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WASHINGTON — The U.S. federal court system will begin furloughing employees and curtailing non-essential operations on Monday after depleting funds reserved to maintain paid operations during the government shutdown, according to an internal judiciary memorandum issued Thursday.

Judge Robert J. Conrad, Jr., Director of the Administrative Office of the U.S. Courts, notified all federal judges, circuit executives, and court administrators that Phase 2 of the appropriations lapse takes effect at midnight October 20, 2025. Employees will receive furlough notices Monday morning before orderly shutdown activities commence.

The funding crisis hits the federal judiciary significantly harder than during previous government shutdowns. Court units and federal public defender organizations exhausted contingency funds after operating just 17 days into fiscal year 2026 without congressional appropriations.

Shutdown Operations and Excepted Activities

During Phase 2, judiciary entities must operate according to pre-approved shutdown plans and perform only activities "excepted" under the Anti-Deficiency Act to avoid criminal violations of federal spending law. The Act prohibits federal agencies from incurring obligations or making expenditures exceeding available appropriations.

Although the Judiciary Integrated Financial Management System posted budget allotments equivalent to 50 percent of the FY 2026 interim financial plan on September 30, those funds may only record obligations for excepted activities—not sustain general paid operations.

The Administrative Office conducted emergency training on October 15 to help courts develop and execute Phase 2 shutdown plans. Conrad's memorandum emphasizes that excepted activities typically include constitutionally mandated functions such as criminal proceedings, prisoner habeas corpus petitions, and cases involving imminent threats to life or property.

Impact on Court Operations and Civil Litigation

Civil litigation across federal district courts faces mounting delays as non-essential proceedings halt. Civil trials, motion hearings, and discovery deadlines in cases without constitutional urgency will be postponed indefinitely until appropriations resume.

Criminal prosecutions will continue under excepted-activity designations, ensuring Sixth Amendment speedy trial rights and maintaining public safety operations. Federal public defender organizations remain operational to fulfill constitutional requirements, though staffing levels may be reduced.

Employee Furloughs and Payment Obligations

The Government Employee Fair Treatment Act of 2019 mandates that all judiciary employees—whether furloughed or designated to perform excepted activities—receive back pay at the earliest date possible after appropriations are enacted. Conrad's memorandum acknowledges the "complex financial implications" furloughs create for affected employees and their families.

Federal court clerks, probation officers, pretrial services officers, circuit mediators, and bankruptcy administrators face uncertain work schedules depending on their designation status. Only employees performing activities deemed constitutionally or statutorily required will report to work during Phase 2.

Broader Government Shutdown Context

The judiciary's funding crisis stems from Congress's failure to pass FY 2026 appropriations legislation covering the federal court system. While the judiciary operates as an independent branch under Article III of the Constitution, it depends on congressional appropriations for operational funding.

The October 1 fiscal year start without enacted appropriations forced the judiciary to rely on carryover balances and fee collections. Court filing fees and other revenue sources sustained operations through October 17, but proved insufficient beyond that point—a significantly shorter runway than during the 2018-2019 government shutdown when judiciary operations continued for weeks longer.

Conrad's memorandum reflects the urgency facing the third branch of government as legislative gridlock threatens core judicial functions. Federal courts handle approximately 400,000 cases annually, including criminal prosecutions, immigration matters, bankruptcy proceedings, and civil disputes involving billions of dollars in claims.

What's Next

The judiciary awaits congressional action to enact FY 2026 appropriations or a continuing resolution that would restore operational funding. No timeline exists for when Congress might pass funding legislation or when the President might sign it into law.

If the shutdown extends beyond several weeks, even excepted activities could face disruptions as administrative overhead and support functions deteriorate. Court security, building maintenance, and IT systems require ongoing funding that may prove difficult to classify as excepted under Anti-Deficiency Act standards.

Conrad indicated the Administrative Office will continue updating judiciary personnel on appropriations status as developments occur. Courts have been instructed to monitor JNet, the judiciary's internal communication platform, for operational guidance.

The Government Employee Fair Treatment Act guarantees back pay but provides no timeline for when payments will occur, creating immediate financial hardship for furloughed employees. Historically, back pay has been disbursed within days of appropriations enactment, though processing thousands of payroll adjustments across the federal judiciary could take additional time.