the federal shutdown will be administered according to the FMLA policy.
No. Employees who are on federal shutdown-related layoff or leave of absence cannot use vacation, sick leave, paid parental leave, or other forms of paid leave.
Employees assigned to work during the federal shutdown may use vacation, sick leave, paid parental leave, or other leave as allowed under the applicable leave policies, contract, or plan. Employees should consult with their Human Resources Office.
Such employees will be laid off or placed on a shutdown-related leave of absence. Such employees may receive an employer contribution for insurance benefits according to the applicable labor contract or compensation plan provisions for layoff or leave of absence.
Employees who need to resume FMLA or PPL after the shutdown ends and funding resumes, should contact their Human Resources Office.
Employees laid off or on leave of absence due to the federal shutdown may be eligible for unemployment insurance (UI) benefits. Employees may apply for UI benefits at www.uimn.org/uimn/.
Employees with accepted Workers’ Compensation claims can continue to receive reasonable and necessary medical treatments during the shutdown. Payment will be made on the same basis as if there were no shutdown.
The shutdown does not change the process to report a work-related injury. Employees who are working during the shutdown and incur a work-related injury must report it to the supervisor on duty. The supervisor will be responsible for completing a First Report of Injury.
Each case is different so injured workers should ask the Claim Specialist managing their claim file. The general information number for the Workers’ Compensation Unit is 651-201-3000.
We anticipate that access to all Capitol Complex buildings, tunnels, parking facilities, and facility services will operate on a normal schedule throughout the federal shutdown.
Minnesota IT Services (MNIT) may issue layoff notices to employees who are supported by funding from agencies that are impacted by a federal shutdown. MNIT will make those determinations after state agencies have assessed their needs and determined impacts to IT services, and after considering other options.
Yes, Minnesota IT Services will operate during a federal shutdown. The extent to which Minnesota IT Services will be impacted will be dependent on the size, scope, and duration of a federal shutdown and its impact on state agencies.
