COAST GUARD PAY AT RISK AS DHS FUNDING DEADLINE APPROACHES JANUARY 30

Congress is again staring down a government funding cutoff, and this time, the stakes are unusually high for the U.S. Coast Guard.

The continuing resolution that currently funds nine federal appropriations bills, including the Department of Homeland Security (DHS), expires at midnight on January 30. If lawmakers do not pass full-year appropriations or another stopgap measure before this deadline, those agencies will begin a partial shutdown on January 31.

The House has passed its DHS funding bill, a package that includes money for Immigration and Customs Enforcement (ICE), the Coast Guard, the Transportation Security Administration (TSA), and FEMA. In the Senate, however, Democrats led by Majority Leader Chuck Schumer have signaled they will block any broader spending package that contains the existing DHS bill, citing ICE enforcement concerns stemming from recent events in Minneapolis.

This week, Schumer took to X to share the following:

“What’s happening in Minnesota is appalling—and unacceptable in any American city. Democrats sought common sense reforms in the Department of Homeland Security spending bill, but because of Republicans’ refusal to stand up to President Trump, the DHS bill is woefully inadequate to rein in the abuses of ICE. I will vote no.

Senate Democrats will not provide the votes to proceed to the appropriations bill if the DHS funding bill is included.”

Independent Senator Angus King, known for helping negotiate the end of a previous shutdown, echoed the concern despite his stated dislike for shutdown scenarios:

"I hate shutdowns," King said on "Face the Nation with Margaret Brennan."

"But I can't vote for a bill that includes ICE funding under these circumstances — what they're doing in my state, what we saw yesterday in Minneapolis," the senator continued, referring to an immigration enforcement operation launched in Maine last week.

The Coast Guard is not the target of this fight, but because it is funded through DHS rather than the Department of Defense (DoD), it is uniquely exposed to the consequences.

Why Coast Guard Pay Is Vulnerable in a DHS Lapse

Military pay runs through annual appropriations. For five of the six armed services: the Army, Navy, Marine Corps, Air Force, and Space Force, that money flows through DoD. The Coast Guard is the exception. Its pay and allowances are funded through DHS.

If DHS funding lapses:

• Active-duty Coast Guard members continue operating under “excepted” status. This includes emerging contingency operations like hurricane preparedness and response.
• Excepted employees work during the shutdown. Excepted civilians may not receive pay until the government reopens. Furloughed employees do not work or get paid during the shutdown.
• Under the Government Employee Fair Treatment Act of 2019 (GEFTA), both furloughed and excepted employees are guaranteed back pay once funding is restored.
• Benefits such as health and retirement continue during the shutdown period, although payroll deductions will stop until pay is restored.

During the 2018–2019 partial shutdown, roughly 42,000 Coast Guard members continued reporting for duty without pay while other military services received their full paychecks via DoD accounts.

What a Shutdown Means for Coast Guard Families

Pay and Allowances

Work continues; pay may pause once funding expires. Under the Government Employee Fair Treatment Act of 2019, retroactive pay is mandatory once the shutdown ends, but there is no mechanism to guarantee on-time pay during a DHS lapse.

Health Care and TRICARE

TRICARE and Military Health System coverage continue uninterrupted. Claims processing may slow due to civilian furloughs.

Retirees and Survivor Benefits

Retiree and Survivor Benefit Plan payments continue from the Military Retirement Fund. Since FY2025, Coast Guard retiree pay has been paid from that fund, insulating those payments from shutdowns.

Reservists and Civilians

Reservists on orders funded by annual appropriations follow the same pay-interruption rules as active duty. DHS civilian employees may be furloughed unless they are excepted or funded through multi-year accounts.

Mutual Assistance and Relief

Coast Guard Mutual Assistance (CGMA) typically activates shutdown loans and emergency aid to help families cover essentials like rent, food, childcare, and utilities.

For Coast Guard households budgeting around rents due on the first, childcare auto-billed every two weeks, and fixed loan payments, even one missed pay cycle creates immediate friction.

One Coast Guard spouse described the situation plainly. Jessica Manfre, whose family has served since 2001, told us this would be the fourth shutdown they have endured. When asked how they were preparing and how she was feeling, she said:

“We are working with our local spouses club and chief petty officers’ association (CPOA) to establish a food pantry and address needs as they come.

As a family, we are able to rely on our savings, but it is incredibly frustrating to be here again.”

Her experience reflects a reality many Coast Guard families quietly navigate during funding lapses: the work doesn’t stop, but the financial uncertainty compounds with each cycle.

For spouses, shutdowns introduce a layer of unpaid emotional labor and household logistics that rarely make headlines: coordinating childcare, managing bills, tracking TRICARE care continuity, and absorbing the stress of uncertainty.

For Veterans now living on fixed income or in the midst of transition, shutdowns can complicate everything from pharmacy receipts to housing paperwork, especially for those relying on multiple agencies for benefits and documentation.

These ripple effects don’t make Coast Guard missions any less critical; they just make the family load heavier and the margin for error in household budgets smaller.

What Coasties Are Asking Right Now

Will I get paid on February 1?

If DHS funding lapses and spans that pay period, pay may be delayed until funding is restored. Back pay is guaranteed later.

Will TRICARE work?

Yes. Coverage continues. Administrative slowdowns are possible.

What about BAH/BAS?

BAH and BAS follow the same rules as basic pay: work continues, payment may be delayed, and back pay is later restored.

What about retirees?

Retiree pay continues because it is paid from the Military Retirement Fund.

What about dependents?

TRICARE and dependent benefits continue as normal.

Potential Scenarios if No Deal Is Reached

Short-Term Continuing Resolution

Funding is extended for days or weeks. Coast Guard pay continues; negotiations shift.

Full DHS Lapse

Work continues under “excepted” status; pay is delayed; CGMA activates support; TRICARE continues.

DHS Removed from Minibus

The DoD and other agencies are funded; DHS and, therefore, the Coast Guard, remain exposed until a standalone deal is reached.

What to Watch on Capitol Hill This Week

• Senate floor strategy: If Democrats hold their block on the DHS bill, the Senate cannot advance the full spending package.
• Separating DHS from other bills: Schumer and others have urged passing the remaining appropriations first and negotiating DHS separately. That would protect DoD pay while leaving the Coast Guard in limbo.
• Short-term CR: A short extension past January 30 would keep pay flowing and delay the shutdown fight.
• Pay protection legislation: Members in both chambers have previously introduced bills to guarantee military pay during shutdowns. Renewed movement would signal recognition of the Coast Guard’s unique funding posture.

The Only Armed Service at Risk When DHS Funding Falters

Shutdowns are often described as political abstractions. For Coast Guard members, they’re about household liquidity, dependent care, and fixed expenses that don’t wait for Congress. Cutters will sail. Watchstanders will stand the watch. SAR crews will launch. The only variable is whether families get paid for that work on time.

As the January 30 deadline approaches, Coast Guard families aren’t just tracking the status of DHS appropriations; they’re tracking whether Congress acknowledges the funding gap that leaves one branch of the armed forces exposed every time DHS becomes the battleground.

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