Pentagon Accepts $130 Million Gift as Shutdown Withholds First Full Paychecks - Finance 50+

Pentagon Accepts $130 Million Gift as Shutdown Withholds First Full Paychecks

The U.S. Department of Defense confirmed on Friday, Oct. 24, 2025, that it has accepted an anonymous $130 million donation intended to help cover military salaries during the ongoing federal government shutdown. The announcement came as more than half a million civilian federal employees missed their first complete paycheck and lawmakers remained deadlocked over a longer-term funding measure.

Pentagon turns to private money to safeguard troop pay

According to a statement from the Pentagon’s Office of Public Affairs, the contribution was received on Thursday under the department’s general gift acceptance authority. The donor stipulated that the funds be used solely to offset the cost of service members’ salaries and benefits. The shutdown’s continuation threatens pay for roughly 2 million active-duty and reserve personnel, a payroll estimated at $6.8 billion for the current pay period.

Earlier this month, the administration rearranged existing appropriations within the nearly $1 trillion defense budget to keep paychecks flowing, but officials warned those internal resources would be exhausted if the funding lapse persists. The newly accepted gift provides a temporary buffer but covers only a fraction of the total requirement.

Second-longest shutdown enters fourth week

Now in its 24th day, the funding impasse is the second-longest shutdown in U.S. history. Republican and Democratic leaders in Congress have not bridged differences over topline spending levels and health-care provisions tied to the stopgap legislation. Several attempts in the Senate to advance a continuing resolution that would reopen agencies through Nov. 21 failed to clear procedural hurdles. The House of Representatives has been in pro forma session only, with no recorded vote since Sept. 19.

House cancels votes for another week

During a brief Friday session, the House clerk read a notice designating Oct. 27 to Nov. 2 as a district work period. The chamber will remain on 48-hour recall but will not meet for legislative business unless the Senate sends over a bill capable of ending the shutdown. It is the fifth consecutive week without floor votes, leaving no immediate path for a bicameral agreement.

Pay disruption spreads beyond the military

Friday marked the first full pay cycle in which many civilian employees received no salary. The Office of Personnel Management previously estimated that more than 500,000 workers would be affected, including staff at agencies responsible for public safety, scientific research, and immigration processing. While some personnel have been deemed “excepted” from furloughs and are continuing to work, they will not be compensated until funding is restored.

State governments are preparing for additional fallout. Several have cautioned that they will be forced to suspend Supplemental Nutrition Assistance Program (SNAP) benefits starting Nov. 1 if federal appropriations remain frozen. The program serves millions of households and relies on monthly transfers from the Department of Agriculture.

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Stalemate prompts frustration on Capitol Hill

Senators departing Washington for the weekend characterized negotiations as stalled. Members of both parties acknowledged that little progress had been made during the week and said they expected the dispute to stretch into November absent a significant breakthrough. Some Republican lawmakers maintained that Congress, not the White House, bears responsibility for crafting a compromise, while others expressed concern about the growing economic impact on federal personnel and contractors.

Historical context and next steps

The current funding lapse began after the previous continuing resolution expired on Oct. 1, the start of the new fiscal year. By surpassing the three-week mark, the shutdown trails only the 35-day closure that spanned December 2018 to January 2019. Unless Congress enacts either an omnibus appropriations package or another stopgap bill, agencies ranging from the Internal Revenue Service to the National Park Service will continue operating with limited staff and curtailed services.

Policy analysts note that prolonged shutdowns can increase backlogs, delay contract awards, and raise overall costs once operations resume. Historical data compiled by the Government Accountability Office show that previous funding gaps have cost taxpayers hundreds of millions of dollars in lost productivity and administrative expenses.

Legislative leaders have not announced a formal timetable for renewed negotiations. The Senate is scheduled to reconvene on Monday, while the House will remain in recess unless called back. If no agreement is reached before Nov. 1, federal agencies will be required to issue a second round of furlough notices, and many states will move forward with suspending nutrition assistance payments.

For the Defense Department, the anonymous $130 million contribution offers only short-term relief. Officials emphasized that continued pay protection for military personnel ultimately depends on congressional action to restore full funding across the federal government.

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John Carter

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